Montenegro Update

Montenegro is on the up and up. Over the past five years, the amount of foreign investors has increased dramatically. This has helped push prices up with some investors seeing a 30% increase on their property values year on year.

Much has changed in the past five years in Montenegro to allay investor fears – there are far more enlgish speaking professionals who can help with your purchases, and with the introduction of foreign mortgages and increased levels of legislation designed to protect foreign buyers, Montenegro looks to be an excellent place to invest.

The government are doing their bit to push foreign property investment with their ‘Tourist Masterplan’ which maps out a long-term strategy to 2020 to push for more tourists to come to the country. The plan includes new luxury hotel complexes, golf courses and developments, all of which will be music to the ears of those who have already invested in Montenegro. However, the government are taking care to ensure that the natural beauty of Montenegro is not destroyed as the country’s beauty is one pull for tourists. To ensure overdevelopment does not become a problem, there are intense regulations laid down. This means that in the future there is likely to be a shortage of property as demand starts to outstrip demand – another reason why Montenegro as part of a long-term property investment strategy would be a good one.

As ever, location is everything. Here at BuyingForeignProperty, we believe that inland areas such as Lake Skadar or the ski regions of Durmitor and Kolasin, which are currently fairly cheap, look like a good bet for the future. Herceg Novi is also set to be a good place too invest thanks to it’s proximity to Durovnik airport in Croatia and therefore buoyant rental market. Budget airlines look set to fly to Montenegro’s capital, Podgorica, soon therefore if you are looking to buy immediately, we would suggest here would be a good place.

For those interested in culture and history and who have a little more in their budget, properties around the Boka Bay area and around Buva/Petrovac are worth a look. Properties in this area are unique and the setting is stunning. With new marinas and a golf course set to be built nearby, the rental market is good and looks set to be strong for the foreseeable future.

The one downside of Montenegro is that the property market is almost entirely dependent on the tourist industry. There are few large commercial purchases in the country and there are not a lot of factories or headquarters of large companies, nor is there the market for these sorts of ventures at the moment. Instead, the market relies on holiday rentals and is turning into an exclusive holiday centre.

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