Investment in Montenegro Develops Further As Property Prices Increase by 7%

Montenegro is one of the world’s fastest growing tourist destinations of the modern era and as its economy continually demonstrates positive growth (bar the covid pandemic) it’s no surprise that there’s an influx of property investment throughout the major resorts, resulting in an average price increase of around 7%, with new builds rising by between 10% and 13%.

In the popular coastal resorts such as Budva, Kotor and Tivat, prices per square meter for the 1st quarter of 2022, were between €1838 and €2025, and in the Capital, Podgorica, it was around €1683. Rental property has also increased, with a three bed apartment now setting you back between €880 and €1370 per month in the costal resorts and €570 per month in Podgorica.

It’s widely expected that the upwards trend in property investment is set to continue both from domestic and from foreign buyers firstly due to a current shortage of property, a plethora of amazing new build developments hitting the market such as on the Luxury Lustica Bay, a small coastline most of which is protected or difficult to build on, a wider availability of mortgages and finance options, plus a huge growth in the number of expats and holiday home owners.

Property prices in Montenegro are still very attractive compared to their European counterparts such as Spain & Portugal, and there’s expected to be a further increase if/when Montenegro joins the EU (of which membership is still a distinct possibility). One of the programs that has been rather successful to date, is ‘Citizenship by Investment’ which started in 2020 and has so far resulted in 409 positive applications. For an investment of €250,000 + a €100,000 donation to Montenegro for the improvement of less developed areas in the North, successful applicants can then become a Citizen of Montenegro, and take advantage of visa free travel to 124 countries (including Schengen area), favourable tax rates and an average rental yield of between 6% and 12%.

Increases in Property Prices are not only good for those who are buying in Montenegro and intend to take advantage of Summer Rentals (as the yields over this period will be strong) but it’s also a positive for those who are thinking of a more longer term investment, or those who are wishing to sell. It works for everyone, both buyers and sellers of Property in Montenegro.

CMM Investment Group have recently been voted as one of the best 100 companies to work for in Montenegro, and not only that, but they’ve also just celebrated their 15th year anniversary. Whether you want to take advantage of the ‘Citizenship by Investment’ program, or you want to invest in Montenegro for holiday home or permanent living purposes, do contact us with your requirements and we will be happy to assist with your Property journey!

07.07.2022