Advantages of investing in real estate in Montenegro in 2024?
In conditions of general global turbulence, the right choice when buying real estate abroad certainly becomes an effective tool for diversifying an investment portfolio, which in turn allows you to mitigate risks and ensure stability.
Montenegro is a small but very colorful country, surprisingly versatile, attracting not only tourists, but also relocators. Located in southeastern Europe, on the Adriatic coast of the Balkan Peninsula, Montenegro is famous for its sea and mountain resorts, historical and cultural heritage, and a large number of sunny days a year.
Economy of Montenegro as an attractiveness factor.
The economy of Montenegro is one of the fastest growing economies in the Balkans and shows stable growth year after year. Sustainable economic development creates a comfortable atmosphere for business development and investment, including real estate. An important factor for the growth of investment attractiveness is the signing by Montenegro of an agreement to join the European Union, which has a positive effect on the economic and social development of the country, including its position in the international market. Tourism in Montenegro plays an important role in the economy. The country's strategy, focused on the creation and development of an elite tourist destination, is becoming a driver for the growth of the investment potential of resort real estate.
The main advantages of investing in real estate in Montenegro:
Analysis of the real estate market in Montenegro.
Property prices in Montenegro still remain low compared to other European countries, but are showing moderate growth every year. This makes buying real estate in Montenegro profitable in the long term and an excellent tool for obtaining a stable income.
“It must be said that Montenegro is in the process of implementing reforms aimed at improving the investment climate and business conditions. And this is a positive marker. And despite foreign policy pressure, Montenegro has become one of the most promising and sought-after real estate markets for Russian citizens due to the similarity of language and mentality, the absence of a visa regime for Russians, as well as a high level of security compared to other popular resorts.” - notes the Head of Analytics and Investment Block of VelesClub Int. Ksenia Shamitko.
According to the Montenegrin statistical agency Monstat, at the end of 2023 the average cost of apartments in new buildings in Montenegro was 1,643 € per m2:
The average cost per square meter in new buildings in Montenegro depends on various factors. The volume of commissioning of subsidized and social housing has a significant impact. And of course, the cost of real estate will greatly depend on the location of relatively tourist-attractive locations, proximity to the coast and the class (level of comfort) of the complex.
Key drivers of the Montenegro real estate market in 2024.
The Montenegrin coast remains a popular place to purchase real estate. Interest in housing is increasing, especially in resort towns, including Herceg Novi.
Do not exclude from your attention the direction of ski resorts, for example, Kolasin. Combined with the low cost and the country’s commitment to further strengthening the development of tourism, such real estate will be in demand and have a good return on investment potential.
As the flow of tourists increases, the demand for rental property also increases. Many buyers are considering a long-term ownership strategy, so they prefer to rent out their property and receive a stable income.
A remarkable fact is that buyers are increasingly paying attention to environmentally friendly facilities and green technologies. Real estate with environmental certificates is becoming more in demand.
New projects that form infrastructure solutions also have a positive impact on the development of the real estate market and make Montenegro attractive both for living and investment.
Investments in real estate always require assessment, informed decisions and complete trust in market experts. A team of experienced managers at VelesClub Int. I am always ready to answer all your questions and accompany you at all stages of the transaction and subsequent reinvestment and diversification of your investment portfolio.