Montenegro Property Investment For Sale

"Its bewitchingly stunning scenery has created a growing tourist industry”

One of the smallest countries in Europe but with truly bewitchingly stunning scenery: vertiginous mountains skirting around deep lakes; elegant national heritage sited pale-walled cities and mile upon mile of golden beaches; Montenegro has emerged from the split with Serbia as a popular fast growing holiday destination.

Best described at a country in transition to a having market economy, the state sector still remains a dominant area and many changes are still needed although much has been achieved including privatisation of most of its financial sector and its large aluminium complex which is still the key industry in Montenegro.  The economy is heavily reliant on tourism and it is in this area that there has been the largest direct foreign investment.

Whilst Montenegro is showing progress in its political stability, it still retains some of the scars of its troubled past. Land is not always registered officially and has often been in the same family for generations, meaning claims over land can be tangled for new owners.  There has been widespread corruption and organised crime which now are being tackled by the government and unemployment and regional disparities have hindered growth, particularly since the economy and real estate market was badly hit by the international financial crisis and euro-zone problems.  Montenegro also suffers from a very poor infrastructure that makes reaching the less popular and developed areas virtually impossible at times.

Geography

The Republic of Montenegro is a small state in the southeast of Europe. Located in the south-west Balkans, it borders Croatia to the west, Bosnia to the north-west, Serbia to the north-east and Albania to the south-east. It has 293.5 km of coastline on the Adriatic Sea, which includes 52 km of beaches. Montenegro's administrative capital and largest city is Podgorica, while the old royal capital or seat to the throne is Cetinje.

The name 'Montenegro' means 'black mountain' and probably derives from the dark forests and deep canyons that line the country's limestone mountain areas. These mountains comprise some of the most rugged terrain in Europe and average more than 2,000 metres in height. The lowlands are made up of fertile plains and river valleys, with a narrow coastal plain. The beautiful Adriatic coastline is made up of beaches, bays and coves, while the UNESCO protected Bay of Kotor is Europe's most southern Fjord.

Government

The Republic of Montenegro is a relatively state that only formally declared its independence from Serbia in 2006. 

The Montenegrin Parliament appoints the Prime Minister and all justices of courts, passes all laws and performs other duties. The parliament can pass a vote of no-confidence on the Government if supported by a majority of the members.

Language

Montenegrin (official), Serbian (Ijekavian dialect), Bosnian, Albanian, Croatian.

Standard of Living

The standard of living in Montenegro is still not as high as much of Europe, but it is improving. Unemployment remains a key problem, though recently there have been great improvements. With continued FDI and GDP growth per capita, income and employment should rise.

SInce splitting from Serbia, Montenegro has moved quickly to a market economy  based largely on the service sector.  Tourism is an important contributor to the Montenegro economy and is considered their greatest asset and the government is making many new infrastructure improvments to facilitate this growth.   Unemployment remains a key problem, though it has improved over recent years.

Key Industries:

The leading export partners for Montenegro are Switzerland, Italy and Bosnia and Herzegovina. Key industries outside the service sector and tourism are aluminum and steel production and agricultural processing.

Kotor

Kotor is a Unesco World Heritage Site and a medieval fortress city, which makes it more than just the usual beachfront resort. Settled next to a beautiful bay and surrounded by mountain ranges, the town offers stunning views and quaint cultural attractions in its churches and cathedral, while the Maritime museum also emphasises the naval heritage of the town. The area has already witnessed substantial investment and prices in this area are generally well above the national average, and comparable to the most expensive areas in Croatia. Although the market remains popular, it has more appeal amongst those looking for holiday homes than amongst dedicated property investors.

Coastal areas south of Kotor, including Herceg-Novi, Budva and Bar

In coastal areas south of Kotor, property prices are considerably lower. In general, opportunities for capital appreciation are now better in the south or inland at mountain and lake resorts although any properties near beaches like Buljarica or Becici are also likely to see a healthy price rise. Another good bet is Ulcinj, which has 8 miles of beach and prices which continue to offer good value.

Positioned near to the classified beauty spot of the Bay of Boka Kotorska and the ski slopes of Orjen, Herceg-Novi is increasing in its popularity as a tourist destination. Budva and Bar are also emerging as popular resorts and investment hubs. Budva is a walled town placed just outside Sveti Stefan surrounded by 24 miles of beach and thanks to its pale stone town walls, is frequently compared to Dubrovnik. The island of Sv Nikola lies only a kilometre from Budva and has become a great excursion site for tourists. The area around Budva and Sveti Stefan is one of the most intense areas for development throughout Montenegro. 

Tivat

The Tivat Riviera is also tipped as a hotspot with stunning scenery and vegetation. A place of interest is Ostrvo Cvijeca known as the Island of Flowers. Property prices are set to rise here significantly.

Inland areas

There are increasing numbers of projects available in other regions of Montenegro, including the capital Podgorica. This bustling city is the commercial centre of Montenegro and is positioned amongst five different rivers. After significant damage in WW2 much of the city has modern architecture and a well developed transport infrastructure. The area around Skadar Lake is also becoming increasingly popular. As the largest lake in the Balkan Peninsula and a renowed conservation reserve to wildfowl, it is an ideal location for those who love country pursuits such as walking, hiking, bird watching and fishing. 

Finally, for something different, Cetinje is the traditional capital and cultural centre of Montenegro. Viewed as an excellent area for the development of tourism, it is now a university town and property can be picked up cheaply and rented to students.