Montenegro’s construction activity increased in the second quarter of 2026, with the value of completed works rising alongside record prices for newly built apartments. According to MONSTAT, the value of completed construction works was 6.3% higher year on year in Q2 and 6.5% above the first-quarter level.
Construction activity had already recorded a 5.1% annual increase in Q1, although output at the start of the year was 12.6% lower than in the final quarter of 2025. The second-quarter increase therefore followed a weaker sequential performance at the beginning of 2026. Residential property prices recorded a further increase during the same period. The average transaction price for newly built apartments reached a record €2,557 per square metre in Q2, compared with €2,445/m² in Q1 and €2,201/m² a year earlier.
The Q2 figure represents annual growth of approximately 16.2% and an increase of about 4.6% from the previous quarter. New-build prices varied significantly by region. The average reached €2,838/m² on the coast, €2,510/m² in Podgorica, €2,145/m² in northern Montenegro and €2,131/m² in the central region. MONSTAT’s indicator covers first-time sales of newly built dwellings rather than the entire property market and therefore does not constitute a complete measure of housing supply and demand.
The national average for new construction has nevertheless increased from approximately €1,224/m² in Q2 2021. In Podgorica, the average has risen from around €1,238/m² over the same five-year period. The simultaneous increase in construction output and new-build prices affects residential development economics. Higher transaction values increase the potential revenue from new projects, while developers continue to face costs associated with land, labour, materials and financing.
The residential development pipeline was already visible in the first quarter. Montenegro issued 213 building permits in Q1 2026, covering plans for 1,388 dwellings with a combined 83,289 square metres of residential floor area. The next building-permit data release is scheduled for 27 August, meaning a complete picture of planned residential supply for Q2 was not yet available. Construction activity also extends beyond residential development. Montenegro is preparing and implementing projects involving motorways, railway rehabilitation, electricity transmission and distribution, water systems, wastewater treatment and urban transport, with projects increasingly moving from planning into procurement and construction.
These projects draw on resources that are also required by residential construction, including engineers, project managers, skilled trades, concrete production, aggregates, transport capacity, machinery and specialist subcontractors. Montenegro’s construction market also relies on foreign workers. Infrastructure projects backed by international financial institutions involve requirements covering procurement, environmental compliance, occupational safety, quality management and contract administration.
The combination of residential and public infrastructure activity is therefore occurring alongside increased requirements for construction-sector resources and project delivery. Higher apartment prices also affect housing affordability. At the national Q2 average of €2,557/m², a hypothetical 60-square-metre newly built apartment would have a value of approximately €153,000, before transaction and financing costs.
An increase in construction activity does not necessarily translate into lower housing costs. Prices can remain elevated when demand, land costs, development expenses and investor purchases increase at the same time as supply. Montenegro entered the second half of 2026 with completed construction output rising and newly built residential properties recording historically high transaction prices. The development of the residential market is taking place alongside a widening infrastructure pipeline, with the simultaneous implementation of private and public projects placing greater requirements on the construction sector’s labour, equipment and project-management capacity.
