According to data from real estate agencies that Pobjeda contacted, apartment prices in Podgorica have increased by 13% this year compared to last year, or by 240 euros per square meter. On the Montenegrin coast, prices have risen by 2 to 5%, depending on the municipality. Agency owners have told our editorial team that a price decrease is unlikely next year.
Stefan Mišković, the owner of the Multitask real estate agency, assessed the real estate market situation in Montenegro, especially in Podgorica, as largely unchanged this year, similar to the conditions of last year. The market is characterized by a shortage of supply and strong demand for apartments.
High demand
“The demand for apartment purchases is high, and this segment of the market has been quite satisfactory for us for some time, but the supply of the sought-after apartments is limited, and there is also a noticeable lack of collaboration with investors, which makes our position in the market more difficult,” Mišković told Pobjeda.
In Podgorica, apartment prices range from 1,700 euros per square meter for smaller properties in areas with poorer infrastructure to 3,500 euros per square meter for higher-quality buildings located in the city center or on more desirable locations.
Mišković also pointed out that, according to Monstat data for the third quarter of this year, the average price of a square meter in new construction across Montenegro was 1,854 euros, and in the capital, 1,824 euros.
“These are roughly the prices that are currently on the market, with the note that most of these apartments are sold in the early stages of construction, and there are very few move-in ready new apartments on the market, which reach prices higher than the average,” Mišković explained. “In Podgorica, the prices range from 1,700 euros per square meter for some smaller properties in areas with poor infrastructure to 3,500 euros per square meter for high-quality buildings in prime locations.”
According to his data, the price in Podgorica has increased by 240 euros per square meter, or 13%, compared to last year’s average, and by about 3% compared to the second quarter of this year.
He emphasized that the price increase is primarily due to the limited supply of apartments in relation to demand.
“Our forecast is that prices will certainly not drop in the next 12 months, considering the current level of demand and supply. Even if the supply significantly increases and demand decreases, the market will not change so quickly because a decline in activity needs to happen first, which would eventually lead to a decrease in apartment prices in the medium term,” Mišković explained.
He added that various factors influence demand, such as global processes, political stability, and the level of foreign direct investment, which can change rapidly, making it difficult to predict the market. However, in general, he expects the current market conditions to remain stable in the near future.
Decline in sales on the coast
Ivan Dašić, executive director of the Montenegro Prospect real estate agency, discussed the real estate market on the Montenegrin coast, noting that the demand for properties there is similar to last year in terms of inquiries. “However, due to increased marketing efforts, it can be said that nominal interest is about 5% lower, and actual sales are down by about 10%,” said Dašić.
He attributed the lower sales volume to high interest rates, global political instability, and a speculative approach by potential buyers. Buyers are closely following the market and waiting for “good offers,” he explained.
The price of a square meter in Kotor starts at 3,000 euros and can go higher, while in the Old Town, it’s rare to find a price below 5,000 euros per square meter. In Tivat, the price is around 3,700 euros per square meter, in Budva around 3,000 euros, in Herceg Novi 2,850 euros, and in Bar 2,700 euros per square meter.
He added that prices have slightly increased compared to last year, with a 2 to 5% rise, mostly showing a steady quarterly growth.
Inflation driving prices up
Inflation is considered the primary reason for the price increase in apartments. “We expect stable, slight price growth in the next year in line with inflation, as well as a modest increase in demand by about 5% by the end of next year,” Dašić concluded.
Lower demand and rental prices since March
Unlike the apartment sales market, the rental market has experienced a shift since March this year, according to Stefan Mišković, the owner of the Multitask real estate agency.
“There has been a slight decrease in demand since March. The reason for this is the significant outflow of Russians and Ukrainians who kept demand high, as well as the increasing number of Turkish nationals and local residents who are not financially able to afford the rental prices from the previous period. As a result, rental prices have slightly corrected and decreased by about 10% compared to last year,” Mišković explained. He also noted that the increase in wages through the “Europe Now 2” program has not had an impact on increasing rental demand or prices.
Rental prices in Podgorica are as follows: studio apartments range from 300 to 350 euros, one-bedroom apartments from 400 to 600 euros, two-bedroom apartments from 600 to 1,000 euros, and three-bedroom apartments from 800 to 3,500 euros. These prices vary depending on the size, location, building, and furnishings.
