Montenegro Property - a market overview
Key points to note on Montenegro Property:
· Early in the development process:
On February 4,
2003, the federal parliament of Yugoslavia created a loose commonwealth of
Serbia and Montenegro called Serbia and Montenegro.
· Growing tourism:
Located on the Adriatic coast, , tourism grew by 50% in 2005
unemployment is a key problem for the economy. Corruption is also said to be a
major problem, with a large black market .
It is still difficult to get
to Montenegro at a reasonable cost.
· Potential : The
potential for capital appreciation in Montenegro is significant. Property prices
are very competitive even to when compared to its neighbours e.g. Croatia.
· Support Infrastructure: Infrastructure
for management of property and support of rental is developing.
property has potential for capital
appreciation and attractive rental yields. It's location and unspoilt
countryside and towns will continue to attract growing numbers of tourists.
At this time it is a higher risk investment due to the less stable economy, lack
of support infrastructure and large black market.
It is our goal to develop a range of investment
opportunities for people who are looking at buying investment property. Please
find below information that we think is useful property investment advice. The
information ranges from web links to interesting web sites, news articles and
property reports that we have found. We do not necessarily agree with all the
Montenegro is divided into three regions: coastal, central
The coastal towns offer delightful architectural details
The towns of the central region are rich in historical and
"Montenegro is a time capsule that has been preserved so
perfectly that it should be on everyone's wish list to visit again and again.
Not only in the summer months for catching a tan and swimming in the wonderful
Adriatic Sea, but especially in the other months, to see all the natural and
manmade heritage, to see with your own eyes how people throughout the ages have
managed to build and maintain the spirit of humanity. "
Montenegro severed its economy from federal control and
from Serbia during the Milošević era. Now both republics have separate central
banks, different currencies - Montenegro uses the euro, while Serbia uses the
Serbian dinar as official currency. The two states also have different customs
tariffs, separate state budgets, police forces, governments.
The complexity of Serbia and Montenegro's political
relationships, slow progress in privatisation, and stagnation in the European
economy are holding back the economy. Arrangements with the IMF, especially
requirements for fiscal discipline, are an important element in policy
formation. Severe unemployment remains a key political economic problem.
Corruption also presents a major problem, with a large black market and a high
degree of criminal involvement in the formal economy.
The potential for capital appreciation in Montenegro is
significant. Property prices are very competitive even to when compared to its
neighbours – e.g. 25% less than Croatia. As the Republic moves closer to EU
accession we expect property inflation to rise as per other countries – e.g.
Greek property prices rose by up to 400% in the 4 years running up to membershi
As a second home destination, Montenegro is popular with
Russians, Germans and eastern Europeans. However, bargain-hunting Brits are
starting to discover its many charms with the help of the Montenegrin government
that has removed many of the obstacles for potential homebuyers including the
red tape in terms of visas, residency and taxes.
Homes are available throughout the country although the
northern part of the coast is more popular and more expensive whereas there are
bargain homes available in the south. The majority of property being marketed to
overseas buyers is to be found along the Adriatic coast, but there is also
plenty of choice in the mountains for those after a home within a skiing resort.
Although it is widely believed that Montenegro will enter the EU in the next
four or five years, agents are already reporting fast price rises in property.
Generally there are no major restrictions EEC citizen’s
buying a property in Montenegro. However, to complete the purchase, it is
necessary to fulfill two conditions, which are the legal entitlement to the
property and the registration of the home with the Area Property Registry. A
written contract is required that must be signed by both the buyer and seller,
which must be certified by a court in Serbia or Montenegro. Purchase Tax, set at
a rate of 2% of the value of the home is required to be paid and then the home
can be registered with the local Area Property Registry. Once the agreed amount
of money has been exchanged, the purchase is complete and in fact the whole
procedure can take just a couple of days.