Ana Vujičić from Podgorica recently solved her housing issue. She told Radio Montenegro that property prices are relatively high and quite consistent.
“The prices of square meters in the city center and in some more distant areas have completely leveled out, reaching up to 2,500 euros or even higher. I think this is unrealistic for Podgorica,” she said.
Market analyst Jovan Rabrenović stated that according to official statistics, average prices increased by around 100 euros last year, reaching 1,850 euros per square meter, but he believes they are actually much higher.
“In Podgorica, for instance, you cannot find a property for less than 1,900 euros, and completed apartments are already over 2,500 euros,” he pointed out.
Rabrenović also noted that there are no more cheap apartments in other parts of the country.
“In the past, prices in central areas and the north were low, but now we have prices reaching 2,500 euros per square meter in Kolašin,” he said.
Ksenija Nikolić from the Real Estate Agency Association explained that prices are high due to strong demand, particularly along the coast, especially in exclusive locations in Tivat, Herceg Novi, and Budva.
“Although foreign investments this year have decreased compared to last year’s record amounts, many foreign investors, including Russians and Ukrainians, are still actively investing in Montenegro. They are currently selling properties at a significant profit due to the prices the market offers,” Nikolić stated.
Rabrenović added that demand has been influenced by favorable interest rates between 5 and 7 percent, as well as inflation.
The Ministry of Finance’s analysis had predicted a slight decrease in prices.
However, the interviewees on Radio Montenegro believe that this is not realistic at the moment.
“As long as supply exceeds demand, prices will not drop, on the contrary,” Rabrenović said.
“Forecasts are very positive when it comes to interest in the Montenegrin market, so we wouldn’t talk about any price decrease because the outlook suggests otherwise,” Nikolić said.
Even in the case of a potential departure of some foreigners from the country, there wouldn’t be any significant corrections in the market.
When asked whether it is a good time to invest in real estate given the current prices, the market analyst said there are still opportunities.
“If I were to buy property, I would do so with a loan because the amount of the loan and the interest it carries will definitely not be higher than the impact of inflation or what someone can gain from buying property,” he said.
Rabrenović also noted that high property prices are accompanied by high rents, which range from 300 to even 1,000 euros.
He does not expect a decrease in rental prices either.
