MONTENEGRO: INTRODUCTION

The real estate market in Montenegro is new and emerging rapidly.  The emerging of the real estate market is the outcome of privatisation, restitution and a rapid growth in the tourism industry.

Montenegro has emerged as one of the latest and yet unspoilt destinations in the Mediterranean attracting both tourists and property investors.  The World Tourism Organisation (WTO) confirmed that Montenegro had the fastest tourism growth worldwide in 2006 and again in 2007, and this trend is expected to continue over the next 5 years. Similar to Croatia in terms of coastal geography and a relaxed way of life, Montenegro has benefited from Croatia’s huge and rapid success as a place to visit and acquire a property.

The wealth of potential in the market stems from the fact that real estate in Montenegro is materially undervalued and growing in demand from those seeking a luxury holiday home in the sun.  Immediate gains can be realised from the rental of suitable coastal properties to the fledgling but burgeoning tourism market, with longer term rental income likely from well appointed and located apartments in the main towns in this tiny gem of a European country.  In the medium to longer term the property market in Montenegro is likely to reward a patient investor with substantial capital growth accompanied with a boost by inward foreign direct investment.

Unique selling points in Montenegro real estate market is the picturesque Montenegrin coast accompanied with pleasant year-round climate and unspoilt natural beauty.  The Bay of Boka, which is considered to be the most attractive part of the Montenegrin coast and voted as one of the top 10 most beautiful bays in the world, hosts celebrities and the super high net worth individuals amongst the new property owners.  This has generated a healthy amount of interest in the region and has put Montenegro on the list of ‘hotspots’ for residential real estate, particularly at the luxury end of the market.