Montenegro: The next property hot spot?

With the news that Montenegro Airlines are set to start flying to London Gatwick, many property investors believe that property in Montenegro is set to be one of the next big property hot spots.

The direct flights not only open up the market to UK investors, but will also give the local area a boost to their tourism industry. Montenegro is starting to see transport links with many countries, and with promises made to improve the infrastructure throughout the country, it is easy to see why some foreign property investors are getting excited about Montenegro.

Montenegro probably isn’t the first country that overseas investors would think of, yet the country has a lot of plus points going for it. Already using the Euro, it is expected that Montenegro will be joining the EU in the near future. Prices are still relatively low compared to the rest of Europe and many are speculating that buying now could yield fantastic returns in the medium-term.

Montenegro has a population of around 700,000. Staggeringly, they welcome 2.3 million tourists to the country in 2007 and this figure is expected to increase over the next few years. A healthy tourism industry is always welcome news for investors as it means that there is a high chance of good rental yields from investment properties. With low taxes, many foreign investors are increasingly being drawn to the country ensuring that property prices are likely to grow over the next few years.

However, as with any purchase, it is advisable to do your homework. There is sometimes sketchy information on house deeds therefore it may take a while for a property purchase to complete. It is therefore advisable to deal with an experienced broker and/or lawyer who will understand all the quirks of the local property system. It is also important to note that new owners usually pay all the previous owners home-related unpaid bills therefore you should include a clause in your purchase agreement stating that the previous owner remains liable for their outstanding bills.

Read our buyer’s guide to Montenegro property purchases here.

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