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

      A developing economy: Severe unemployment is a key problem for the economy. Corruption is also said to be a major problem, with a large black market .

      AccessIt 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 InfrastructureInfrastructure for management of property and support of rental is developing.


Summary comments:

Montenegro 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.   

  • Detailed information - Montenegro Property

    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 comments made.

     Map of Serbia and Montenegro


    Country Information:

    Montenegro is divided into three regions: coastal, central and mountain.

    The coastal towns offer delightful architectural details and history.

    The towns of the central region are rich in historical and cultural monuments.

    "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. "



    Economic development


     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.


    Property Market


    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.