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Real Estate Montenegro - The Real Estate property market in Montenegro

Real Estate Montenegro - Find out more about Real Estate property market in Montenegro

In the past several years Montenegro has transformed itself from a must-see destination for estate insiders who knew a thing or two about Montenegro’s beaches and result culture, to become one of Europe’s hottest real estate markets. The explanation?
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In June of 2006 Montenegro gained its official status as a new and independent country.  This provided an attractive, lower-cost alternative to neighboring Mediterranean countries where affordable second homes with a sea view are hard to find. Not so in Montenegro! Many celebrities such as Michael Douglas and Catherine Zeta-Jones showed an interest in owning a property in Montenegro, and recently the Williams sisters of tennis fame have investigated several major real estate endeavors in this beautiful and brand-new country.

The following article helps to describe a bit of the history of real estate in Montenegro.  We’ll also briefly 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, a great starting point for your research. At the end of this article you will find real estate links all the must-have information, including a list of attorneys that can help you during the exciting buying process.
A short history of real estate investments in Montenegro

    * 70's and 80's
    * 90's
    * 2000's
    * Today
    * Legal Info
    * Real estate links

70's and 80's

The property market in Montenegro has always been very attractive, not only because of Montenegro’s natural beauty, majestic mountains or bright-sandy beaches. Even when Montenegro was a part of the former country of 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 in the 1970s and 1980s mainly came from Serbia, Bosnia and Herzegovina and Macedonia – all neighboring countries.

During the 1980s Montenegrin citizens who lived in Western Europe or in other republics increasingly began to return to Montenegro, buy property and build a home. Also at that time, 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.  There also came with them a renewed international interest in all that Montenegro had to offer for the discerning buyer.

This new influx of investment in the country was well met by the government that emphasized that all buildings in Montenegro should be built with adherence to the highest building standards and earthquake precautions.  These standards are still today much higher than in other Mediterranean countries. It is important to note that these standards apply especially to houses or buildings built or renovated after the earthquake of 1979, which forced the Montenegrin government and construction industry to adopt cutting-edge standards and building codes.
90's

During the first part of 1990's, the first non Montenegrin foreign real estate investors began to arrive and the market began to heat up. Developing very quickly, the process was only slowed by the political breakup of the former country of Yugoslavia. However, Montenegro was reasonably sheltered from those turbulent times and the property market continually developed at a steady pace because the demand for properties showed no significant drop.
2000's

Since 2000, serious purchasers from abroad began to arrive and they take an increasingly professional approach to the real estate market in Montenegro. By the end of 2001 the market seemed to have reached a tipping point and the Montenegrin real estate market exploded.  During 2002 the first foreign purchasers to arrive in significant numbers came mainly from Russia. Added to the drive to invest, a great number of British buyers and also those from Ireland and Norway entered the real estate market in Montenegro.

The market had finally been legitimized as a powerful force in Europe. During 2004 and 2005, many foreign property agencies mostly from England and Ireland began to do business in Montenegro and establish offices here. 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. The end result: as interest grows in this beautiful young country, so do the 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. Trends are hard to estimate, but experts agree that the rise in property prices should continue to become sharper.

Many interested purchasers in Montenegro’s real estate market 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. Due diligence is important and we suggest that you speak with a local attorney to help facilitate the process.

In recent years the biggest demand has been for (in no particular order): 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 but perhaps with some land to allow your family to stretch their legs. The main reasons for demand in these unique rural properties have been relatively lower prices when compared to sea-front properties and the potential for the development of farmhouse tourism.

This leads us to consider real estate in the interior of Montenegro.  The first foreign real estate seekers have now arrived to the country’s many interior locations, with the greatest interest being shown in 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, Lake Skadar and Cetinje, are of interest because of the low prices which are up to 200% lower than similar properties along the coast.  Skadar and Cetinje still offer superb locations, not far from the sea but also near the mountains and importantly, near the capital Podgorica with its convenience and nearby international airport!
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 manner as a local buyer. The property is registered in the name of the purchasers after the payment of a state tax of 2% of the property’s value.

However, there is 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.  This takes some coordinating and if you feel uncomfortable arranging the details yourself, we have a list of potential attorneys that can help you.

Therefore, in spite of the large boom in the property market, Montenegro is still considerably cheaper than other well-known locations in the Mediterranean. Prices are lower but they are rising steadily, so conditions ideal for investment.

Do you have property in Montenegro? If not, why wait? Our web site offers a variety of properties for sale.

Real Estate Montenegro - Find out more about Real Estate property market in Montenegro

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