Is the real estate market in Montenegro active in 2023?

Relevance of the real estate market in Montenegro in 2023

In this article, we intend to analyze the state of the real estate market in Montenegro in 2023 and examine the characteristics of two popular rivieras – Budva and Bar. Against the backdrop of the second quarter of 2023, positive changes in the market can be observed, as it has started to recover after a significant increase in sales volumes in 2022.

This increase was largely driven by the growing interest from tourists and investors looking to leave their countries after the pandemic-related lockdowns. Experts note that last year, housing prices in coastal areas, as well as in Podgorica, rose by almost 30%.

Changes in consumer activity

The activity of Russian-speaking buyers is decreasing, which is due to changes in the economic situation, particularly fluctuations in the ruble's exchange rate against the euro. However, it is worth noting that at the beginning of 2023, Russians significantly outnumbered other foreign investors in Montenegro's real estate market.

By mid-summer there is a downward trend in this interest and demand becomes more diverse, encompassing investors from the EU, Turkey and Israel.

Continuation of transactions with foreign buyers

Despite these fluctuations, transactions with participants from Russia, Ukraine, Kazakhstan, and Belarus are still taking place. Many foreigners see Montenegro as a new place to live, as obtaining residency here is relatively easy.

• In the first quarter of 2023, over 64,000 Russians registered for short-term stays in the country for up to 30 days.
• Many of them probably decided to stay by obtaining a residence permit.

Influence on local authorities

Local authorities have begun to express concern about the influx of foreigners, as the number of arrivals is becoming noticeable given Montenegro's population of 620,000 people.

However, such activity also has its advantages:

• The number of registered foreign companies has increased by 25%.
• Turkish businessmen are leading among these enterprises, while Russians hold the second position.

According to statistics, Turks more often prefer Budva for their business projects, while Russians are more active in Bar.

Budva and Bar Riviera

The Budva Riviera, encompassing well-known places such as Lastva Grbaljska, Budva, Bečići, and Sveti Stefan, smoothly transitions into the Bar Riviera, which includes Bar, Čanj, Sutomore, and Utjeha. The total length of the coastline of these two regions is approximately 75 kilometers.

Despite the fact that Budva traditionally attracts more tourists, interest in Bar is constantly growing, which is related to the comfort and convenience of this region.

The historical roots of Budva and Bar

Budva and Bar have deep historical roots dating back to ancient times. Both cities are proud of their rich historical heritage and unique architecture.

• In Budva, tourists are drawn to the atmosphere of the old town, which has carefully preserved traces of various eras beneath its fortress walls.
• The bar also offers many historical landmarks and is becoming increasingly popular due to its developed infrastructure and cozy beaches.

The relatively lesser-known status of Bar, combined with the increasing flow of foreign investors, makes it an attractive choice for those looking for opportunities to acquire property on the coast.

Conclusion

As a result, Montenegro, by providing affordable housing and a comfortable lifestyle, continues to be a focal point for both local and foreign investors. This makes it an attractive location in the context of the global real estate market.

The historic legacy of the old bar

In the ancient bar, one can find numerous traces of bygone times, including the ruins of old fortresses and temples from both the ancient and Venetian periods. A particular highlight is the ancient olive tree, which is over two thousand years old and is the oldest olive tree in Europe. Let's take a closer look at the unique features of each of these coastal towns.

Climate conditions

The climate in the two neighboring cities, Bar and Budva, is practically the same. Both are located in the subtropical zone and enjoy a fresh sea breeze from the Adriatic Sea. It is important to note that Bar has significantly more sunny days, which is why it, along with Ulcinj, is considered one of the sunniest places in Montenegro.

Relief and landscape

As for the terrain, Bar is located in a flat area, which facilitates the formation of wide, convenient streets. Budva, on the other hand, is partially situated in a mountainous region, making it difficult to walk in areas such as Podmaine, Seoce, and some villages like Becici, Ivanovici, and Stanisici. It is more convenient to get around by car here.

Budva beaches

The beaches in Budva are divided into several sections:

• Slavyansky Beach is one of the most famous.
• The Mogren-1 and Mogren-2 beaches attract many vacationers.
• The villages of the Budva Riviera also have wonderful swimming spots with crystal clear water.

Most of Budva's beaches are pebble and sandy-pebble sections; they are beautiful and comfortable, but can be crowded in high season.

The beaches of the Barskaya Riviera

The beaches of the Barskaya Riviera are also diverse and attractive. The most famous ones are:

• Beaches in the villages of Shushani;
• The beaches of Sutomore (with sandy and pebbly sections);
• Utieha (pebble);
• Good Water (pebble beach);
• The village of Chany (sandy-pebbly).

However, it is worth noting that the bathing areas in Bar are often covered with large pebbles and do not always meet comfort requirements.

Transport infrastructure

As for the transportation system, public transport in these cities is generally underdeveloped, but there are regular routes between the nearby settlements. For example, in the Budva area, there are bus routes:

• Connecting Budva with Becici;
• With the Rafailovichs and Pozhno, which allows you to get to Saint Stephen and back.

In Bar, the main route connects Old Bar with Čanj, passing through several stops, including the bus station in Sutomore and ending in the resort area of Čanj.

Proximity to airports

One of the main advantages of Budva isproximity to Tivat International Airportwhich is only 20 kilometers away. Meanwhile, the distance from Bar to both airports in Montenegro is:

• 47 km to Tivat;
• 55 km to Podgorica.

Nevertheless, a significant advantage of Bar is the availability of rail connections. Trains run regularly to the capital and the northern regions of the country, such as Kolasin, Mojkovac and Bijelo Polje. It is also possible to easily reach neighboring Serbia, as there are weekly trains from Bar to Belgrade, and an additional morning service is launched in summer.

It should be noted that Bar also serves as a port. Unfortunately, the ferry service to the Italian city of Bari was suspended a few years ago. However, there is no need to lose hope that this route will be restored in the future.

Transport advantages of Bar

If we compare public transport and convenience for drivers and pedestrians, then Bar definitely has advantages. In contrast, Budva suffers from high building density, which hinders road development and prevents improvements in the transport situation, for example, by creating interchanges.

Moreover, this resort sometimes becomes overwhelmed by streams of tourists, especially during the summer season – there aren't enough parking spaces, and the time spent in traffic on the way to the beach can be significantly prolonged. In contrast, the atmosphere in Bar is much calmer, as the number of vacationers is not yet that high.

Nevertheless, we cannot fail to mention that popular places on the Bar Riviera, such as Sutomore and Dobra Voda, attract many tourists.

Social infrastructure

As for the social infrastructure, both of these cities – Bar and Budva – offer quite comfortable living conditions throughout the year. Here you can find:

• Educational institutions, including Russian-speaking ones;
• Preschools
• Hypermarkets.

At the same time, Budva does not have a full hospital, only a polyclinic. While in Bar, there is both a polyclinic and a full-fledged hospital.hospital with a maternity ward.

Sports and an active lifestyle

Both settlements offer excellent opportunities for sports activities. There are many different sports facilities to suit all tastes, including:

• Stadiums;
• Fitness Centers;
• Gyms;
• Street workout training grounds;
• Tennis courts.

Trade and entertainment infrastructure

When it comes to shopping and entertainment infrastructure, both Budva and Bar have many supermarkets of different chains, as well as stores with a diverse range of products from building materials to clothing. In Budva there is one major shopping center - theTQ Plaza...while there is also a large complex located in the Bar...HDLThis complex includes:

• Food hypermarket;
• Clothing store Waikiki;
• Technomax home appliance store.

In addition, the city authorities also plan to create a new shopping center.

Entertainment and nightlife

In the entertainment sector, Budva undoubtedly holds a leading position, focusing on attracting tourists. Numerous restaurants and cafes along the waterfront are constantly filled with vacationers, and the nightlife here is always vibrant: clubs are open, and tourists enjoy evening strolls.

At the same time, Bar offers a completely different atmosphere. Although there are also plenty of cafes here, most of them close by midnight, even in the height of the summer season. For those who enjoy wild parties, Bar may seem less appealing; however, for those considering this city as a place for permanent residence with their family, it can be attractive for its tranquility and measured pace of life.

Russian-speaking community

Both cities have a significant number of Russian-speaking citizens, with a larger community in Budva. Locals communicate, find like-minded individuals, and create interest-based clubs.

Thus, both cities offer a variety of opportunities for living and recreation, but with a completely different atmosphere. The location, conditions for sports leisure, and the richness of cultural life in these resorts differ significantly, allowing everyone to choose the right place for vacation or permanent residence.

Leisure in local bars

At local establishments and bars, residents have the opportunity to enjoy their time by playing board games, attending karaoke, or participating in sports and dance events.

The functioning of government bodies

When it comes to the functioning of government structures, Budva and Bar represent two different municipalities, where certain differences in the work of government bodies can be observed.

Budva

In particular, Budva is facing issues related to the large number of incoming foreigners, which leads to delays in the process of issuing residence permits. Additionally, the paperwork for documents confirming property ownership, known assheets of immobilityFor new owners, it can take up to six months.

Some local police services in Budva sometimes limit the replacement of driver's licenses for foreigners to the duration of their residence permit, instead of the legally mandated ten years.

Bar

On the other hand, despite the fact that there are also queues at the Ministry of Internal Affairs in Bar for submitting residency documents, the bureaucratic procedures here are generally faster and more organized.

Cost of living

When considering the cost of living, one can notice that in Bar, where there is not as active a flow of tourists as in Budva, prices in cafes and shops remain more reasonable, without a significant markup for tourists. Now, the cost of renting accommodation in Bar will be...20%cheaper, which is an important factor for those considering a short term rental property.

Perhaps, Bar is gradually increasing its status as a tourist destination, but it still has a long way to go to reach the level of Budva.

Real estate market

When it comes to real estate, it should be noted that Bar is actively strengthening its position, getting closer to Budva. In Montenegro's tourist center, there are more housing options available, sales are at a higher level, and as a result, property prices are also rising.

Budva is already significantly built up, with many high-rise buildings, and although villas can be found, most of them are located in remote villages.

Construction in Bar

Bar is currently under active construction, and this process is carried out in accordance with predetermined urban planning plans, rather than spontaneously, as it was in Budva before. In this harbor town, both individual residential houses and apartment buildings with heights of up to11 floors.

Construction companies are focusing on increasing the height of buildings, following modern trends, which is causing both cities to continue to grow upwards. New villas and small houses are actively being built in the suburbs and remote areas of the municipalities.

Changes in construction

Previously the Budva Riviera was the leading region for new buildings as there was virtually no new construction in Bar, however recent years have brought changes and Bar is significantly accelerating its pace of development.

Budva and its appeal to buyers

In general, Budva is a more expensive city for both purchasing and renting living space, making it very attractive to the wealthy.

The Bar Riviera has long attracted the interest of Germans, resulting in a significant German community forming here. These buyers most often choose individual houses for living. Additionally, Russian-speaking clients and Polish citizens are actively considering real estate purchase opportunities in Bar, who typically aim to acquire apartments for vacation.

Housing prices

When analyzing housing prices, it can be noted that in Budva, due to the high popularity of the resort and the lack of land for development, property prices are significantly higher. On average:

• Apartments in the mid-price range:2500–3000 euros per square meter.
• Elite new buildings:from 4,000 to 7,000 euros per square meter.
• Housing in the surrounding area of the city:It can start from 2000 euros per square meter (high prices on the front line).

In Bar, on the other hand, housing in the secondary market or in new developments can be purchased for prices starting from 2000 euros per square meter. Apartments at the initial construction stage, that is, at the "foundation pit" stage, often cost less, which creates opportunities for investors to sell the finished apartments in just a year and a half at a more favorable price.

Popular housing options

Condos in hotel complexes, suitable for both living and renting, are a popular choice in Montenegrin resorts. Let's take a closer look at the luxury housing segment:

• Condo-hotel in the center of Budva:A luxurious 12-story property with a pool, spa, shops, and cafes. An 80-square-meter apartment costs approximately 480,000 euros.
• The club house is close to the center.Rarity due to high density of development. The apartments are offered fully finished and furnished. Prices start from 4000 euros per square meter.

Construction complexes

A large hotel complex is being built on the first line, which is considered one of the most ambitious projects on the Adriatic. It will offer a wide range of apartments starting from 175,000 euros. A large shopping and entertainment center with boutiques of well-known brands and a casino is planned to be created on its premises.

Average price level

In the mid-range segment, there is a low-rise residential complex called Como Residence, consisting of three buildings with a swimming pool.

• Location:on a hill, a 5-minute walk from the beaches and the harbor.
• View:The apartments offer a magnificent view of the old town, the sea, and St. Nicholas Island.
• Price:An apartment with an area of 60 square meters can be purchased for 169,120 euros.

In addition, a new residential complex with a swimming pool and underground parking has started construction just 400 meters from the waterfront in the center of Budva.

Unique apartment design and landscaping of adjacent areas

This publication pays special attention to the original design of apartments and the arrangement of outdoor areas. Currently, the selection of apartments in this region is quite impressive. For example, a studio is offered at a price123,000 eurosIn the popular area of Bečići, new housing is available starting at2500 eurosper square meter. For luxury properties located on the first line by the famous tiled beach, prices for furnished apartments range from4500 to 6000 eurosper square meter.

Elite condo-hotel Liko Soho

One of the most notable projects in Bar is a luxurious condo hotel.Liko Soho, which has its own marina and water park and is located just200 metersfrom the sea. There is an opinion that this object will become a landmark for the city, similar to how Soho City once did. Apartments with an area of74 square metersLiko Soho offers for347,000 eurosIn close proximity to this complex, in the areaPoplar treeThere is also an interesting investment project planned, which may later attract tenants. Here, prices start from2700 eurosper square meter.

Elite apartment hotel in the center of Bar

In the very heart of Bar, just in100 metersAnother luxury apartment hotel is being built away from the beach. This complex will feature both hotel rooms and full-fledged apartments. The project includes:

• spa area
• open and closed swimming pools
• gymnasium
• casino
• restaurants and cafes
• conference rooms
• a spacious underground parking lot

Apartments with an area of68 square metersthey are standing here306,000 eurosand the cost of the parking space is equal to30,000 euros.

Budget housing options in Bar

Now let's take a look at more budget-friendly housing options in Bar. A six-story building located just a400 metersfrom the sea and not far from the city center, being built according to modern strict standards. The cost of the studio with an area of25 square metersmakes up60,000 euros...while one bedroom can be purchased starting from...90,000 eurosApartments with two bedrooms start at151,000 euros.

Another available option is under construction – a new apartment building in the central part of Bar, which includes underground parking. The cost of a studio apartment measuring27 square metersis only48,744 eurosIn this new residential complex, located in350 metersfrom the sea, there is construction of housing, where prices start from1900 eurosper square meter. The client of this project is a well-known company in the market that emphasizes high construction quality.

The popularity of Budva and the drawbacks of the region

In summary, it can be noted that Budva remains a favorite destination for tourists. Primarily, accommodation here is purchased for short-term stays or for subsequent rental to tourists. High rental rates create excellent conditions for property owners during the resort season. The attractive features of Budva include magnificent beaches, a well-developed tourist infrastructure, and a vibrant nightlife. However, there are also some drawbacks:

• high housing prices
• underdeveloped social infrastructure (lack of a hospital)
• an excessive number of tourists, leading to constant hustle and bustle

Bar: a traditional city with prospects

The bar is a traditional city that is just beginning to develop its infrastructure and fill up with iconic hotels to attract tourists.

Conclusion

In conclusion of this article, I would like to summarize and share my impressions of the real estate market in Montenegro and the charm of the two rivieras that seem to complement each other. The market is indeed showing signs of stabilization, which is encouraging. After a vibrant sales boom in 2022, when Montenegro attracted the attention of investors, the situation began to change. The increase in housing prices and high investments from major groups of buyers, especially from Russia and EU countries, confirm that Montenegro continues to be an attractive destination.

Despite the decline in interest from Russians at the beginning of summer due to economic factors, the flow of foreign investors has not dried up. It is important to note that every guest who comes to this amazing country leaves their mark not only on the economy but also on the cultural life of the region. The real revival in the sector of foreign companies further emphasizes that Montenegro, more than ever before, is becoming an international center for business and living.

Comparison of Budva and Bar

Comparing Budva and Bar, one can notice that each city has its own unique atmosphere and characteristics.

• BudvaIt attracts tourists with its historical wealth and picturesque beaches.
• Barless popular, offers tranquility and comfort, as well as a rich history.

The competition between these two rivers is beneficial for both the locals and the tourists.

Prospects of Montenegro

Finally, I am deeply convinced that anyone who decides to visit Montenegro will definitely find something for themselves here. Whether it be:

• historical monuments,
• blue water beaches,
• or a cozy corner to live in — the choice is quite large.

Montenegro continues to develop.In my opinion, bright prospects await her ahead, both for investors and for tourists. I am confident that in this way, this country will maintain its attractiveness on the international stage, and we, as guests, will see many new opportunities for leisure and business.