In Montenegro, apartment prices vary significantly, with the average in the capital reaching €2,000 per square meter. The most sought-after area is Preko Morače, where prices exceed €2,400 per square meter. Despite the steep costs, demand remains strong.
Although real estate prices in Montenegro have soared, this has not deterred buyers; properties often sell out before construction is completed. According to official statistics, the average price for a square meter in Podgorica is €1,820, but in reality, prices are often much higher.
“It’s increasingly difficult to find a square meter under €2,000 in Podgorica. In areas like Stari Aerodrom and Zabjelo, prices hover around €2,000, while properties near City Quarter can exceed €2,400. This indicates a consistent upward trend,” says Mile Gujić, president of the PKCG Construction Association.
Since 2019, real estate prices in Montenegro have increased by over 60%. “Prices would not be at this level without high demand. This year, the number of building permits has decreased as investors expected demand to decline; however, it continues to surpass supply,” notes Stefan Mišković from the Real Estate Agency Association.
However, architect Sonja Dragović from the KANA association believes that the quality of construction does not match the high prices. “New residential neighborhoods in Podgorica often face numerous issues; they lack adequate public amenities and infrastructure. We don’t have enough new neighborhoods to meet public needs, which will become a more pressing problem in the future,” she warns.
While the market dictates the pace and logic of construction, banks emerge as the biggest beneficiaries. “Last year, banks allocated €121 million through housing loans, accounting for 14.1% of total loans,” Gujić states.
KANA concludes that urban development policies have neglected living conditions and emphasize that people’s needs should take precedence over profit. The challenges of securing housing have become daunting for average citizens, with the Tenants’ Association reporting that 40,000 families in Montenegro lack adequate housing.
