The most popular resorts of Montenegro are Bar, the Budva Riviera, and the Bay of Kotor. The Budva Riviera occupies the central part of the Montenegrin coast – it is one of the sunniest places on the Adriatic and in Europe.
The minimum cost of properties in Montenegro, according to experts surveyed by Gazeta.Ru, starts from 50 thousand euros. With such a budget, you can expect a small one-room apartment in an old building without furniture or with a minimal set of furniture (the rest can be purchased additionally, for example, on the website http://gm-house.ru/daytona-signorini-coco.htm, which features a catalog of modern style furniture). However, most likely, the property will be located at a distance from the sea.
“The main change in recent times: the real estate market of Montenegro has shown its extreme vulnerability in terms of legislation. An example is the 'Miraxa' project (the 'Astra Montenegro' resort), which was not completed, and as a result, the developers sued for their own money. After 2008, projects that were completed were sold off by half. At the same time, developers are not trying to lower prices on remaining properties. Therefore, prices for new housing in Montenegro remain at the level of 3200-3500 euros per square meter. There are no new projects – so developers are holding the price,” says Igor Indriksons, head of the consulting portal Indriksons.ru.
In apartments in projects at the very early stage of construction, the cost per square meter averages 2500 euros, while in 2008 such properties were sold for 4000-5000 euros per square meter.
For example, in the middle of last year, the analytical portal GlobalPropertyGuide.com stated that even after a year-long decline, real estate prices in Montenegro remain high. According to the portal, the average cost per square meter of resort real estate is 2870 euros.
However, now you can find properties costing even less than the mentioned 2870 euros per square meter. “Prices will vary depending on the town in question. For example, in the area of the city of Bar or in some areas of the Bay of Kotor, an apartment on the secondary housing market can be bought for 1100-1200 euros per sq.m, in the same areas the minimum price for apartments in new buildings starts from 1500-1800 euros per sq.m. In Budva, apartments in new buildings will cost from 2 thousand per sq.m,” says Vera Mochalova, an expert at the foreign real estate department of the company RentSale.
For example, on the website Montenegroprospects.com, an apartment of about 50 sq.m. can be purchased for 77 thousand euros. True, the apartment will have a minimum of furniture. For a similar price (on the website Budvarealestate.com), a studio of 30 sq.m is offered, 300 m from the sea. The apartment is fully furnished, with a terrace of 7 sq.m with a sea view.
Larger apartments will cost significantly more. In Budva, on the website Budvarealestate.com, you can buy a two-room apartment (about 75 sq.m.) for about 110 thousand euros. The furniture includes only the kitchen. The apartment has two terraces, but neither has a sea view. A house of about 100 sq.m with a garden of almost 300 sq.m can be bought for 250 thousand euros. Moreover, the house is only 100 m from the sea. In Becici (Budva), a one-room apartment of a small area – about 35 sq.m – can be purchased for about 50 thousand euros. The building has shared parking.
When buying apartments or houses in Montenegro, the first thing to do is to inquire about the ownership rights to the property. There are a large number of illegally built buildings in Montenegro. However, the authorities of Montenegro have attempted to solve this problem by providing an opportunity for owners of such housing to legalize it. It is assumed that the state will provide the connection of utilities to such houses, but owners will have to pay for it. Municipalities will determine the amount of expenses for each object based on its location and area. According to various estimates, the number of self-built structures in Montenegro reaches 100 thousand objects.
However, not all experts believe in the success of this initiative. “In Montenegro, it is very difficult even to obtain a construction permit. I think it will be the same with self-built structures – legalizing them will be very difficult. It will be a slow process that will drag on for many years,” believes Igor Indriksons.
Overall, the real estate market of Montenegro cannot be called prosperous – in 2008 the market fell significantly, few properties are being built, many projects abandoned. According to the portal Tranio.Ru, in the first quarter of 2012, sales volume in new buildings of Montenegro fell almost 50% year-on-year. Despite these problems, at the moment real estate prices have stabilized. And, according to experts, they will not decrease in the near future.
“The market will stagnate until developers sell everything they built and didn't sell. Prices will stay within the range of 3000-3500 euros per square meter. Prices will not go lower. There is very little land in Montenegro and before the crisis it was sold at high prices. Moreover, the main buyer is a Russian, and Russians have a fate of buying real estate at inflated prices,” predicts Igor Indriksons.
“The expected continuation of price decline did not happen. Prices remained at last year's level and even rose slightly in some cases, but this is due to the slowdown in the construction of new houses and somewhat increased demand for good quality housing. We think that in the coming year, neither significant growth nor significant price decline is expected,” believes Vera Molchanova.
If you decide to buy real estate in Montenegro for your own vacation, it is worth learning about the additional costs when purchasing an apartment or house. According to Tranio.Ru, the property acquisition tax (transfer of ownership) is 3% of the appraised value of the property. The one-time tax on the purchase of newly built housing is 17%. Moreover, this tax must be paid by the time the ownership right is obtained from the registering authority. You need to pay a registration fee for notarization in court and entry of the corresponding record in the cadastre – 0.01-0.025% of the property value. There is no capital gains tax from the sale of real estate in Montenegro.
Since March 2009, foreigners have the right to purchase land plots and houses with land plots in Montenegro in their own name. However, some restrictions remain – foreign citizens cannot buy agricultural land in Montenegro, forests and protected areas, cultural monuments and defense territories.