Property market report 2014/15
Montenegro is slowly becoming a very desirable destination for high end buyers. It has been repeatedly dubbed as the new Monte Carlo, considered to be the new hot spot for deep pockets, and a new playground for the rich and, according to Forbes magazine, it is one of the top three destinations to travel to in 2015.
All major investment projects are under way. Porto Montenegro saw the opening of the five star hotel Regent Montenegro this year. The marina is full of expensive yachts and super yachts and properties in the complex are being sold at prices exceeding 7000 EUR/m2.
The Lustica Bay development is finishing the first phase of the luxurious town houses and apartments, the construction of the marina is underway and the building permit for the first golf course in Montenegro has been granted.
SOCAR is investing in a large project in Kumbor Porto Novi which will create the first One and Only Resort in Europe.
Looking longer term, Montenegro is poised to become one of the most popular destinations in Europe.
Excluding the large high end developments, the property market has remained steady for the last few years, mainly relying on buyers coming from Russia, but we have seen more and more interest from other countries in Europe, primarily the UK. The biggest impact on the property market in 2015 will be the economic crisis in Russia and the devaluation of the Russian currency. In 2014, the ruble devalued by almost 70% which is heavily influencing the buying power of Russian clients.
Regarding buyers’ budgets, the largest number of clients (43%) has up to 100.000 EUR to spend.
A further 25% of buyers has up to 150.000 EUR, which means that 7 out of 10 buyers are looking for properties worth up to 150.000 EUR.
Most of these buyers are looking to buy a one or two bedroom apartment with sea views and close to the beach. Buyers are interested in spending holidays in the property but increasingly they are also looking for an investment and rental yield.
In 2015 we expect to see fewer buyers from Russia but more from the rest of Europe. We also expect the new legislation concerning foreigners in Montenegro will help raise more interest in buying property. The new law will allow foreigners to get a temporary residency permit based on property ownership.
All information is based on our own data.