Over the past 2 years, real estate prices in Montenegro have increased significantly, mainly due to the influx of about 100 thousand foreigners. They were especially interested in apartments on the coast and in Podgorica. The average price per square meter in the capital has increased by almost 500 euros, so now you will have to pay almost 25,000 euros more for an apartment with an area of 50 squares than before 2019.
In addition to demand from non-residents, the rise in real estate prices was also influenced by inflation and disruptions in the construction materials market.
Today, the situation with construction materials has stabilized. Prices for some of them have even dropped. However, this decrease did not affect housing prices. They are still high due to the chronic lack of supply with active demand.
According to realtors, a significant drop in prices in 2024 is not expected, although a large rise is not expected. According to Mile Guich from the board of the Association of Builders, there is a slight cooling in the market ahead, a slowdown in price growth and a decrease in demand. "I think we have now reached a situation where prices will remain at least in the medium term, and if there is any correction, it will be moderate.The reason is still high demand, according to realtor Stefan Mishkovich.
Read more about whether foreigners continue to buy real estate in Montenegro, at what pace, and what are the forecasts, in our latest material about the results of the year in foreign markets.
Source: Investor