Montenegro Property Market Overview for 2024

13.12.2024

Montenegro Property Market Overview for 2024 - As 2024 comes to an end, Montenegro’s property market continued to attract global attention for its investment potential, stunning landscapes, and lifestyle appeal. Even though prices are rising, much like they are globally, Montenegro is still relatively more affordable when compared with other European hotspots meaning it has remained as a prime destination. Here, we explore key market trends, statistics, and projections, offering insights into why this Adriatic gem is highly appealing for both property buyers and investors.

Market Trends and Statistics

• Surge in Property Prices: The latest stats that we currently have access to show a particularly strong rise in the average price per square meter of new residential dwellings, of 21.4% year-on-year, reaching €1,821 per square meter. This follows substantial increases in previous quarters, including a 30.95% rise in Q1 2024 and 27.95% in Q4 2023
  
  
• Regional Variations:
• Coastal Region: The coastal areas, particularly Budva, Kotor, and Tivat, have seen the most significant price hikes. In Q2 2024, dwelling prices in these regions averaged €2,107 per sq. m, up by 49.1% from the previous year.
• Podgorica: The capital city experienced an 11.5% increase, with average prices at €1,763 per sq. m.
• In the Central Region: It too rose strongly by around 34% year on year to €960 per square meter.
  
• In the Northern Region: The average per square meter price here was pretty steady, coming in at around €1200 per square meter.
  
  
• Foreign Direct Investment (FDI): Though the full figures for 2024 haven’t fully been released yet, FDI in Montenegro's real estate sector for 2023 totaled approximately €463 million, which was a 3% increase from the prior year. Despite a small downturn for the first 8 months of 2024 by 4.01%, which can be attributed to the introduction of a progressive property tax, demand is still particularly high and the figures surpass that of pre-pandemic levels.
  
  
• The IMF (International Monetary Fund): Expectations for economic growth according to the IMF were 3.7% for 2024, with the World Bank and European Commission making it 3.4%.

Lifestyle Appeal

Montenegro continues to captivate with its diverse attractions:

• Natural Beauty: From the stunning Adriatic coastline to the majestic Durmitor mountains, the country's landscapes offer a serene environment for residents and visitors alike.
  
  
• Cultural Richness: Historic towns, vibrant festivals, and a rich culinary scene contribute to a high quality of life.
  
  
• Tourism Growth: Tourism is a major contributor to Montenegro’s GDP and it’s natural beauty continues to attract high profile visitors including Bill Gates, Michael Douglas, Catherine Zeta Jones, Madonna, The Rolling Stones, The Beckham Family and Novak Djokovic plus plenty more. In 2023, arrivals to the country rose by 19.7% year on year and in the first nine months of 2024 it increased again when compared to the same period last year showing total numbers of 1,226,499. Most visitors came from the likes of Serbia, UK, France, Germany, Poland and Bosnia Herzegovina.

Investment Potential

Several factors enhance Montenegro's attractiveness to investors:

• Progressive Property Tax: Introduced in January 2024, this tax system imposes rates based on property value, aiming to stabilize the market and generate revenue from high-value transactions
  
  
• EU Accession Prospects: Progress toward EU membership is anticipated to boost property values and investor confidence.
  
  
• Rental Yields: Rental yields have been increasing year on year with an average of 6.67% in the Capital, 5.08% in Tivat and 5.49% in Budva.

Outlook for 2025

Looking ahead:

• Market Stabilization: While property prices have risen sharply, experts anticipate stabilization in prices, partly due to new tax policies.
  
  
• Sustained Foreign Interest: Despite recent tax changes, foreign investor interest remains robust, indicating continued confidence in Montenegro's property market.

In summary, Montenegro's property market in 2024 reflected a dynamic environment with rising prices, strong foreign investment, and a compelling lifestyle appeal. As the country navigates new tax policies and progresses toward EU integration, it remains an attractive destination for property buyers and investors.

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Reviews

• In period May-August 2022 we sold our flats in St-Petersburg Russia and  have bought two  ones here in Montenegro, Becici. We decided to move here and make new home and business with my husband. Our agent Milica Zugic  is really became our angel - provider here in Montenegro. She is very reliable, responsible , professional  employee of CMM Budva department. She has developed intuition and found very fast necessary properties which we needed. Also she helped us to speed up the process of registration documents in MUP.( list nepokretnosti, etc). She was our real provider here. Very appreciated her and all staff of Budva department for there assistance. Separately to lawyer Ivan and his legal team. Very recommended choose Milica Zugic as real estate manager when you search for assistant in this complicated and important field as buying property in Montenegro.

  Liudmila Nosova St-Petersburg Russia , 13.09.2022 09:20:09

• At the beginning of April 2022, our family living in Prague bought a house in Sutomore with the assistance of your company.
  Let me express my gratitude to the management of your company for the service provided, and especially to your employees - Anastasia Zeyak, Alexei Grachev and Elena Bozhovich for their attention, patience and even care for the whole time of buying real estate and the services provided after the purchase.
  I would really like all companies to work with the same quality of service. After coming into contact with this kind of attitude towards the client, all our environment, if necessary, will refer to your company only.
  With gratitude on behalf of our family.

  A.V. Ter-Gazaryan, 12.07.2022 10:32:19

• Based on my experience with CMM in Budva, Montenegro, I can say that they are reliable, fast, and they deliver what they promise. They take really good care of their clients. For instance, I was offered a lift from the airport, and they would take me back and forth from Tivat to Budva and Becici to see various properties. They would answer all of my questions and respond promptly. They have an excellent team: Katarina, Alexander, Natasha, Martin and some other guys whose names I don’t remember. Katarina, my wonderful agent, went to every length to help me find a perfect home. Unfortunately, my situation changed and I had to postpone my relocation to Montenegro.
  I would strongly recommend this company to anyone who is looking for a property in Montenegro.
  

  Val , 13.05.2022 02:18:13

• We were introduced to CMM by friends who had already done research on Montenegro and CMM. We purchased our apartment in Dobrota, just outside Kotor, all remotely from South Africa, during the lockdown. Everything was seamless without any problems at all. All the CMM departments work together well from the sales team, head office, legal, interior design and rental department. Every detail was well communicated with an abundance of zoom meetings, videos, emails etc
  We are thrilled with the outcome and enjoyed working with the CMM team. They were incredibly professional.
  After sales service is also excellent as we move into the rental phase of the apartment and over all management of the apartment including maintenance.
  We have been directly and indirectly involved with many houses/apartments all over the world and this was the up there with the best service we have received.
  Thanks to everyone we dealt with at CMM it has been an absolute pleasure dealing with you all. We look forward too many happy years working with you on our rental.
  

  Mandy and Antoine, 06.10.2021 08:56:22

• Biz Montenegroda CMM komandayla  tanish olmushug. Snejana ve Milan bize cox  yaxshi destek olublar. Artig bizim burada evimiz de var. Bize gosterdiler cox yuksek service, ve artig butun bizim senedler de gaydasindadir. Boyuk hormetle onlara Cox sagol bildiririk!

  Dilara, 01.10.2019 06:17:27

• Last year we decided to find a new home close to the sea. It was quite difficult in the beginning to make the right choice. Once we found CMM Company was a great luck! We immediately received detailed consultation on the country and purchase opportunities. Being attracted by Kotor - one of the most amazing parts of the coast, we decided to take a family trip and maybe make our dream of new home come true. As just discoverers of Montenegro, we were accepted like at home which was a one more pleasant surprise. The most important, we received all detailed information about country regions and procedure of buying property during the first few days. And how beautiful the car journeys were! Difficult choice, but when you find the home you want you can't refuse it. CMM did best to help us with this finding! All the purchase procedure passed well with CMM professional work! Now we are happy owners of a wonderful house with a Kotor bay view, being perfectly served by CMM Management company (of course, we've chosen CMM as professional house manager). Hope our friends and relatives would also move to Montenegro with the CMM help soon !!!

  Kate, 22.03.2019 11:06:21