According to the 2023 population census results, Montenegro’s population increased by only 0.6% compared to 2011, adding just 3,604 people. Meanwhile, the number of apartments grew by 25%, an increase of 78,205 units. This means that more than 20 apartments were built for every new resident. The analysis by the Society of Statisticians and Demographers of Montenegro highlights that nearly half of all apartments in the country are either vacant or used only seasonally.
Over the last 20 years, the housing stock expanded by 57.8%, adding over 144,000 units, while the population grew by just 1.8%. The census recorded a total of 392,909 apartments in Montenegro.
The structure of this growth is concerning. While the number of occupied apartments rose by 23%, vacant or seasonally used apartments more than doubled—from 72,499 to 160,287 units. Apartments used solely for business purposes increased over sixfold, from 2,487 to 16,720. Only 55% of the total housing stock is used for everyday living, with the remaining 45% being temporarily unoccupied, seasonal, or commercial properties.
Dr. Gordana Radojević, president of the Society of Statisticians and Demographers, noted that housing development over the past two decades has been driven largely by investment motives. Almost half of all apartments serve as investment assets rather than homes, remaining empty, seasonal, or commercial spaces.
Montenegro is increasingly becoming a destination for foreign real estate investments, while interest in other economic sectors declines. This trend raises housing demand and prices, slowing economic diversification and development in other fields. It also poses financial risks, as a drop in investor demand could lead to sharp price declines, leaving local buyers with overpriced properties and high loans. A similar situation occurred in 2009, when apartment prices fell nearly 45%.
Regional disparities are evident: the southern region holds 41% of all apartments but has a smaller population than the central and northern regions. The central region, home to 50% of the population, contains 37% of apartments, while the north has half the number of apartments compared to the south despite similar population sizes. The south also has the highest proportion of vacant and seasonal apartments, reinforcing its role as a hub for tourism and investment rather than permanent residence.
Dr. Radojević stressed the need for better coordination between demographic, housing, and regional policies to address overbuilding in certain areas and depopulation in others. For example, while the north experiences ongoing population decline, Podgorica faces overcrowding and infrastructure pressures.
Data show that more than 177,000 apartments, or 45% of Montenegro’s housing stock, are not intended for permanent living. Many domestic owners hold multiple properties, and a growing share of real estate belongs to foreign non-residents. Since 2020, foreign direct investment in real estate has surged, making up 52% of all foreign investments. Serbian, Turkish, and Russian nationals account for around 40% of these investments between 2023 and 2024.
Housing increasingly functions as capital preservation amid inflation rather than for actual living or rental use. This dynamic is reflected in rising apartment prices despite almost half of the housing stock being empty or seasonal.
Dr. Radojević also warned that large projects like Velje Brdo in Podgorica should be carefully evaluated to ensure they meet real population needs and support balanced regional development. Such projects risk further depopulating the northern region, which lost 14.2% of its population—about 25,200 people—between 2011 and 2023.
