The Montenegrin real estate market shows steady growth. While prices are no longer as low as 6-7 years ago, they remain attractive to investors. Offers around 1000-1300 euros per m² are considered good investment opportunities. Return on investment depends on location and property type but averages 5-10 years when rented out.
The most sought-after by tourists and investors are:
Budva
Becici
Sveti Stefan
Przno
Rafailovici
These cities boast developed infrastructure, numerous attractions, and well-equipped beaches.
Montenegro's rental market is active. Prices vary by season:
Summer season: from 40 euros/night
Long-term off-season rentals: from 250 euros/month
Property tax in Montenegro is relatively low, typically ranging from 0.25% to 1% of the property's value per year. The exact rate depends on the municipality and property type.
Montenegro introduced a progressive real estate transfer tax system in January 2024:
For properties valued up to 150,000 euros: 3% of the purchase price
For properties valued between 150,000 and 500,000 euros: 4,500 euros on the first 150,000 euros, plus 5% on the amount exceeding 150,000 euros
For properties valued over 500,000 euros: 22,000 euros plus 6% on the amount exceeding 500,000 euros
This tax must be paid within 15 days after signing the sales contract.
Montenegro is aiming for EU membership, which could positively impact property values in the future. The development of tourism infrastructure and improved transport accessibility also contribute to the country's growing attractiveness to investors.
Documentation: Up to 80% of properties may have documentation issues, including illegal construction or violations of development plans.
Overpricing: Some sellers may inflate prices for foreign buyers.
Seasonality: High rental demand during summer may be followed by low demand in the off-season.
Restrictions for foreigners: There may be certain restrictions on land or property purchases in some areas.
Infrastructure: In some areas, infrastructure may be less developed compared to larger European countries.
When buying property in Montenegro, it's crucial to thoroughly check documentation and engage a professional lawyer for the transaction. Despite potential risks, with the right approach, investments in Montenegrin real estate can be profitable and promising.
