Price changes for new buildings in Montenegro in Q3 2024

Montenegro real estate market trends: prices for new buildings will soar in 2024

Montenegro, this small but charming country on the Adriatic coast, continues to attract the attention of investors and homebuyers from around the world. In the third quarter of 2024, Montenegro's real estate market showed an impressive increase in new-build prices, reflecting growing demand and the country's attractiveness as an investment, vacation and permanent residence destination. In the third quarter of 2024, Montenegro's real estate market continued to show interesting trends, reflecting both local economic factors and global trends. According to the Statistical Office of Montenegro, the average price of new apartments in the country's capital, Podgorica, was 1,780 euros per square meter. This is 1.1% higher than in the second quarter of 2024 and 27% higher than in the same period of 2023.

Regional differences remain significant. In coastal areas, known for their popularity among tourists and foreign investors, the average price reached €1,900 per square meter. This represents an increase of 2.3% compared to the previous quarter and 35% compared to the third quarter of 2023. Especially high prices are observed in prestigious locations such as Kotor and Becici, where the price per square meter in new buildings can reach 3200 euros. In the central regions of the country there is a more moderate increase in prices. The average cost of new housing here was 980 euros per square meter, which is 2.3% higher than in the second quarter of 2024, and 60% higher than a year ago. Experts attribute this to the growing interest in less touristy but environmentally friendly areas of the country.

The northern regions of Montenegro showed the most stable prices. The average cost per square meter in new buildings was 1220 euros, which is only 1.7% higher than in the previous quarter and 1.6% higher than a year ago. Analysts note that these areas remain attractive to local buyers looking for more affordable housing. It is interesting to note that demand for new housing in Montenegro remains strong, despite the rising prices. This is due to several factors. First, the country continues to attract foreign investors with its favorable tax regime and the program of obtaining a residence permit when buying real estate. Secondly, the development of infrastructure and improving the quality of construction make new buildings more attractive to buyers.

Real estate market experts predict that in the coming months, the growth of prices for new housing in Montenegro may slightly slow down. This is due to the expected increase in interest rates on mortgage loans, which may limit buying power. However, the long-term outlook for the market remains positive, given the country's stable economic growth and its growing appeal as a tourist destination. It is important to note that Montenegro's real estate market remains relatively small compared to larger European countries, making it more sensitive to fluctuations in supply and demand. Therefore, potential investors are advised to carefully analyze local factors and trends before making a purchase decision.

In conclusion, the third quarter of 2024 showed continued growth in new home prices in Montenegro, especially in popular coastal areas. Despite some signs of a slowdown, the market remains attractive to investors looking for opportunities in an emerging economy with great potential for tourism and real estate development. Montenegro therefore offers the perfect combination of investment opportunities and a high quality of life. Whether buying property to rent out, realizing ambitious development projects or relocating permanently, this country is ready to welcome those who are looking for new horizons for their capital and their lives.