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Tuesday, May 28, 2024
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Montenegro’s property market

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In Montenegro, anticipating a decline in apartment prices in the foreseeable future isn’t deemed plausible, as asserted by Mile Gujić, Chair of the Construction Association Committee within the Chamber of Economy (PKCG). Gujić emphasized the challenges in forecasting future trends in this domain.

“Currently, predicting price trends is exceedingly challenging. From an economic standpoint, it’s improbable for real estate prices to decline. While there might be a slight decrease in demand presently, it hasn’t translated into price drops. Even if demand continues to dwindle, it’s more likely that prices will stabilize rather than plummet. I’m skeptical about an imminent price decline,” Gujić conveyed in an interview with the Mina-business agency.

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He referenced statistics from the initial three quarters of the previous year, noting the construction of 1.48 thousand apartments, totaling just over 100 thousand square meters. This, he highlighted, falls short of meeting demand, both domestic and from foreign buyers, a significant factor contributing to price hikes.

“Montenegro has become an attractive market, particularly along the coast, not only for residency but also for business, drawing in individuals from various countries like Turkey, Germany, Poland, and Israel,” Gujić explained.

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The conversation extended to the impact of external factors like the conflict in Ukraine and the COVID-19 pandemic, which have influenced market dynamics. Despite expectations, particularly due to the departure of some foreign buyers, price reductions haven’t materialized. Instead, prices have seen a continuous upward trajectory over recent years.

Gujić highlighted the burgeoning construction industry in Montenegro, underscoring its unprecedented growth. However, this expansion hasn’t been sufficient to meet escalating demand, further fueled by inflation, rising material costs, and labor shortages.

Furthermore, Gujić discussed the challenges facing the construction sector, including a scarcity of skilled labor, inadequate legislative frameworks, and bureaucratic hurdles. He emphasized the need for regulatory reforms to streamline processes and enhance efficiency.

The dialogue also touched upon the potential of upcoming infrastructure projects to stimulate economic growth, with Gujić citing the commencement of the construction of the second phase of the highway from Mateševo to Andrijevica as a significant development.

Regarding legislative frameworks, Gujić noted the room for improvement, suggesting that existing laws could inadvertently hinder business operations.

In conclusion, Gujić highlighted ongoing efforts by the PKCG to support the domestic economy and entrepreneurs through initiatives like the “Strength is Within Us All” campaign, aimed at fostering collaboration and resilience within the business community.

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