Evaluation of second homes in Montenegro

There are three basic factors that we need to consider when talking about the value of properties on the coast of Montenegro

1.       Location
2.       State of the property
3.       State of the market

Traditionally location is considered the most important factor in determining the value of real estate worldwide. In our market the proximity of the sea or beach has the biggest influence. Usually the closer the property is to the water the higher the price – hence the most expensive properties are those on the front line.
However, its proximity to the centre of the town, ie, proximity to shops, restaurants, market, promenade etc. is also very important. Ideally located property will be only a short walk from the shops and an even shorter one from the sea.
Finally, last but not least is the sea view. A property without a sea view has a considerably lower price compared to a property of the same size and in the same location but with the all important views.

Condition and size of the property – the basic value of the property is usually calculated per sq m of the living area, ie more sq m the higher the price.  In addition to the size, the quality of the build and the finish are also very important. The architecture of the property, a good layout, lots of light, high quality materials, a landscaped garden, etc. add a great deal to the general feel of the place and directly influence the price of the property. Of course the personal taste of the buyer is the key determining factor here, but regardless of the design, the quality of construction or renovation is always easy to recognize.

State of the market – demand is an extremely important element when talking about the value of holiday homes. Favourable economic climate, good flight connections, visa regime, tourism potential, availability of finance, and above all the climate – determine the popularity of a destination with overseas property buyers. This market almost completely relies on foreign buyers and their interest directly influences the value of the property. It also determines the value of different  types of property – whether you will be selling newly built apartments in complexes with pools, or a stone cottage with a view

More on this topic: Property evaluations – Overview into the the current market conditions