Interest in real estate in Montenegro is growing every year. According to the Construction Committee of the Chamber of Commerce, demand now exceeds supply, which is the main reason for the rapid increase in price per square meter in all cities. Real estate agencies confirm the price surge. Given these market conditions, only those with thick wallets can afford to buy an apartment.
Although buildings seem to spring up on every corner, demand remains significantly higher than supply.
Market pressures and inflation
“There is demand, apartments are being sold, but there aren’t enough on the market. I believe the main problem is inflation—currency inflation—and then the insufficient supply of apartments to meet demand, especially from foreign buyers. At these prices, the local population can hardly afford an apartment,” said Mile Grujić, Chair of the Construction Committee of the Chamber of Commerce.
The situation is further complicated by interest rates, which have accompanied the rise in price per square meter.
“It’s important to note that last year apartment purchases were made via loans, and interest rates increased, which certainly didn’t help those wishing to buy a home,” added Radulović.
What can be done?
In order for Montenegrin citizens to afford apartments, government action is necessary:
- Increase the supply of apartments
- Regulate interest rates in banks
- Establish state programs—similar to the “1000 plus” model—to subsidize part of the cost under favorable terms
“These measures would help stabilize apartment prices,” said Grujić.
However, such a forecast does not yet exist:
“It seems we disprove everything: the market is small, and any significant foreign capital inflow reflects in higher real estate prices,” Grujić explained.
Price trends by region
Prices per square meter used to increase linearly from north to south. But that’s changing. In addition to high demand in Podgorica and on the coast, Kolašin has become the most popular market.
“Prices range from €1,500 to €3,000 per square meter,” Radulović stated.
“In Kolašin, the price reaches up to €3,000 per square meter,” said Tiho Rakočević from a real estate agency.
For now, everyone is waiting for the price surge to stop—but according to TVCG sources, that seems unlikely. The one certainty is that this situation will continue as long as foreigners continue buying high-end apartments. And it must be acknowledged—foreigners are literally sweeping up all the real estate.
