Although the Law on Legalization of Unauthorized Buildings was adopted to regulate the real estate market in the long term, it has temporarily blocked transactions in the short term. All illegal properties—estimated at around 120,000 across Montenegro—cannot be sold until they undergo the legalization process. This has slowed the market and complicated work for real estate agencies.
Stefan Mišković, Chairman of the Board of the Association of Real Estate Agencies of Montenegro and owner of Multitask Real Estate, emphasized that the law will ultimately help regulate land use, curb illegal construction, and provide greater security for both domestic and foreign investors.
The Notary Chamber requested clarification from the Ministry of Spatial Planning, Urbanism, and State Property, which confirmed that any property lacking a building permit or exceeding permitted construction cannot be sold, regardless of whether it appears in cadastral records or satellite imagery. Until legalization is completed, owners have no legal right to dispose of the property.
In the long term, the law is expected to reduce or eliminate illegal construction, improve the appearance of settlements, and enhance quality of life. It also allows property owners to legalize their buildings under favorable conditions, creating a safer and more stable market, which is likely to increase foreign investor confidence.
Mišković noted that, although the law has temporarily blocked part of the market, it will provide legal agencies with more legitimate work opportunities and allow illegal properties to be legalized, eventually reducing the short-term impact on the market.
The law was passed by parliament on July 31, with the goal of efficiently legalizing existing illegal buildings and preventing new unauthorized construction. The government estimates that the legalization process could generate 300 to 400 million euros in revenue, which will be used to build necessary infrastructure and improve living standards. Satellite mapping of Montenegro has been completed to monitor illegal constructions, and properties built without permits or not submitted for legalization within six months will be demolished.
