Buying an apartment in Montenegro is becoming increasingly unaffordable for the average household. Prices for new apartments continue to rise, and with growing living costs, even families with regular incomes struggle to afford basic housing.
The average price per square meter reached €2,158 nationwide, about €2,066 in Podgorica, and €2,328 along the coast. A one-bedroom 50-square-meter apartment in the capital costs at least €100,000, with monthly mortgage payments often exceeding €500, assuming favorable loan terms. Additional costs like insurance, notary fees, taxes, and property valuations further increase the financial burden.
The Union of Free Trade Unions estimates that the average monthly consumer basket for a family of four is around €2,000, covering food, housing, utilities, education, transport, and healthcare. Families earning this amount barely cover basic needs and find it difficult to allocate hundreds of euros monthly for mortgages.
Mortgage interest rates range between 5-6%, with rising Euribor pushing payments higher. For a €100,000 loan over 30 years, monthly installments range from €530 to €600, and total repayments often exceed €180,000.
Dragan Živković from the Tenants Association highlights that most Montenegrins earning €600-800 cannot afford homeownership or mortgage loans. Many tenants are already struggling with rent payments, signaling a lack of government attention to the housing crisis.
Data shows around 70,000 empty apartments and over 90,000 seasonally used properties in Podgorica, while more than 23,000 families rent and about 20,000 households have extended family living together due to housing unaffordability.
The market is dominated by foreign buyers and the diaspora, pushing locals out. Property prices in Montenegro have risen 126% in five years, making housing a critical social issue without comprehensive state policies and subsidies.
The government recently introduced a law to regulate property rental and sales to bring the market out of the shadow economy. However, Živković doubts its effectiveness without strong enforcement and warns that increased taxation could lead landlords to raise rents, further burdening tenants.
He stresses the urgent need for a tenant protection law, currently stalled in parliament, to prevent vulnerable families from falling deeper into poverty.
