Low prices of properties are causing a surge of interest interest for real estate market in Montenegro. Just in June of 2006 Montenegro became a new country and an attractive alternative to neighboring Mediterranean countries as an affordable place for foreigners' second homes with a sea view. Many celebrities such as Michael Douglas and Catherine Zeta-Jones showed an interest in owning a property in Montenegro.
The following article will describe a history of real estate in Montenegro, and explain some legal aspects of owning a property in Montenegro. Furthermore, montenegro.com offers a real estate section where you can browse the latest real estate offerings from our affiliates. At the end of this article you will find real estate links where for more info or attorneys that can help you during the buying process.
A short history of real estate investments in Montenegro
70's and 80's
The property market in Montenegro has always been very attractive. Even during the time of former Yugoslavia the property business on the Montenegrin coast was an enticing source of income for many individuals and state-owned companies of that era. Purchasers mainly came from Serbia, Bosnia and Herzegovina and Macedonia.
During the eighties Montenegrin citizens who lived in Western Europe or in other republics increasingly began to buy property and build. The first purchasers from abroad began to arrive from Germany, Switzerland, Austria and USA. Although they were of Montenegrin origin, these purchasers brought with them many new ideas in terms of architecture, building methods and decor as used in western countries.
All buildings in Montenegro were built with adherence to the high standards of earthquake precautions, which are much higher than in other Mediterranean countries. This applies especially to houses or buildings built or renovated after the earthquake of 1979. This tradition continues until this day.
90's
During the first part of 90's, the first non Montenegrin foreign real estate investors began to arrive. The market began to develop very quickly, but the breakup of Yugoslavia slowed down that process. Even in spite of that the property market continually developed, as the number of domestic buyers did not drop off.
2000's
Since 2000 the more serious purchasers from abroad began to arrive. At the end of 2001 the situation developed into what we have today: a veritable explosion of the property market in Montenegro. During 2002 the first foreign purchasers came mainly from Russia. A great number number of purchasers from Great Britain, Ireland and Norway grew constantly from year to year. During 2004 and 2005, many foreign property agencies mostly from England and Ireland began to do business in Montenegro. Foreign companies offered a large number of “ready to rent" investments especially in towns on the coast. Small colonies built by investors from various countries have sprung up, especially near the coast. As the interest of purchasers has grown, so have prices.
Today
In the past two years property prices have risen on average by 20% per year, and in some specific locations by more than 100% per year, and the trend is for the rise to become sharper.
Many interested purchasers have been surprised to find out that the majority of new buildings in attractive locations are sold even before building commences. Potential clients should do a proper research but also be ready to make a decision once they find a property they like as every house or building plot in Montenegro is quite unique.
In recent years the biggest demand has been for stone houses, built in the traditional style, plots of land located by the sea and newly-built apartments. There is an ever increasing demand for country-style properties on the coast, located near the sea. The main reason for this are the low prices and the potential for the development of farmhouse tourism.
At the same time the first purchasers have appeared in the interior of Montenegro. The greatest interest exists for the areas around Lake Skadar, the old Royal Capital of Cetinje, and the well-known winter holiday resorts in the North: Bjelasica, near Kolasin and Durmitor, at Zabljak. These first two places are of interest because of the low prices - up to 200% lower than along the coast, while they are in superb locations, not far from the sea, near the mountains, near the capital Podgorica, and surrounded by superb and unique natural beauty!
Legal info
Under the current legislation there are not too many restrictions on the purchase of property in Montenegro. Any foreign purchaser can become the owner of property (a house, flat or farm) in Montenegro, in the same way as the local people. The property is registered in the name of the purchasers, after the payment of a state tax of 2% of the valuation of the property. The one difference to note. When purchasing a land on which no building has been erected it is necessary to register a company which becomes the owner of the land until a property is built on it. Afterwards, ownership can be transferred to an individual by a simple procedure.
Montenegro, therefore, in spite of the large boom in the property market is still considerably cheaper than other well-known locations in the Mediterranean. Prices are lower and are rising steadily, conditions ideal for investment.
Do you have property in Montenegro? If not, why wait? Our web site offers a variety of properties for sale.
