Montenegro Property

Montenegro’s breathtaking scenery and coastline have lured many property investors to buy in this safe, upmarket location. The newest European republic, when it broke away from Serbia in June 2006, now has serious aspirations to become part of the EU. It has adopted the Euro, although it is not yet a member of the EU.

Montenegro is a member of the UN (6.'06), European Bank for Reconstruction and Development (EBRD) 9.'06, the European Investment Bank, and the IMF and World Bank since Jan '07. Already the EU has provided over €2bn to Montenegro and Serbia since 2000. Investment is going into airports at Podgorica and Tivat, as well as railways, highways and waterways.

The combination of strong GDP growth – over 6% in 2006*, low inflation and a significant inflow of foreign direct investment (more than $1 bn over two years), alongside adoption of the Euro, have contributed to economic stability. Indeed the country’s rating was upgraded by Standard & Poors in March ‘07 from BB to BB+ for long term currency

The Republic of Montenegro, situated on the Adriatic coast, became the world’s first internationally recognised ecological state in 1992 and boasts the world’s second deepest canyon, the Mediterranean’s only fjord, Europe’s most beautiful beaches, four national parks and two Unesco world heritage sites (Perast, Kotor). The region has long been a favourite with the rich and famous. High mountains close to the sea go a long way to protecting it from over-development

The World Council for Tourism claims "Montenegro, for the fourth year running is in the top three fastest growing tourist economies of the world" - 2007

The property market has seen double digit growth along the coast in 12 months and by up to 50% per annum in some areas**. This has been driven by a strong tourist industry, international tourism up 19% for the first 9 months of 2007***.

The government is also creating the right conditions for the development of facilities such as marinas and golf resorts. Recently a deal has been done with the government for a major investment project in a marina at Tivat, which has airport links with European capitals.

Neighbouring Croatia (Dubrovnik – a 30-minute drive up the coast) is priced at €4,000+/sqm. Property in parts of Montenegro are still two thirds of that price, so there is plenty of potential for capital growth. It is considered to be about 2-3 years behind Croatia in terms of development . With only 290 kilometres of coastline the balance of supply and demand should favour early buyers and keep prices high.

Montenegro Investment Property

For a quick overview of Montenegro’ country profile and macro-economic indicators, click on Montenegro on the left-hand menu, then Snapshot profile or go to STEP country profile to give you more in-depth information of the Social, Technological, Economic and Political profile for the country.

To give you more background as to why you might consider investing in Montenegro, go to the Why Invest section, or maybe look at the individual towns and cities profiled in each country's Towns section.

Montenegro Holiday Homes

To see what property is available in Montenegro, go to the left hand menu and click on Properties, or simply click here on Montenegro property or to do a Montenegro property search click on Properties and then Property search on the left hand menu, or click on this Property search link. If you cannot find what you like, please contact us on 01932 849536, as we often have more properties than are shown on the website.

Source: * EBRD, ** Colliers International Serbia 2007, *** National Tourism Organisation of Montenegro
Map: Courtesy of Lonely Planet