Big changes
But not so long ago there were times when it was possible to buy a large house with a magnificent view of the sea in Montenegro for only a few tens of thousands of euros. What happened? It is quite easy to answer this question – the Russians just arrived. At first, just to relax and admire the local beauties. Then, having appreciated the proximity of the language and mentality of Montenegrins and Russians, many of the tourists decided that life in such a paradise must be great. In addition, you do not need a visa to travel to the country, and local laws do everything to protect the owner of the property from numerous troubles. And so at the beginning of the new century, Russians began to buy up Montenegrin land in pieces, large and small, en masse, and the locals instantly remembered the Russian language, which they knew well in socialist times, but forgot a little in the turbulent 1990s.
To say that real estate in Montenegro has become a huge success is to say nothing. Therefore, it is not surprising that prices have started to soar. Slowly at first, and then higher and higher. Interestingly, the appetites of buyers from Russia began to grow in proportion to prices. Now Russians do not have a great desire to buy houses whose cost is less than 200,000 euros, which is different from the economical, even tight-fisted British. And it's not about the so-called "coolness". Our compatriots have long been unwilling to buy "at random". Their requirements for the quality of the project, building materials and decoration of houses have increased, and there are practically no people willing to buy a "hut on chicken legs" now.
The level of awareness of current real estate buyers has become very high, and therefore low-budget buildings that could have been bought a couple of years ago have naturally disappeared from the market. "The buyer already knows that this region is earthquake–prone," says Mikhail Shabalin, who has led many development projects in Montenegro, "and therefore requires that the house be frame, the walls be built with thermal insulation, and the blocks be brick. Russian buyers also realized that local architects have a slightly different concept of comfort. And this is just the beginning of changes in the market. By the way, now, in order to obtain a construction permit, you need to undergo such a number of examinations that it is comparable to the Moscow level of construction preparation."
The motherland is not for sale!
Everyone knows the famous phrase of Mark Twain – "Buy land – this product is no longer produced!". Montenegrins have understood the meaning of these words very well and are making full use of the knowledge they have gained. There are still many undeveloped places on the coast of Montenegro, but the trouble is that there is not always a free road to them – part of the existing passage can easily belong to someone from the locals. You can buy plots from ten owners, and the eleventh, who owns the main road to the neighboring square meters, will refuse. And buying the previous ten seats will be useless.
"It's about the notorious patriarchal mentality of the Montenegrins," says Mikhail Shabalin. – For them, the earth is everything. If it is there, then there will be food and money. The spiritual value of the land is also important to them: they say that my grandfather and father lived here, which means that I will live here too. In order for a person to give up all this, either he must need money very much, or the amount for which he will give a piece of the history of his family must be very high."
One more nuance. There are sellers who are afraid to brag about the real price of their sale after the sale, as relatives or neighbors can bring down a barrage of criticism and ridicule. Therefore, it happens that after receiving, for example, 100,000 euros, a Montenegrin announces that he sold his property for 200,000. And neighbors, acquaintances and onlookers who also have real estate left, think that for their modest house, "Abramovich's relatives", arriving by dozens of planes every day in Montenegro, will give the same amount. It is not surprising that the price spread in the real estate market of Montenegro is exceptionally high.
The Adriatic surprises
Let's start with secondary housing. On average, in cities such as Ulcinj and Bar, you can buy an old house with an area of 100 square meters. m for about 50,000 euros, that is, 500 euros per 1 sq. m. But this is the lowest bar. There are, of course, cases when the grandmother-seller, not focusing on prices or wanting to make a deal faster, puts her property up for sale at an undervalued price. However, the realtors she will contact will immediately raise the price to the real market. The fact that someone will have the resulting difference should not confuse the buyer. After all, the ethical side of the matter does not concern him in any way – he made a purchase at a real price, and grandma got what she wanted.
Returning to the offers on the secondary market, we note that a good house near the sea will cost from 1000 euros per 1 sq. m – these are the local realities. The closer to the main resort centers – Budva and Kotor – the higher the price. For example, apartments in Budva with an area of 50 square meters, located a few minutes from the sea, will cost the buyer 115,000 euros. Such money is asked for an apartment with a bedroom, a living room, a kitchen and a loggia.
The offers on the primary market make your eyes run away. Both club–type settlements, and individual exclusive buildings, and reliable security - all this is available. For example, apartments of up to 100 square meters are currently being sold in Petrovac and Becici. m and cost from 2500 euros per 1 sq. m. For the same money, you can buy a new house, but its decoration will be easier, and the location may not be so enviable. Actually, even a large house with a plot and high-quality interior decoration can be bought for 300,000 euros, you only need to search hard.
Well, as for the upper price limit, it is virtually absent. Announcements that a house for sale in the Montenegrin Adriatic for 1.5 million euros will not surprise anyone anymore. Only the architects themselves are surprised: they are building on plots of 500 square meters. m of the house is the same area as the territory itself. Sometimes there are more than ten bathrooms and 22 terraces for three bedrooms! It turns out that the phrase "you can't understand Russia with your mind" can sometimes be applied to Montenegro!
And you also need to remember that sometimes the price may depend on the language in which the communication between the seller and the buyer takes place. If a complete understanding cannot be achieved, then the price will certainly be higher than what could be considered fair. Therefore, the presence of an interpreter in negotiations is very important.
A young attractive state
The most important question for investors is what will happen to prices next. Both in Russia and Montenegro, experts are confident that the value of real estate here has not yet reached its limits. "The main purchases are made mainly by Muscovites, there are much fewer investors from St. Petersburg, and there are simply no interested persons from the province," says Mikhail Shabalin. The dynamics of the Montenegrin market looks very confident against the background of falling prices for real estate in the capital, and it is likely that the flow of investments from Russia will only increase.
We should not forget that the official Montenegrin currency is the euro, and it is constantly strengthening against the dollar and the ruble. Even a small increase in the price in euros looks more serious in other currencies. But Montenegro is the only country in Eastern Europe where the euro is considered the national currency, so it should not be so surprising that the market level is growing so noticeably.
The investment attractiveness of Montenegro in the near future is very high. The excellent future of the country is indirectly indicated by the fact that land plots have already been reserved for Sheraton and Hilton companies, which will soon build their hotels there. Of course, those who ended up on the Adriatic at least a couple of years ago won the most. But not all houses and plots have been sold, and prices have not been raised for all. There is still an opportunity to make a worthwhile purchase, the fruits of which will pleasantly surprise you in a few years. But you should hurry up, because in the ruling circles of Montenegro, the issue of reviewing legislation and complicating the process of buying real estate is regularly raised.
Do not discount the fact that the country is on the right path to the European Union. Local laws are created in such a way that, having bought a property and received a temporary residence permit for a year, then you can safely count on becoming a full-fledged local resident. The annual extension of a residence permit is likely to lead to a permanent residence permit, and then citizenship is not far away. And the citizenship of a country that is part of the European Union (let it be in the future) is worth a lot. The youngest state of the Old World has many advantages.
As they say, Montenegro is one big construction site where you can buy a house at one price today and sell it at another tomorrow and earn good moneymoney. Perhaps this is still true, but only for those who have good start-up capital and who are ready to hurry.
