In the first six months of 2025, construction permits and work notifications were issued for 174 apartments across Montenegro, the lowest number in the past 20 years.
The Chamber of Commerce Construction Committee attributes the decline primarily to new legal regulations introduced in March 2025, rather than market conditions. The new laws reintroduced mandatory construction permits (replacing previous simplified notifications) and transferred responsibility for smaller projects to local municipalities, which are still in transition.
In Q1, 30 permits were approved for 117 apartments, and in Q2, only 10 permits were issued for 57 apartments. For comparison, during the same period in 2021, 324 apartments were approved, and in 2017, permits were issued for 1,649 apartments.
Despite the low number of permits, foreign demand continues to drive high real estate prices, with nearly €230 million invested by foreigners in the first half of 2025. Housing loans also increased to €126.5 million (January–July), up from €100.6 million in 2024.
Average prices for new apartments reached €2,201 per square meter in Q2 2025, up from €1,821 in 2024 and €1,500 in 2023—an increase of almost 50% over two years. Analysts note that prices remain high as long as foreign demand continues, and ongoing construction mostly reflects permits issued in previous years.
While construction volume has decreased, the value of executed works shows a clear upward trend, indicating that investment activity continues despite regulatory adjustments.
