Apartment prices in Montenegro, despite the economic crisis caused by the coronavirus, have increased by 10-30%, depending on whether you buy an apartment with finishing or under construction.
In particular, the data Monstat show that the average price per square meter of a new apartment in Montenegro in the second quarter was 1230 euros, which is 23,3% higher than in the same period last year.
Reasons for the rise in property prices in Montenegro
There are several reasons that led to the rise in apartment prices in Montenegro. One of the key ones is the rise in prices for building materials.
For this reason, investors were forced to raise the price per square meter of an apartment, and the growth was influenced by the fact that many investors during the time of the crown invested in serious projects, took huge loans, which they had to repay during the entire pandemic. In addition, sales were very weak, so they had to raise apartment prices.
The Montenegrin Chamber of Commerce (PKCG) also reported that the rise in prices for building materials has led to an increase in property prices.
According to PKCG, the business of construction companies was stable at one time, but due to the rise in prices for building materials, many companies resorted to increasing property prices.
“In connection with the imposed restrictive epidemiological measures, many factories for the production of building materials were closed, which led to a decrease in production volumes and, accordingly, an increase in cost,” explained PKCG.
As far as the coast is concerned, real estate purchases have started off quickly, especially on the first and second coastlines. Foreigners could hardly wait for the mitigation of measures in order to come, see the property live and make a purchase. However, in the overseas real estate agency MD Realty the purchase was often made remotely.
