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2024 is a promising time to consider buying a home in Montenegro. With a growing economy, favorable market conditions, and the allure of its natural beauty, investing in property in this Balkan gem offers both financial and lifestyle benefits. Whether for investment, vacation, or relocation, Montenegro’s real estate market presents a compelling opportunity for buyers in 2024.

Montenegro’s Economy is on the Up

Montenegro’s real estate market is rising, offering a chance to benefit from its growing economy. It is poised to rival major European tourist coastlines like the French or Italian Riviera. The limited availability of short-term accommodations is a challenge for tourists but a boon for investors, guaranteeing attractive passive income from rented apartments. 

Montenegro’s confident local businesses signal a buoyant economy, likely leading to more jobs and higher incomes. This upbeat outlook drives up property demand, making it an excellent time for investors to profit from rentals and potential property value appreciation.

Inflation in Montenegro

The IMF forecasts Montenegro’s inflation rate to be 16.7% over the next five years, averaging 3.3% annually. This expected inflation makes it an excellent time to consider buying property for later resale at a profit.

High inflation can benefit property investors because:

  1. Property values tend to rise, leading to potential capital appreciation.
  2. Inflation can result in higher rental rates, increasing cash flow.
  3. It reduces the actual value of debt, making mortgage payments more affordable.
  4. Real estate can hedge against inflation, preserving investment value.
  5. Diversifying into real estate provides stability during inflationary periods.
  6. Tax advantages, like depreciation deductions, can offset inflation’s impact.

Local Population is Becoming More Affluent

When buying real estate, consider population growth and GDP per capita because:

  • A growing population means more potential tenants or buyers.
  • Higher GDP per capita indicates a greater ability to pay for housing, potentially increasing property value.

In Montenegro, GDP per capita has grown by 6.7% over the last five years, a positive trend. This growth suggests that buying a seaside property in Kotor for rental purposes could be lucrative, as more tenants with sufficient funds are likely to seek such properties. The rental demand in Montenegro’s cities like Podgorica, Budva, Kotor, or Tivat may increase in 2024.

Tourism and Rental Potential

Montenegro’s growing tourism industry presents an opportunity for property buyers to generate rental income. The country’s popularity as a travel destination, particularly along the stunning Adriatic coast, ensures a steady stream of tourists seeking accommodation.

How much does it cost to buy a home in Montenegro?

Property prices in Montenegro vary widely depending on the location, size, and property type. In popular coastal cities like Budva, Kotor, or Tivat, prices can range from €2,000 to €5,000 per square meter for apartments and even higher for luxury properties or those with sea views. Inland areas and smaller towns generally have lower prices, with some properties available for under €1,000 per square meter. It’s always best to check current listings or consult with local real estate agents for the most accurate pricing information.

Can I get a Montenegrin residency or citizenship by purchasing real estate?

Yes, Montenegro has a residency program for real estate investors. Buyers who meet particular requirements, such as property value and investment amount, can apply for residency, offering an additional incentive to global investors. However, the Montenegrin citizenship scheme by property investment ended on December 31, 2022. Purchasing real estate no longer qualifies you for Montenegrin citizenship.

Are there additional costs to consider when you buy a home in Montenegro?

When buying a home in Montenegro, there’s a 3% transfer tax in both the primary and secondary markets, but the developer pays it in the primary market. Notary fees range from 1000 to 2000 euros, and court interpreter fees are 50 to 70 euros. Annual property ownership tax is 0.25-1% of the property’s cadastral value. Renting out a property incurs a 9% capital gains tax on overall earnings.

How much does it cost to maintain property in Montenegro?

The cost of maintaining a property in Montenegro varies based on the property’s location, size, and condition and the level of services and amenities you wish to keep. However, here is a general idea of some typical costs:

  1. Property Tax: The annual property tax in Montenegro ranges from 0.25% to 1% of the property’s cadastral value, depending on its location.
  2. Utilities: Monthly utility costs for water, electricity, heating, and waste disposal can vary but are typically around €100-€200 per month for an average-sized apartment.
  3. Maintenance Fees: If you own an apartment in a complex with shared facilities (such as a swimming pool, gym, or gardens), you may need to pay monthly or annual maintenance fees. Depending on your property’s facilities and size, these can cost between €50 to €200 monthly.
  4. Insurance: Property insurance costs can vary but are typically around €100-€200 per year for an apartment and higher for a house.
  5. Property Management: If you employ a property management company to oversee your property, you may incur additional costs, typically around 5%-10% of the rental income.
api-investment-13 Must-visit Kotor Attractions- Unveiling a Legendary Destination -3

Can foreigners buy land in Montenegro to build property?

Yes, foreigners can buy land in Montenegro to build property. However, certain restrictions and regulations apply to foreign land ownership, especially agricultural and forest land. Foreigners can buy land plots in Montenegro following the same procedures as locals. Individuals can purchase plots up to 5,000 m2. For plots larger than 5,000 m2, you must open a company to make the purchase. It’s advisable to consult with a local lawyer or real estate expert to understand the rules and requirements for purchasing land in Montenegro as a foreigner.

Can a foreigner get a mortgage in Montenegro?

Yes, mortgages are available to foreign nationals in Montenegro through the country’s banking system. Non-residents can apply for property loans, though they must meet certain conditions and requirements. Banks such as Crnogorska Komercijalna Banka (CKB), Hipotekarna Banka, and Erste Bank are among those in Montenegro that offer mortgages to foreigners. It is best to contact these banks directly for detailed information on their offerings and requirements. 

Mortgage rates in Montenegro for a 20-year term typically range from 3% to 7%, providing borrowers with favorable conditions for obtaining housing loans. We suggest checking the historical Montenegro Bank Lending rate to understand your future payments better if you’re considering a variable interest rate loan.

RoyalTownKotor (1)Montenegro Real Estate Investment

Are there installment options for buying Montenegro real estate?

Yes, if you buy property directly from the developer off-plan before the completion of the project. For example, our long-term, flexible, and customized payment plans with 0% interest at Royal Town Kotor allow you to buy a home in Montenegro without breaking the bank. We even offer attractive prices for off-plan pre-sales. Our project features a range of luxury apartments for sale in Montenegro, ensuring there’s an ideal option for every budget.


Buy a Home in Montenegro with API Investment

As API Investment, we have been developing properties for sale in Montenegro’s most desired locations since 2017. We proudly present our project at Royal Town Kotor, the epitome of luxury living just 12 minutes from a private harbor boasting gourmet restaurants and shopping. These serviced apartments offer unrivaled views of the Adriatic Sea and mountains, setting a new standard for international luxury real estate in Montenegro.

When you buy a home in Montenegro through us, you can enjoy exclusive amenities such as an infinity pool, wellness facilities, and a private beach club, all within a secure, 24-hour-managed property. Whether you seek a superb location, a holiday retreat, or a hassle-free income, Royal Town Kotor delivers. Plus, with an international airport just minutes away, convenience is at your doorstep.

Discover Montenegro’s natural beauty and economic potential by investing in a home in Kotor. Contact our advisors today to learn more about how to buy an apartment in Montenegro.

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