Montenegro property market report 2013

The property market on the Montenegro coast is largely dependent on foreign buyers, who are buying holiday home, which they may choose to also rent out on holiday lets.

Newly built properties are more popular than traditional stone ones, but buyers are increasingly looking for high quality construction.

The Budva Riviera and Kotor Bay are the most popular areas, with Lustica and Tivat becoming increasingly sought after due to the proximity to Porto Montenegro and the Lustica Bay Development.

Country:

The majority of the buyers (88%) are still coming from Russia, and now 12% are coming from Western Europe (higher than last year). It seems that as the EU economies recover, there is more interest in Montenegro. The EU clients come mainly from UK, but are closely followed by the French and Norwegians.

Moreover, Montenegro is becoming an established market with increased awareness, stable growth in tourism and substantial investments, which appeals to buyers from the north of Europe.

Budgets:

Montenegro is still of main interest to middle class buyers with budgets from 100.000 to 150.000 EUR

11% of clients had a budget up to 50.000 EUR

15% from 50.000 EUR to 85.000 EUR

38% from 100.000 EUR to 150.000 EUR

17% from 200.000 EUR to 250.000 EUR

8% from 250.000 EUR to 300.000 EUR

5% approx. 400.000 EUR

3% approx. 500.000 EUR

3% approx. 1.000.000 EUR

Clients who have been interested in buying in Porto Montenegro or Lustica Bay usually approach the developers directly and are not interested in exploring other options so they do not contribute to these statistics.

Types of properties

Clients primarily look for properties that are within their budget, with type of property as a second consideration. There are many more apartments than houses to choose from for those with a budget of 150.000 EUR. Most buyers are looking for a holiday home so prefer apartments as they are much easier to maintain.

61% were looking for apartments; 7 out of 10 were looking for two bedroom apartment and 3 out of 10 for one bedroom apartments.

30% were looking for houses; 4 out of 10 were looking for houses up to €100K

9% were looking for plots

In summary, the best selling type of property this year have been  two bedroom apartments located in newly built developments, close to the sea, with sea views and within walking distance from shops and cafes, up to 150.000 EUR.

Ivana@montenegroprospects.com