Interest in property purchases and housing loans in Montenegro increased during October after the government announced its Euro model, scheduled to take effect in January 2027, CKB board member and risk director Sergej Kapustin said. The rise was particularly evident in Podgorica, with expectations of higher incomes already influencing buyer behaviour.
The model sets minimum net wages at 1,000 euros for jobs requiring basic or lower education, 1,250 euros for jobs requiring secondary education and 1,400 euros for positions requiring higher education. Kapustin described the increase in housing demand as an early response to the planned wage changes, before they take effect.
“This is an interesting example of how economic expectations can affect consumer behaviour before actual income changes,” Kapustin wrote. He also identified potential European Union membership as another possible driver for Montenegro, alongside higher household incomes, growing demand for housing loans and international investment.
Kapustin cited housing price increases between 2015 and 2024 in three countries: approximately 99% in Croatia, 107% in Poland and 135% in Lithuania. He said the timing was notable from a banking perspective, adding: “Real estate markets do not wait for economic reforms to start working.”
Citizens of some countries will need visas to enter Montenegro from November, Kapustin noted. He described the country as entering a period in which expectations of higher incomes, stronger interest in housing loans, international investment and European integration are converging. The Euro model is scheduled to begin in January 2027.
