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Montenegrin real estate market today demonstrates phenomenal behavior. Instead of transformation «from quantity to quality» as many other developing real estate markets usually do, Montenegro offers growing number of properties for sale, while their quality also enhances with better construction technology and higher quality materials applied.

According to market experts, most of land plots acquired for construction in 2005-2008 have been engaged for the construction of new residential and tourist objects and most of them already host finalized high-quality developments. This leads to an increase in offer of high quality properties in Montenegrin market.

The local real estate market has improved not only in terms of construction quality. The rules of the game for the foreigners are also getting more and more transparent with the introduction of the institute of public notaries and simplification of obtaining of construction permits. This triggers the increase of interest from foreign investors to this beautiful European corner in recent couple of years.

Real estate prices in Montenegro could not be measured by single index or some other kind of weighted average – as the offer of real estate in this country is rather unique and diversified – due to location, distance from seaside and major infrastructure objects, views offered, etc.

Property’s geographic location is another important price formation factor. Traditionally the most expensive offers are located on Budvan Riviera (coastal area from Budva to Petrovac) and in Kotor bay (Tivat, Kotor, Herceg Novi, Lustica peninsula). These top locations are followed by Bar Riviera and southern part of Montenegrin coast (Ulcinj).

Another reason for existing significant price differences among otherwise similar objects is underlying information about neighborhood’s upcoming developments under the new spatial plan or urban development plan which might not be widely known to general public.

This is why for new market entrants it is important to work with locally experienced real estate agencies, which employ both local and foreign stuff and allow mixing the deep knowledge of the local market with international expertise and vision.

In order to give the reader the flavor of current average market prices we publish below the price indicators in each of the mostly demanded property categories in Montenegro:

1. A studio of 25-30 sq m could be acquired for EUR 40-50K on the secondary market and usually EUR 50-60K on the primary market (newly built)

2. An apartment of 50 sq meters will be priced starting from EUR 80K

3. Cottage or townhouse of 80 -100 sq meters with a land plot of about 200 sq m is priced around EUR 80-90K on the secondary market and starts from EUR 200K ob the primary market – in luxury residential complexes or cottage settlements

4. 2-3 bedroom villa with a land plot of 300 sq meters is available starting from EUR 250K.

Montenegro offers an advantage to investors in comparison with most other European destinations – it has lower costs on real estate turnover and maintenance. Secondary market real estate purchase will trigger a tax on real estate turnover of 3%. If property is newly built and is bought directly from the construction company, this tax is not payable.

Annual property tax on real estate ranges between 0,1% to 1% of property’s cadaster value. In practice property owners pay 0,3-0,4% of their property market value each year.

Utility bills are usually as follows:

• Garbage disposition costs 5-10 EUR per month
• Electricity and water supplies according to counters are 0,1EUR per kWh and 1,5EUR per cubic meter respectively

This means that average utility charges for an apartment of 80 sq m will sum up to around EUR50 during the summer season and EUR80-90 during the winter, given a constant stay of the owner in the apartment.