The most respectable and popular among foreign buyers is housing on the coast. The beauty of the Adriatic Sea leaves no one indifferent, so when the question of purchasing property in Montenegro arises, preference is given to the coastline. Prices for coastal apartments depend on many factors: distance to the sea, size, age or degree of readiness of the property, as well as the infrastructure of the area.
The most in demand is real estate in the Bay of Kotor, because due to its climatic and natural characteristics it is considered the cleanest place in Europe. In second place is the Budva Riviera, although over the past few years, due to the construction boom, it has become somewhat overpopulated. Prices for buildings relatively close to the sea (more than 150 meters) range from €2-4 thousand per sq. m. If we are talking about houses and apartments located directly on the shore, then the cost per square meter rises to €5-6 thousand. The price increases if the property is newly built, renovated, or has its own beach, plot, or pier.
“If quite recently foreign clients purchased housing no further than 500 meters from the sea, today there is an increased interest in properties located on mountain slopes,” says Maria Vasilenko, General Director of a real estate agency. “These places are rightfully considered the most beautiful in the country, but for now the communications and infrastructure of the areas leave much to be desired, so the cost of housing is much lower – €1.3-2 thousand per sq. m. But in the near future, when these problems are resolved, prices will skyrocket exponentially.”
In addition to the fact that Montenegrin real estate is promising in every respect, it has one distinctive feature – the presence of its own water supply system from underground sources. This helps to avoid problems with the shortage of drinking water throughout the country.
Apartments beyond competition
All real estate in Montenegro is divided into private houses (also called villas) and apartments, also called apartments. Housing in this country is classified not by the number of rooms, as is customary with us, but by the number of bedrooms. For example, a one-room apartment is considered to consist of a living room, kitchen, and one bedroom. In addition to apartments with a certain number of rooms, so-called studios are very popular. These are apartments that combine a kitchen, bedroom, living room, and study in one space.
Mostly, multi-apartment residential complexes are built at a distance of 100-800 meters from the coastline. The architecture of the buildings is designed to provide a sea view to the maximum number of owners. New houses are built very quickly. Starting work in the fall, by the end of spring you can get finished apartments with turnkey finishing according to European standards. Among building materials, preference is given to brick.
“The layouts of Montenegrin apartments, which are spacious and functional, usually completely satisfy our compatriots,” says Maria Vasilenko. “There is enough space not only in large, but also in the smallest, cheap apartments, even despite the fact that often instead of a separate kitchen there is just a small kitchenette. A distinctive feature of local housing is huge balconies, with an area of 6 to 20 sq. m, which essentially function as another room.”
If you purchase an apartment at the construction stage, the buyer has much more opportunities: you can buy foam blocks and foam concrete, choose your own layout, as well as finishing materials to your taste.
Building yourself is cheaper
However, on the Montenegrin real estate market, not only apartments are in demand, but also private villas. The choice is very wide: buyers are offered both luxurious new buildings and old stone houses from the last century. The price range is from €200,000 to €6 million. If you are lucky, you can find old houses for demolition in a good location, not far from the sea, with its own garden or vegetable garden. In this case, the real estate itself costs literally pennies: the main value is the land, which can then be used to build your own cottage.
“If the goal is to save money, then in many cases it is more profitable to buy land plots and build structures on them,” says Vladislav Ivanko, sales manager of a real estate company. “The cost of land in Montenegro ranges from €100-400 per square meter, depending on the location of the plot. And the construction price is approximately €400-1.5 thousand per square meter. But before concluding a deal, it is necessary to verify whether there is a construction permit, as it is prohibited by law in some areas. It should also be kept in mind that land plots over 500 square meters can only be acquired by legal entities registered in this country.”
When buying ready-made houses in Montenegro, it is necessary to take into account some features of their construction. First, the buildings lack a foundation. The walls are built directly from the ground, without additional waterproofing. Despite the fact that the soil in Montenegro does not freeze, dampness can rise along the walls if they are, for example, concrete, and mold can occur. Second, Montenegro is a seismically hazardous area, so it is better to ensure that the building is constructed according to all rules. And third, Montenegrin houses have almost no ventilation. Simply because, with the traditional lifestyle of Montenegrins, it is not needed – doors and windows are constantly open.
Without much hassle
The process of buying real estate in Montenegro is not complicated at all: no special documents or permits are required. According to the law 'On Foreign Investments', citizens of other countries can purchase real estate in the country without any restrictions. The procedure for completing a purchase and sale transaction takes only two to three days. Housing is purchased from the direct owner.
A feature of Montenegro is that there is no institution of notaries, and all documents are certified in court. Therefore, the transaction will be approved not by a lawyer but by a court secretary. The purchase and sale agreement can be concluded by the buyer or his authorized representative; registration of the new owner takes place in the Municipality, so personal presence is not required. The buyer can issue a power of attorney to a lawyer or an employee of a real estate agency, who will independently resolve all administrative and legal issues.
“The signing of the preliminary agreement usually takes place simultaneously with the payment of a 10% deposit,” said Vladislav Ivanko. “For purchase and sale transactions, a one-time tax of 3% of the property value is paid. The completion of the transaction occurs upon receipt of the Municipality’s Decision on the transfer of ownership to the new owner and the Property List. There is a gap in the registration of real estate related to the fact that after signing the purchase and sale agreement, it is necessary to fully settle with the seller, and only after that does the registration of the transaction in the Cadastre take place.”
In addition to the one-time tax, the buyer will also face costs for registering the transaction in court – €80-400 and payment of an annual tax of 0.08-0.8% of the transaction amount. Obtaining the Property List will cost €30, and the fee for the services of a real estate company will be 3% of the price of the property.