While there’s talk of stagnation and declining real estate prices worldwide, the market in Montenegro has yet to cool down. Throughout last year, we witnessed an increase in property prices. However, this hasn’t deterred investors much, as there has been a decrease in foreign direct investment in all segments except real estate. According to data from the Central Bank of Montenegro (CBCG), by the end of November last year, investments in real estate amounted to 412.95 million euros, marking a 0.63% increase compared to the same period in 2022.
Speaking of prices, the average price per square meter in new construction in the third quarter of last year was 1,643 euros. This represents a 9.5% increase compared to the second quarter and nearly a 24.5% increase compared to the same period in 2022.
Apartments are most expensive in Podgorica, where the average price per square meter was 1,700 euros, marking a 7.5% increase compared to the second quarter and a 16.3% increase compared to the previous year. Prices have also risen on the coast, where the square meter cost 1,584 euros. In the northern region, the average price per square meter was 1,288 euros, while apartments remain the most affordable in the central region, where the price per square meter was 662 euros.
Data from Monstat also shows that the average market price per square meter in new construction was 1,647 euros, while in the category of affordable housing construction, it was 589 euros.
However, official statistics aside, on-the-ground situations show that prices per square meter are even higher. Darko Đikanović, a real estate market analyst at the consulting company Adriatic Advisors, stated in a recent interview with eKapija that the average price per square meter for a one-bedroom apartment in Podgorica is 1,750 euros, whereas, for comparison, in 2021, the average price was only 1,200 euros.
On the coast, prices are significantly higher, with the most expensive square meters found in Tivat, Kotor, and Budva.
- If you plan to buy an apartment in these cities, expect the average price for a one-bedroom apartment to be 2,750 euros in Budva, while in Kotor, the average is 2,950 euros per square meter. This year, the average price of one-bedroom apartments in Tivat has exceeded 3,000 euros and is now 3,370 euros per square meter. Although price increases varied from city to city, on average, apartment prices are now about 40% higher compared to 2021 – Đikanović said in October for our portal.
As we can see, prices have risen, and so has the demand for square meters. According to Đikanović, demand for real estate was extremely high throughout 2022. This trend has continued into 2023.
- The construction sector has recognized the supply-demand imbalance, as evidenced by the increase in residential construction after a long period of inactivity due to the pandemic. The number of planned apartments in buildings that obtained building permits in the first half of 2023 is 33% higher compared to the same period last year, while the number of completed apartments increased by 30% year-on-year, and there is also a significant number of apartments currently under construction – Đikanović pointed out.
Speaking about demand and the most attractive locations, Đikanović mentioned that buyers, especially foreign ones, are most interested in Montenegro’s coast. This is precisely why prices on the coast are the highest. The Golden Triangle of Tivat, Kotor, and Budva generates the most buyer interest.
Another segment that cannot be ignored in Montenegro is the luxury real estate market, which has been growing year by year. This trend will continue in the future, according to Niko Laković, partner and executive director at the Montenegrin office of the renowned Sotheby’s International Realty.
As Laković stated in an interview, Montenegro’s surreal nature, proximity to mountains and sea, resorts on the coast, as well as authentic and timeless buildings in one of the most beautiful bays in the world, have positioned Montenegro high on the map of the most attractive destinations in terms of luxury real estate.
- Additionally, prices in Montenegro are still acceptable compared to some other luxury destinations, and the fact that the country will be the next member of the European Union is an additional incentive for investors to invest in real estate, as their value will only increase in the years to come – Laković said.
Indeed, investments in luxury real estate have marked the past year. This includes the Luštica Bay development, which will feature the first golf residences in Montenegro.
In the Luštica Bay project, over 380 million euros have been invested, which has developed around 10% of the entire settlement, according to Maša Radulović, Corporate Relations Manager at Luštica Development. As she stated in an interview, as a successful community, the complex is currently developing within three neighborhoods – Marina Village, Centrale, and The Peaks. She announced that within Luštica Bay, six more hotels, a golf course, and new neighborhoods will be built.
During the past year, the company also introduced the Visterija residences located in Marina Village, just a few minutes’ walk from the promenade and the beach.
However, what has attracted the most attention regarding Luštica Bay are the first golf residences, which, according to all experts in this field, will bring a new dimension to the real estate market and attract an entirely new clientele to Montenegro.
Construction of The Peaks neighborhood began with the laying of the cornerstone in July last year, and the first quarter, named Botanika, is located above the positions of the first two holes of the future golf course and includes seven villas, 12 townhouses, and 39 apartments. As announced, the first owners will be welcomed during 2024.
- Botanika is the realization of the vision of The Peaks neighborhood, which includes the golf course and residential collections. An investment of around 400 million euros will be made in the phased construction of the first 18-hole golf course in Montenegro and the majority of golf residences over the next six years. The master plan envisages that over the next ten years, on an area of approximately one million square meters of golf course and neighborhoods, 130 villas, 520 apartments, a golf hotel with 300 keys, and a golf club will be built – stated Luštica Development company.
The project of building Cortex Village has attracted significant attention from our readers, as it offers apartments to employees in the IT sector, members of ICT Cortex companies, under 50% favorable conditions.
Cortex Village plans include five buildings with 115 residential units and 12,500 square meters of above-ground area. It will be constructed along the banks of the Morača River, near the City Mall and BIG Shopping centers, within the detailed urban plan of Titex in Podgorica. In addition to apartments, it will feature green areas, an underground garage, parking, fitness center, park, children’s playground, community center, and spaces for children.
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