Montenegro Prospects has conducted an extensive survey on the impact of the COVID-19 pandemic on the property market in Montenegro. The survey was conducted by more than 1.500 of our clients (sellers and potential buyers) from EU countries, UK, Russia and the region. The results are very interesting:
- The majority of our clients believe it will take from 12 to 24 months for the market to recover.
- The sellers expect property prices to drop by up to 10%
- The buyers expect prices to drop between 20% to 30%
- Expectations of the rental prices vary a lot: 30% of our clients think they will stay the same, 30% think they will drop from 20% - 30%, while 20% think that the rentals will go down between 30% and 50%
Our clients also believe that buyer’s requirements will change as well:
- Properties with outside space, gardens and courtyards will be much more in demand.
- There will be less demand for properties in the middle price range, but high-end, premium properties and inexpensive properties will continue to sell.
- Countries with a developed health system will be more interesting for investors.
- More buyers will be looking to buy properties locally, rather than overseas.
- Less densely populated areas will be of interest.
- Buyers will want more indoors space and larger plots.
- Rental potential and property management will become even more important.
- Smaller and flexible markets like Montenegro will continue to be of interest for the foreign investors
- Montenegro’s successful management of the COVID-19 pandemic will positively affect the image of the country.
In summary, buyers and sellers have very different expectations of the effect of the pandemic on property prices. Most agree that houses with gardens, rural and generally properties with outside space will become more popular. The pandemic will have the biggest impact on overseas sales, because of travel restrictions and lifestyle changes. However, there is an overriding belief that Montenegro will remain an interesting destination for foreign investors.