Montenegro has an excellent geographic location on the Adriatic coast, a real GDP growth rate that has been steadily increasing for ten years, a steady expansion in the tourism industry, and a high standard of living. The Montenegro real estate market is currently in the limelight for investment for many foreigners worldwide because of its stable currency, low real estate tax rates, and the chance to get Montenegro residency through property acquisition and Montenegrin Citizenship through investment. Our post takes you on a journey through the factors affecting the Montenegro property market, trends in Montenegro real estate sales, and the best places to buy property in Montenegro.
A Rising Star
Local real estate professionals have loved witnessing Montenegro develop into a significant second-home and property-investor market in the Mediterranean during the past 15 years. The mixed-use developments Porto Montenegro and Lutica Bay had the highest sales-absorption rates in the area in 2018 as evidence of this. Montenegro is successfully striking much above its weight. One reason for this is Montenegro’s capacity to satisfy all tastes: potential investors can select from deluxe beach resorts, charming riverside homes, or new businesses catering to the region’s increasingly well-liked mountain and ski resorts in the north.
Montenegrin Economy and FDI
Unquestionably, Montenegro is a nation with a bright future. Its robust economy and booming tourism industry make it a fantastic place to invest, as seen by the GDP growth rate of the nation. The GDP of Montenegro has been growing consistently in real terms since 2011. The period from 2011 to 2019 indicates a GDP rise, with the lowest growth rate in 2014 at 1.8% and the highest at 5.1%. Naturally, salaries also increased as a result of the GDP growth rate. Average gross and net salaries in January 2022 were 890 EUR and 686 EUR, respectively.
According to information published by the Central Bank of Montenegro regarding foreign investments, there have been minor fluctuations in the amount of foreign direct investments coming into the country over the past ten years. The average net FDI inflow increased 11.3% y-o-y between 2011 and 2021, totaling EUR 496.43 million.
The Montenegrin real estate market is anticipated to gain from the steady economy of the nation. Montenegro has maintained a healthy economy despite the difficulties caused by the COVID-19 pandemic, with low unemployment rates and sustained growth in essential industries like tourism and real estate. It will remain stable, making it a desirable location for foreign investors interested in the Montenegro property market in 2023.
Trends in the Montenegro Property Market
The activity of property buyers in Montenegro over the past ten years has revealed consistent trends that have formed the Montenegro real estate market. Here are the leading market trends shaping the Montenegrin real estate sector.
Overseas Buyers
The rise in foreign real estate buyers is undoubtedly one of the significant trends in the Montenegro property market. With the opportunity to participate in the Montenegrin Citizenship by Investment Program and the option of acquiring a Montenegro residence permit based on property ownership, more and more foreigners are choosing to invest in the Montenegrin property market and call this developed nation their home. Foreign investors are welcome to buy property in Montenegro fairly; the conditions for foreigners to purchase are the same as for locals.
Increase in Luxury Resorts
The last ten years have seen increased interest in luxury houses in Montenegro, particularly in the coastal regions that center the country’s tourism industry. Rising demand for these properties and Montenegro’s status as a premier location for investment were influenced by grand projects like Lustica Bay, Porto Montenegro, and Porto Novi. Consequently, luxury real estate in sought-after coastal towns like Kotor, Tivat, and Herceg Novi is taking center stage. Investors now have a selection of high-class homes and Montenegrin apartments along the coast in prime tourist hubs.
However, luxury serviced developments like our apartments for sale in Kotor have the edge over other residences. In particular, they provide year-round care of your property, allowing you to relax and not worry about potential issues.
Coastal Property Demand is Rising
The Montenegrin real estate market still has a substantial demand for vacation apartments despite the rise in interest in year-round residences. The need for vacation houses and rental properties rises along with the nation’s tourist sector. Many foreign investors are searching for investments to rent out to tourists during the high season. This pattern is anticipated to continue through 2023 and beyond, with the coastal region remaining a well-liked travel and real estate investment destination.
Buyers prioritize the apartment’s sea view and proximity to the waterfront when choosing a vacation rental. These apartments are typically occupied during the holiday season for a few weeks. Kotor is a well-known tourist destination in Montenegro, so Kotor real estate is particularly well-liked for buy-to-let vacation rentals.
Where are the Prime Properties in Montenegro?
Whether you are looking for an investment property in Montenegro or a house for sale in Montenegro as a second home, the Bay of Kotor apartments should be high on your checklist. Due to the success of Porto Montenegro, Tivat town, which is situated in the Bay of Kotor, has undergone tremendous change and now boasts the highest coastal property prices. You can find a one-bedroom apartment for sale in Tivat starting at around EUR 120,000.
Similarly, Kotor’s gorgeous old town, encircled by fortifications constructed during the Venetian era, is a popular tourist destination on the Adriatic coast. Travelers with high standards will undoubtedly be drawn to the magnificent new serviced apartment alternatives to hotels offered by upcoming complexes like Royal Town Kotor. Our Kotor apartments are for sale with pre-launch prices starting at as little as 98,000 Euros.
Royal Town Kotor – A Paragon in the Montenegro Real Estate Market
There is no doubt that the Montenegro real estate market is on the up, and you need to be quick to secure your dream property in this Balkan dreamland. As expert property developers with incredible local knowledge, we have brought fantastic rentals and apartments for sale in Tivat and an upscale beach club to the Montenegro property market. But if you missed out on our apartments at Royal Blue Montenegro, don’t dismay.
You can be among the first to secure an exclusive apartment for sale in Kotor at our new project- Royal Town Kotor. Ideal as an option to invest in Montenegro or as your new address in this enchanting country, our luxury Kotor apartments are a perfect choice. With high-end amenities and a comprehensive management service, you can make your dream of owning property in Montenegro come true. So contact our local experts for an individualized consultation today.
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