Montenegro is one of the youngest countries in the world. Its independence was proclaimed and recognized by the United Nations in 2006, after Montenegrins voted in a referendum to secede from Serbia. Unlike today's story with the secession of Kosovo, then everything went peacefully. Property owners have received confirmation of their rights under the new jurisdiction. Montenegro has a population of 650,000 people, and its area is less than a third of the Moscow Region. At the same time, about 200,000 tourists from Russia come to the country per year, and 10,000 Russians live there permanently.
Few other countries in the world can compare with Montenegro in terms of cultural proximity to Russia. Montenegrins are Slavs, and 70% of the population profess Orthodoxy. Russia has long supported the Montenegrins in their struggle against Turkish expansion, and they still do not forget it. However, the abundance of Russian tourists in the resorts of the country today sometimes causes an ambivalent reaction. But in general, Russians are welcome here – and not only because of the cultural proximity, but also because they bring a lot of money to the country, some of which falls on the real estate market. For Russian citizens, a visa-free regime remains in Montenegro for the time being.
Private land
The southernmost city of Montenegro, located on the Adriatic coast – Ulcinj. The history of the city dates back three millennia. For several centuries Ulcinj was the "capital" of piracy on the Adriatic. From Ulcinj to the border with Albania, there is the largest sandy beach on the Adriatic coast, which is 13 km long and about 60 m wide. But many Russian real estate buyers have chosen another city in Montenegro – Budva and its surroundings, which are rightfully considered the most picturesque on the coast.
The length of the sea coast in Montenegro is small – 294 km, of which only 73 km are beaches. The peculiarity of Montenegro is that almost all the land that enters the market and has a resort potential belongs to private individuals. And almost always these are very small plots. Unlike Croatia, Montenegro has no restrictions on the minimum size of the plot for the construction of a house, which has led to a high density of low-rise buildings. To purchase a large plot, you need to buy several allotments from different owners. However, this makes sense only for the implementation of a commercial project – for example, the construction of a hotel (such a project must be approved by the authorities). You will hardly be allowed to build a private house on a very large plot by the local authorities.
Remnants of socialism
Montenegro's real estate market is hardly civilized. True, it is not as wild as in Russia, but it is also far from Western European samples. Unlike other parts of the former Yugoslavia, there was no war here, but you are not immune from the risk of claims from former land owners, since there is no full-fledged real estate cadastre in the country. That is, the registration of the transaction does not mean that your rights cannot be challenged by the former owners.
With new buildings, too, everything is not so simple. Buying an unfinished object involves significant risk, especially if you are dealing with a little-known company. Sometimes an investor departs from a project or changes its purpose, hoping to settle everything with bribes. But this is not always possible, and it came to the demolition of houses. It also happens that a developer sells all the apartments and dissolves without paying the utility taxes due to the treasury. In this case, the object will not be registered, which means that buyers will not be able to register their rights.
The buyer of new apartments may be pleased that they will not be charged the entire amount at once, as is customary in Russia. Of course, the apartment is much cheaper at the construction stage, so such a purchase can be considered a justified risk. Moreover, the scale of the problem is not so great – most often developers manage to settle problems with officials. These "arrangements" of business and government are simplified due to the traditional cronyism that still exists in Montenegro. But it's definitely not worth buying a "problematic" object on the secondary market on your own. And there is such a risk, because numerous amateur brokers are scurrying around in Montenegro, trying to sell the houses of their friends and acquaintances to naive foreigners. It is better to deal with a reputable company that at least has a Moscow representative office and a large database of facilities.
Careful, the ground!
In addition to "secondary" housing or new apartments, in Montenegro you can buy a plot of land for construction, and, as in Croatia, the purchase of land is carried out only by a legal entity. But it's not that simple here either. Not so long ago, a norm was adopted according to which building is prohibited unless the functional purpose of the site is determined. And it is determined at the level of drawing up the general plan of the territory. In many cases, such plans have still not been developed. In addition, it should be borne in mind that for the construction of a private house it will most likely be impossible to buy a plot in close proximity to the sea: the first line is intended mainly for the construction of hotels.
The coastline itself is not subject to development at all. In some cases, the boundary of this zone is not clearly defined, so it is better to keep a respectful distance from the seashore, as well as from national parks. It is much easier to get a building permit if the site is located within the city or there are ruins of an old building on it. But even in this case, the maximum number of floors and the percentage of development of the site are limited.
Thousand Islands
Croatia is considered a more "European" country. There is less corruption, better infrastructure, and property prices are slightly higher than in Montenegro. The climate in these countries varies little: winters are mild, the coast is snowless, summers are moderately hot, about 300 sunny days a year. By car from Croatia, you can get to Italy, Hungary, Austria or Germany in 2-3 hours, and by boat by sea in three hours to Venice.
Most of the resort towns in Croatia are very small – within 10,000 inhabitants, low-rise buildings prevail. The coast of Croatia is much longer than in Montenegro, so there is more choice here. Resort properties can be purchased on the Istrian peninsula, in Dalmatia, on the shores of Kvarner Bay, on various islands. Istria is the northernmost part of the country, which borders Slovenia. Italy is about 40 km away from here, and many locals consider themselves Italians. The shores of Istria are rocky, and the landscape is mostly flat. But Kvarner Bay, on the contrary, amazes tourists with a variety of landscapes – mountains, rivers, lakes, dozens of waterfalls, beaches unlike each other. The architecture here is more influenced not by Italy, but by the former Austria-Hungary. And finally, Croatia deservedly has a reputation as a country of "thousands of islands" – especially since hardly anyone can specify their exact number.
They have been waiting for the promised three years
If we compare Croatia and Montenegro in terms of demand from Russian real estate buyers, Montenegro is undoubtedly the leader, despite its smaller size. Indeed, in Montenegro, unlike other countries, the Russians managed to push the British, Irish and all other foreign buyers of real estate into the background. Montenegro's leadership is explained not only by its Orthodox roots and lower prices. The Croatian market has one unpleasant feature: an individual needs to obtain permission from the authorities to purchase real estate.
And the main problem is that you have to wait a very long time for this permission – up to three years, and sometimes longer. In fact, the resort real estate market has turned into a makings market. This is due to the fact that the permit is issued not only for a specific buyer, but also for a specific property. In order to conclude a purchase and sale agreement, it is necessary to pay a deposit in the amount of at least 10% of the cost of housing. And then you just have to wait for permission. In recent years, thousands of applications have accumulated, which have been lying for more than three years. The Foreign Ministry pretends that it is checking something, but in fact the documents just lie dead weight.
It is clear that the seller is not very interested in waiting for several years, because prices on the market are rising. On the other hand, it is foreigners who are willing to pay more who buy resort real estate. Therefore, sellers simply "embed" the price into the contract, taking into account the future growth of the market. And buyers need to keep in mind that the seller can still terminate the contract if the fixed price seems too low to him. At the same time, he must legally pay a penalty, but with the rapid growth of the market, many go for it. In general, the bureaucratic red tape in Croatia is akin to ours. The only difference is that there are no such developed corruption "workarounds". For example, to obtain a permit, you need to collect a lot of references. By the time you receive the last one, the first one will have expired, and you can start all over again. If there is a typo in one of the certificates, the entire package of documents will be returned to its original position.
It's easier for legal entities, but more expensive
Fortunately, in Croatia, you can avoid all this red tape with permits by making a purchase for a legal entity. But this is a double-edged sword. It is no secret that real estate is bought in the Balkans, not least because of lower prices compared to Spain, France or Italy. And the purchase scheme for the company turns out to be too expensive if we are talking about purchasing an inexpensive object, because thisthe company must then be supported. It costs 5000-6000 euros to open a company, and you will have to pay from 3000 euros per year for its maintenance. But you still have to pay taxes and utility bills. So, although Croatia is a relatively cheap country, but in the end, you still can't save money.
The easiest way to acquire a "legal entity" is to create a limited liability company (its founders can be any person, regardless of citizenship). The participants of such a company are not responsible for its obligations. A legal address can be provided without actually renting the premises. Accountant services cost from 100 to 300 euros per month. At the same time, it is allowed to submit a "zero" accounting report indicating the absence of commercial activity for an unlimited time.
Low threshold and good prospects
It is generally believed that the prospects of a country's accession to the EU should be very encouraging for real estate buyers. In reality, this only affects the simplification of visa procedures when traveling to neighboring EU countries. Also, the country's European integration increases the value of real estate, which is important for those who buy it for speculative reasons. A striking example is neighboring Slovenia, where housing prices jumped sharply in the year after joining the EU. Today Croatia is closer to joining the EU – it may take place by 2010. The time frame for Montenegro has not yet been determined.
The threshold for entry into the market of Croatia and Montenegro is about 40,000 - 50,000 euros. Attractive properties on the primary market are usually offered at a price of 2,000 euros per 1 sq. m. Good apartments with full finishes on the first line from the sea can be purchased at a price of about 100,000 - 150,000 euros. The villa is for 400,000-600,000 euros. The range of secondary market offers is much wider. In the land market, everything depends on the location. For example, a plot of 10 acres 200 m from the sea can be bought for 60,000- 100,000 euros. But with good view characteristics and no problems with infrastructure, it can cost more than 200,000 -300,000 euros. Most Russians purchase new apartments or inexpensive secondary market facilities.
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