Should You Invest?
Cheaper than other Adriatic states, but with more old world
charm, better year round weather, and a more sensitive attitude to
development than the Black Sea states, Montenegro has all the best
ingredients of the European sun and sea destinations. The property
market is booming and prices were expected to soar by more than 50%
in 2007. As a new market, entry prices are still low in many areas
offering good opportunities for capital appreciation. Montenegro is
definitely a hot spot for investment at the moment.
- Balance of low supply and high demand is keeping prices
high.
- Strong economic growth and a booming tourist industry.
- Entry prices are relatively low.
- EU funding improving infrastructure.
- More than €500 million has been channelled into new
developments and rebuilds.
- Reconstruction of Montenegro's tired Soviet era hotels.
- No restrictions on foreigners buying in Montenegro.
Rental Yields
Yields are high in the capital Podgorica, because rental units
are in short supply. In 2005 rents for small apartments in the
capital were between £67- £201 a month. Yields for Podgorica were
around 18%-24%. In coastal towns like Budva, Bar and Kotor, rents
are generally lower, because of a greater supply of rental
units.
Price History
Property prices have reportedly risen by 85% since 2004 and,
with a backdrop of strong economic growth and a booming tourist
industry, it was paredicted that the values of coastal property
would soar by more than 50% in 2007.
Average prices range from around £63,700 ($128,400) for a
one-bedroom apartment, £83,000 ($167,400) for a two-bedroom
apartment and £150,500 ($303,500) for a three-bedroom house. Houses
needing a significant degree of reconstruction cost between £20,000
($40,000) and £30,000 ($52,000) getting more expensive the closer
they get to the coast. New-build apartments start from a higher
base, costing upwards of £40,000 ($80,600).
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