Montenegro is showing clear signs of an overheated real estate market, creating a bubble that could burst with serious consequences for the entire economy, according to the Tenants’ Association – Moj dom.
In such a scenario, they warn, it will once again be the most vulnerable who pay the highest price, while investors pull their money out of the country.
They cited several indicators of a market overheating: rising property prices, overproduction of luxury apartments, an oversupply without matching demand, and strong dependence on tourism.
The Association believes that the housing market in Montenegro no longer serves the needs of its people, but instead caters to profit. More housing, they argue, is being developed for foreigners and tourists rather than for local residents.
In response to alarming data on the housing stock, planned investments, and a growing housing crisis, the Association described Montenegro as a country with apartments without tenants and tenants without apartments.
Data from Monstat’s 2023 census confirms what renters have been experiencing for years — that the housing market does not work in favor of the people. Over 178,000 residential units are not in daily use, with 71,200 permanently abandoned or vacant.
This means that one in every four apartments in the country is unoccupied, while tens of thousands of people live in precarious conditions, paying unaffordable rents, lacking legal protection, and facing the constant threat of eviction or being displaced during the tourist season.
The current model of housing development, according to the Association, does not recognize the needs of workers, young people, or families. Instead, it prioritizes seasonal and luxury housing for wealthy investors and contributes to social inequality, gentrification, and migration.
In practice, this means more construction is happening for outsiders and tourists than for the people who actually live in Montenegro.
Renters now represent a growing portion of the population, including students, young couples, single parents, healthcare workers, teachers, and employees in the private sector.
Despite this, they have little to no legal, economic, or political protection. Without a tenancy law, subsidies, secure rental contracts, or the right to long-term housing, renters live as if they were guests in their own cities.
The Association believes that planned projects, such as Velje Brdo and the €3.5 billion investment in the Ulcinj municipality, have the potential to help resolve the housing crisis — but only if guided properly.
If these developments end up as another wave of elite-oriented apartment complexes, Montenegro will lose another chance to create a fair, functional, and inclusive housing system.
The Association is calling for every development project to guarantee at least 30 percent of units for affordable housing, involve local communities in planning, be under public oversight, and be part of a broader public housing strategy.
They have proposed a clear and realistic model that can stabilize the housing market and protect tenants. Key elements include a tenancy law, subsidized rentals for young people, families, and workers, and the establishment of a public housing fund.
The model also includes cooperative housing, a tax on vacant apartments, and regulation of tourist rentals.
Montenegro’s institutions must decide whether the country will continue to cater to privileged investors or work toward providing dignified housing for all.
We, the tenants, are not guests in our own cities. We are citizens, and we demand the right to a home, to security, and to a decent life, the statement concludes.
