Montenegro’s Real Estate Market: A Shift in Buyer Preferences
Montenegro’s Real Estate Market: with its stunning coastline, rich history, and growing popularity as a tourist destination, has seen a steady increase in interest from property buyers in recent years. However, understanding the nuances of the local real estate market can be challenging due to the subjective nature of sales data.
Asking any one real estate agent on property trend and forecast is not a straight forward objective answer. There is rather a subjective opinion based on personal experience of that agent or agency. When asked that question I try avoid sounding like a “know-it-all”, but rather offer answers related to what myself and colleagues have or are experiencing. In late 2023 and early 2024, there was a noticeable surge in demand for ready-to-move-in properties. Buyers were increasingly drawn to homes that required renovation and freshening up, to properties that are new and require minimal or no renovations, seeking a hassle-free ownership experience.
This trend can be attributed to several factors. One significant reason is the growing preference for modern, or fresh designs. Buyers are drawn to properties that reflect fresh taste on local architecture, current architectural styles, and offer a sense of freshness. Additionally, the prospect of extensive renovations can be daunting, with many buyers sharing stories of negative experiences with remodelling projects.
Another key factor influencing buyer behaviour is the limited availability of mortgages from local banks for foreign buyers. This has made payment plans offered by developers a particularly attractive option. By purchasing off-plan or during the construction phase, buyers can often secure more favourable terms and potentially benefit from significant price appreciation.
In fact, property values in Montenegro have been steadily rising, with an estimated annual increase of 10%. This presents a compelling opportunity for investors seeking capital growth. Furthermore, purchasing directly from a developer can often result in savings on transfer taxes, making the overall investment more cost-effective.
While the real estate market in Montenegro is dynamic and subject to fluctuations, the recent shift in buyer preferences towards ready-to-move-in properties and off-plan purchases is a notable trend. As the country continues to attract foreign investors and tourists, the demand for quality real estate is expected to remain strong.
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