Montenegro is a country with a population of 623,000, as of 2013. It became independent in 2006, after 55% of voters voted for the dissolution of the Union of Serbia and Montenegro in a referendum. The country officially applied for EU membership in December 2008. However, formal negotiations on EU membership began only in June 2012. Montenegro became a member of the World Trade Organization in April 2012.
After the partition of Yugoslavia and related wars, Montenegro lost most of its visitors overnight. And although it did not suffer as much damage as other countries in the region, Montenegro's economy was seriously affected.
Montenegro's tourism industry is booming. In 2013, the total number of tourists arriving in the country increased by 3.6% compared to 2012. The coastal areas of Montenegro accounted for about 90.4% of all tourist arrivals last year.
Nevertheless, the problem of high unemployment in the country remains. According to the Statistical Bureau of Montenegro in the first quarter of 2014, the overall unemployment rate in the country was 19.1%, which is less than 19.5% in 2013 and 19.7% in 2012. The economy is expected to grow by 2.8% this year and by another 2.9% by 2015.
On the coast of Montenegro, there are wide opportunities to choose a place of purchase due to its unique natural diversity: from mountains literally growing out of the sea in the Bay of Boko Kotor to the kilometers-long sandy beaches of the Ulcinj Riviera.
Market dynamics
Since the end of 2008, as in most European countries, the market of real estate in Montenegro began a period of stagnation and falling prices. Prices for secondary housing have fallen by 30% and the construction of large projects has been suspended. As a result, prices in the primary market practically did not fall, and the overall price level did not fall to a critical level.
Active construction on the coast of Montenegro began in late 2009 – early 2010. It was resort real estate, apartment and villa complexes, at the European level. In late 2010 and early 2011, there was a revival of the market, and prices began to rise. By the beginning of 2012, they reached the pre-crisis level, exceeding 2,000 euros per square meter (2112 euros per square meter in Budva).
However, the recovery in the market was followed by a downturn. In the second quarter of 2012, real estate in new buildings fell in price by 16.4% compared to the same period in the previous year, and by almost 13% compared to the first quarter of 2012. By the end of the year, the average value of real estate in the primary market decreased by 13.5% compared to the same period in 2011. At the same time, sales continued to grow – by the end of the year, the growth was 58.6% compared to 2011.
At the beginning of 2013, real estate on the primary market decreased in price by 16.6% compared to the same period in 2014. The average price per sq.m in Budva was 1,972 euros. However, in the second quarter, the cost of real estate in the primary market increased by 35.5%, in Budva it averaged 2,153 euros per sq.m. In the third quarter of 2013, prices in the primary market increased by 15.3%. Foreign demand continued to grow, sales increased by 23.5% compared to the previous year. In the fourth quarter, however, demand slowed to 6.8%. Due to the decline in the secondary market, the overall price level continued to decline.
At the beginning of 2014, there were no drastic changes in the real estate market in Montenegro. In the second quarter, the average price in the primary market decreased by 6.5% to 1,147 euros per sq.m. In Budva, the average price was 1,890 euros per sq.m, in Podgorica – 1098 euros per sq.m, in the Bar – 1024 euros per sq.m.
In 2014, the situation on the real estate market in Montenegro can be described as a "buyer's market". Owners who are really interested in selling are forced to significantly reduce the initially announced price.
Price growth in Montenegro is not expected yet. The prices for old mansions and ruins of the first line of the sea in the Bay of Kotor are the least reduced. In 2014, there was a noticeable increase in demand from Ukrainian buyers, who, especially from the western regions of Ukraine, are close to Montenegro by car. The commissioning of new facilities in the new construction market has slowed down somewhat.
The interesting trends of the current year include an increase in sales of real estate in the elite segment. Prices in this segment have also decreased, but the number of transactions has increased. The largest volume of transactions falls on the segment of inexpensive real estate: apartments in the budget 40 000 – 80 000 euro, land plots 30 000 – 100 000 Euro, houses in the range 80 000 – 150 000 euros. There has also been a significant increase in interest from large investors. According to this indicator, in particular, it is possible to judge the approach of the market "bottom".
It should be noted that there have been quite a lot of Russians among the developers in the Montenegrin market in the last couple of years. Every fifth facility was built with Russian capital.
The demand of Russians
There are no restrictions on the purchase of real estate by foreigners in the country, with the exception of land plots, which can only be purchased through a legal entity. Foreign investors are attracted to the regions of the Adriatic coast. In particular, St. Stephen Island and the coastal city of Budva are extremely popular among Russians. The demand for real estate from buyers from Western Europe will grow over the coming years, after Ryanair launches several new flights from different European countries (for example, from Brussels, Milan, Barcelona, London, Oslo and Stockholm) to Montenegro.
Russians are the main buyers of real estate in Montenegro among foreigners. Before the onset of the crisis in 2007-2008, Russians mainly bought real estate on the secondary market. Since the beginning of the crisis, there has been a boom in the demand of Russians for resort real estate in Montenegro due to the beginning of active construction of high-quality resort real estate.
Due to the geographical features of Montenegro (mountains block the territory from the coast, limiting further construction inland), the Russians quickly bought up real estate on the coast, as a result of which the supply was limited.
In 2015, real estate market professionals predict a decline in Russian demand due to the deterioration of the political and economic situation in the country. The situation may change in the event of the adoption of a new law on the issuance of a residence permit for the purchase of real estate without price restrictions. This bill is already being developed by members of Parliament.
Nevertheless, demand from Russians remains stable for many reasons. This is facilitated by the development of infrastructure, the appearance of very inexpensive air tickets on the market, and the preservation of a high quality of life at relatively low prices.
The possibility of obtaining a residence permit when buying real estate had a significant impact on the demand of Russians. If you do not have a residence permit in the country, you can also live all year round, with the only condition - to cross the border once a month (it is convenient to do this when traveling to neighboring visa-free Serbia or Bosnia and Herzegovina).
Regions
The coast of Montenegro offers a wide range of options for choosing a place to buy due to its natural diversity: from the mountains in the Bay of Kotor to the kilometers-long sandy beaches of the Ulcinj Riviera.
Some buyers, when deciding on the place of purchase, pay attention to the distance to the airports in Tivat and Podgorica. Many also take into account the proximity and quality of the beaches: sandy in the Budva and Ulcinj Riviera, pebble and small-pebble in the Bar Riviera and concrete in the Bay of Kotor.
If earlier the focus of buyers was concentrated on the Budva Riviera, now it is shifting towards less advertised regions: towards The Boko Kotor Bay and the Lustica Peninsula. The largest investment projects in Montenegro are currently being implemented here. At the same time, the building regulations remain relevant here, assuming a low density of buildings and leaving large areas "green". The average cost of real estate is typically higher on the Budva Riviera and in the Bay of Kotor in comparison with the Barskaya and Ulcinj Riviera. Budva Riviera The coast of the Budva Riviera is located along the Adriatic Sea with an approximate length of 35 km, of which 12 km are beaches. The climate here is mild, with characteristic warm summers and mild winters. There are about 20 beaches and the most popular resorts in Montenegro: Budva, Milocer, Petrovac, Przno, Becici, Rafailovici, as well as the world-famous St. Stephen. Almost all beaches in this region are small-pebbled and pebbly. The tourist season on the Budva Riviera lasts from May tooctober. Budva and the nearby suburbs of Becici and Rafailovici attract the most active buyers of real estate, while St. Stephen is considered the most prestigious resort in Montenegro. The cost of real estate and accommodation here is the highest. A small resort village Becici 3 km from Budva and 13 km from Tivat airport. One of the best beaches in the country is located here. At a distance of 1.5 km from Becici, at the eastern end of the long beach, there is another popular resort Rafailovici. The development of the village is very dense, mainly one- and two-storey buildings with open terraces. There are many fish restaurants on the waterfront. The resort village of St. Stephen became a popular resort between the 1960s and 1980s, when it was regularly visited by celebrities such as Orson Welles, Elizabeth Taylor, Sophia Loren, Princess Margaret, Carlo Ponti, Ingemar Stenmark and Kirk Douglas. These places belonged to the royal family of Montenegro at the beginning of the last century, and one of the most beautiful local beaches is called "Queen's Beach". Next to the village there is an island of the same name, connected to the mainland by an artificial isthmus. The walls of the medieval fortress and the restored old town, consisting of several dozen one-story houses, have been preserved on the island. Due to the proximity to the island, where many celebrities vacationed, the village has turned into a prestigious resort over several decades. The village itself is located at some distance from the shore. The average price in St. Stephen is 5,000 euros per sq. m., which is due, rather, to the prestige of the place, rather than the quality of the property. Budva The city of Budva is rightfully considered the tourist capital of Montenegro, which is visited by about half a million tourists annually. It is the fastest growing city on the Montenegrin coast. This is one of the warmest places in the Adriatic, while the summer is not hot here, with an average temperature of about +23 °C. Budva, as the most visited destination in Montenegro, is sometimes called the "Montenegrin Miami", due to the vibrant nightlife during the tourist season. For those who prefer a quiet and peaceful holiday, Becici, Rafailovici and St. Stephen are more suitable. Tivat International Airport is located a few kilometers from Budva. Regular flights departing from this airport connect Montenegro with Moscow, and charter flights - with St. Petersburg, Yekaterinburg, Samara, Perm, Nizhny Novgorod, Tyumen, Kiev, Kharkov, Odessa, Donetsk, Lviv, Minsk. Thanks to its convenient location and well-developed infrastructure, Budva can offer year-round accommodation. Citizens of European countries and Russia live in the city permanently. The average price in Budva in the 2nd quarter of 2014 was 1,890 euros per square meter, which is much higher than, for example, in the capital Podgorica, where one square meter of real estate costs an average of 1,098. Apartments are typical for Budva, but there are piece versions of houses on average from 250,000-300,000 euro and above. Barskaya Riviera The Bar Riviera is located in the southeastern part of Montenegro on an area of about 500 square kilometers between the Adriatic Sea and Lake Skadar, the largest on the Balkan Peninsula. The climate here is Mediterranean, due to the mountain ranges, the region is characterized by warm, wet weather in summer. The average monthly temperature in July is +23.5°C, and in January +8.3°C. The swimming season here lasts from mid-May to mid-October, the water temperature reaches +26°C. The bar is convenient for permanent residence, has a developed infrastructure. Prices for real estate objects comparable to Budva in terms of area and quality are more democratic here. Although recently, due to the growing interest in the real estate of the Bar, there has been a tendency to level prices. In addition to the Bar, such resorts of the Bar Riviera as The bar is located 41 km from Podgorica Airport and 58 km from Tivat Airport. These international airports accept scheduled and charter flights from the largest cities in Western Europe, as well as from Moscow, St. Petersburg and Yekaterinburg. The flight duration from Moscow is about 3 hours. A ferry service connects Bar with the Italian cities of Ancona and Bari, and a railway connection with Belgrade. From June to September, you can get to Bar by rail from Moscow, traveling in a non-stop trailer car will take about two and a half days. Currently, there is a tendency for real estate prices to equalize on the Barskaya Riviera with prices on the Budva Riviera and in the Boko Kotor Bay. In the Bar, the average price is 1024 euros per sq. m. Recently, many houses in Sutomore with a square footage of 100-150 sq.m have also fallen to the level of 140,000 euros. Now there are as many, if not more, buyers of real estate from Russia on the Barskaya Riviera than, for example, in tourist Budva. Buyers are paying more and more attention to the quality of construction, the availability of connection to urban electricity and water supply networks, species characteristics and convenience of living. Ulcinj Riviera is the southernmost and warmest coastal region of Montenegro. The coast is characterized by typical Mediterranean vegetation – cypresses and olive trees grow along the coast. Ulcinj is the southernmost city of Montenegro, located near the border with Albania. The bathing season lasts from April to November, in summer the water temperature often exceeds +26°C. The beaches are mostly sandy. Ada Bojana is a small island 25 km from Ulcinj. The island is located at the southernmost point of Montenegro, in the river delta of the Bojana River, which separates it from the border with Albania. Krutche is a small village with wild, pebble beaches and a clear, transparent sea. The coast here is usually rocky. The Ulcinj Riviera is not one of the most popular destinations in Montenegro. Although in Good Waters they often buy high-quality villas at a price of up to 100,000-150,000 euros. Kotor Bay is rightfully considered the most picturesque place on the Montenegrin coast. This place is surrounded by high mountains. Due to its geographical location, the water temperature here is about 3-5 degrees higher than in other regions. There are many ancient towns and small towns on the shore, including Kotor, Perasta, Risana, Igalo, Herceg Novi and Tivat. Many of them are included in the UNESCO World Heritage Site. The most popular of them is the city of Kotor. It is a city of fish restaurants and shops typical for young Mediterranean countries. Tivat Airport is one of the two international airports in Montenegro. Direct scheduled flights are operated by Aeroflot, S7, Ural Airlines, Montenegro Airlines and Moskovia. Tivat is also home to the country's largest yacht marina. Housing prices in the Bay of Kotor are not the lowest. This is the second most popular destination among foreign buyers of real estate in the country. Real estate of the lowest price category (old panel houses) costs about 1300 - 1500 euros per sq.m. High-quality secondary housing costs an average of 1,700 - 2,500 euros per sq.m. Luxury new buildings cost from 3,000 euros per sq.m. The most popular resort here is Herceg Novi. Among the offers, the most popular are apartments with 1 bedroom up to 100,000 euros or 2 bedrooms up to 120 000 - 130 000 , as well as houses up to 200,000 euros. In each district there are premium complexes with swimming pools, where prices average from 2000 euros per square meter, and there are ordinary low-rise buildings, where the price can be 1300 euros per square meter. The editorial board of the portal thanks Elena Nevskaya (Adrionika), Bogdan Michunovich (The Best Way) and Vladimir Kalashnikov (Chernogoria4you) for your help in the preparation of the material. HomesOverseas.ru
The historical center – the Old Town, surrounded by fortified walls, for four centuries, until the end of the XVIII century, belonged to the Venetians, which left its mark on the architecture of the city. Not far from the Old Town there are the most picturesque and popular beaches of this region – Mogren and the one and a half kilometer Slavyansky beach.
Ulcinj Riviera
Kotor Bay
