Why is Petrovac becoming attractive to foreign real estate buyers?

The appeal of Petrovac

In this article, we will explore the appealing aspects of the real estate market in Petrovac, highlighting the reasons why foreign citizens choose this part of Montenegro, as well as the opportunities that arise for Russians when purchasing property in this picturesque location. It is worth noting that Petrovac is a wonderful place for vacation, while Budva is more often chosen for permanent residence.

General information about Petrovets

Petrovac na Moru, pronounced with the stress on the first syllable, is located on the stunning Budva Riviera. This cozy little town is just seventeen kilometers from Budva and twenty kilometers from Bar, which is an important port in the region. The trip from Montenegro's international airports, such as Podgorica and Tivat, takes only about half an hour. An important transport artery, the Adriatic Highway, runs just above the town, connecting many coastal settlements.

Population and atmosphere

Petrovac is a small settlement with a population of about one and a half thousand people, which creates a unique atmosphere of seclusion and tranquility typical of small resort towns. This amazing corner is distinguished by its unique nature and breathtaking landscapes. Petrovac is located in a picturesque mountainous area, by the shore of a small cozy bay that resembles a horseshoe. Like many other resorts on the Adriatic coast, it is famous for its diverse vegetation – coniferous trees, olive trees, and various grape varieties grow here.

Natural attractions

Two tiny islands, Katich and Holy Week, are located in close proximity to the coast:

• One of them has a lighthouse.
• In another place, you will find a small church that, according to local legends, protects sailors from dangers.

Outdoor enthusiasts can go on excursions to these natural attractions, as well as rent a kayak, catamaran, or boat to enjoy a trip to these exciting places.

Historical aspects of Petrovets

As for the history of Petrovac, the first mention of the Slavic population in this area can be found in the "Chronicle of Priest Dukljanin," dating back to the 12th-16th centuries. However, the development of Petrovac began much earlier, as evidenced by numerous artifacts and remnants of Roman structures found in the region. For example, colorful mosaics dating back to the 3rd and 2nd centuries BC can be seen in the local museum, which is housed in an ancient building that once belonged to a Byzantine fortress.

Petrovac Fortress

The fortress became an important historical symbol and linked its name to a small settlement that emerged nearby. In the 16th century, Petrovac came under the control of the Byzantine Republic, which led to the construction of a defensive complex known as Kastel Lastva. Since then, this place has been used for various purposes, including warehouses, prisons, and even hospitals, preserving many stories, although only a small part of the original buildings has survived to this day.

Modern features

Currently, the ancient fortress is home not only to a museum but also to a restaurant with a nightclub — the only one of its kind in Petrovac. By the early 20th century, the population of this small town was just over three hundred people, but it soon became a well-known resort thanks to its picturesque landscapes and tranquil atmosphere. Therefore, it is not surprising that more and more foreigners, including Russians, are interested in purchasing property or organizing vacations in this area.

Conclusion

Thus, Petrovac is an excellent place to live or relax, making it an attractive destination for people from all over the world.

Historical context

In 1918, the Budva Riviera became part of the Kingdom of Serbs, Croats, and Slovenes, serving as an important region under the administration of Peter I Karađorđević. In honor of this ruler, one of the settlements was renamed, resulting in the new name for the town - Petrovac.

Sights of Petrovac

When it comes to attractions, in addition to the mentioned Byzantine fortress and structures on the islands of Katić and Sveti Nedelja, Petrovac also features several Orthodox churches that were built in the 14th-15th centuries. Among them, the following stand out:

• Church of Saint Vida
• Church of St. Elijah
• Church of St. Thomas

Just 1.5 kilometers from Petrovac is the village of Buljarica, where the Gradiste monastery complex is located. On its grounds, you can see three ancient churches. This place is worth visiting both on group tours and individually, to enjoy the unique medieval frescoes and the stunning panoramas of the coastline.

Ancient monasteries

One of the significant ancient monasteries in this region is Rezevici, located relatively close to Petrovac. This historical complex, although it suffered during World War II, has been restored with great respect for its historical value and now attracts tourists with its architectural beauty and spiritual atmosphere.

Architectural landmarks

In the north of Petrovac, heading towards Podgorica, in the village of Novoselje, you can visit another interesting architectural landmark – the Church of the Holy Cross, built in the 14th century. This church is an example of medieval architecture and serves as a reminder of the region's past.

The beaches of Petrovac

Speaking of the beaches in Petrovac, it's worth highlighting two of the most popular ones – Central and Lučice:

• Central beach:Guests are delighted by the long promenade, lined with cafes, restaurants, and souvenir shops, creating a beautiful atmosphere for a resort getaway.
• Luchice Beach:Surrounded by green cliffs, it offers a more peaceful and picturesque getaway.

The walk from Central Beach to Lucice takes some time, but you can always use the road. In May 2022, Lucice Beach was awarded the prestigious environmental accolade – the Blue Flag.

Secluded beaches

For those who prefer solitude, several secluded beaches are accessible via winding paths along the sea, often passing through picturesque tunnels in the cliffs. Bold travelers who dare to take these routes will be generously rewarded with stunning views.

Social infrastructure

The infrastructure in Petrovac largely corresponds to that of a typical resort town and is evident in the seasons. In the summer, the town comes alive, filled with tourists, while in the winter, life here comes to a standstill: many establishments, including cafes and shops, close down, and the local market ceases operations.

Services for local residents

Social services in Petrovac are primarily focused on the needs of local residents. The city has the following services:

• elementary school
• kindergarten
• polyclinic
• library

It should be noted that the infrastructure here does not provide for year-round housing for foreigners. Typically, larger cities in Montenegro are chosen for living during the warmer months, where there are more extensive opportunities for living and a variety of services available.

Choosing a vacation spot

Choosing a vacation spot is a matter that many families pay attention to, especially those with children. In Budva and on the island of Sveti Stefan, there are both English-speaking and Russian-speaking educational institutions, which significantly expands the options for parents.

The calm atmosphere of Petrovac

It is important to note that even during the peak tourist season, Petrovac maintains a calm atmosphere for family vacations. The nightclub mentioned earlier closes at midnight, which emphasizes the measured pace of life in the town, reflecting the lifestyle of its local residents. Young people generally choose other resorts in Montenegro for their evening entertainment.

Transport infrastructure

When it comes to transportation infrastructure, there is no public transport in Petrovac, as walking or taking a taxi is more than sufficient for getting around this small town. Those planning to rent a car should be aware that there are only three parking lots available in Petrovac, which creates problems during the high tourist season when the number of cars significantly increases.

Bus station

A positive aspect is the presence of an international and intercity bus station. Buses that connect Bar with Budva, as well as Ulcinj with Kotor, stop in this city. Departures towards Kotor occur every hour, while buses to Budva and Bar run every thirty minutes.

Real estate market

The real estate market in Petrovac is mainly represented by apartments and small hotels, among which you can also find more expensive private houses, although their number is significantly lower compared to, for example, the popular Bar Riviera. Petrovac is divided into several distinct areas:

• Central area with a beach
• The Luchitse District
• The territory of the bus station
• A small village called Prievorac, located near the beach of Lučice.

Customer preferences

Buyers are usually more interested in apartments located in close proximity to the sea, as this choice contributes to more successful rentals. However, there is a high density of construction in the first and second lines of housing, which makes these areas quite crowded.

Housing prices in Petrovac

The prices of housing in Petrovac are determined not only by its location but also by the characteristics and class of the properties themselves. For example, apartments built during the Yugoslav era often have lower price points. In contrast, new developments with amenities such as a swimming pool, parking, and panoramic sea views naturally cost more.

It is impossible not to emphasize the importance of having parking, as finding a place for a car in the city during the summer becomes a real problem, making it an important criterion for modern residential complexes.

Cost of housing

In Petrovac, the price per square meter ranges from 1400 to 3500 euros, with average real estate prices falling between 1700 and 2000 euros per square meter. These rates are lower than in the centers of cities like Budva and Tivat, where prices reach 2000-2500 euros per square meter.

In Bar, prices range from 1300 to 1600 euros per square meter. For example, a one-bedroom apartment in a modern building can cost around 80,000 euros. However, there are also more attractive offers on the market: recently, one local agency listed a one-bedroom apartment (48 sq. m) for 68,000 euros, which is only 1400 euros per square meter. This offer is significantly below the average market price, and real estate experts note that small studios priced at 50,000 euros, which were put up for sale in early spring, were sold out in just a few days.

Market situation analysis

According to the Montenegrin publication Bankar, in May 2022, the average cost per square meter of housing in new buildings in Podgorica was:

• 1265 euros in Podgorica
• 1445 euros in coastal areas
• 612 euros in the central regions
• 1352 euros in the north of the country

Analysts from the Investitor website emphasize that housing prices in Montenegro have significantly increased and continue to rise, which is attributed to both the rising costs of construction materials (by 40-200%) and the high demand from foreign buyers, including Russians, Ukrainians, and Belarusians.

Against the backdrop of a shortage of listings in the market, sellers are not willing to lower prices. It should also be noted that in popular areas, such as the central part of Budva and Bečići, restrictions on new construction have been introduced, which only exacerbates the housing shortage.

Why do foreigners choose Petrovac?

Why does Petrovac attract foreigners? Many come here as tourists and fall in love with its unique atmosphere. The azure waters, picturesque cliffs, abundance of greenery, and charming houses create the unique beauty of Montenegro, particularly Petrovac, which captivates the hearts of travelers.

Lovers of a quiet getaway, tired of noise and vibrant nightlife, find exactly what they have been looking for here.

Investment attractiveness of real estate

The purchase of real estate in Petrovac is often seen by foreigners as a good investment decision. Over the past few years, the price per square meter in this area has increased by 10-15%, and experts predict further growth in housing prices. All these factors create attractive conditions for real estate investments, which, in turn, makes Petrovac an even more interesting option for foreign investors.

The cost of renting an apartment

Renting a one-bedroom apartment in Petrovac during the summer usually costs between 50 to 70 euros per day. In the winter months, the situation changes: it's much harder to find tenants, and in some cases, discounts can reach up to 50%.

Interest of Russians in real estate in Montenegro

Many Russians are interested in buying an apartment in Petrovac. Russians have long been active participants in the real estate market in Montenegro. According to the latest data from local experts, there has been an increase in interest from Russian citizens in the last two to three months, as they begin to see Montenegro as an attractive country for migration.

Conditions for obtaining a residence permit

As for those who want to obtain residency in this country, the conditions are quite lenient. To apply for a temporary residence permit for one year, it is enough to purchase any real estate, and there are no restrictions on the minimum purchase amount. In comparison, Turkey has strict requirements regarding the value of properties that allow foreigners to obtain residency.

The "citizenship by investment" program

The active "citizenship by investment" program continues to operate until the end of 2022. To participate, one must meet the requirement of purchasing real estate worth at least:

• 450,000 eurosin the south of the country;
• 250,000 eurosin the north.

Russians and Belarusians can take advantage of this opportunity under certain conditions, such as not being on sanctions lists and not holding the status of a politically significant figure. It is important that all potential buyers undergo thorough checks, including compliance and due diligence.

The process of buying real estate

If a foreigner decides to buy an apartment in Montenegro, they will need:

• Foreign passport;
• The sum equal to10% of the total property valuefor making the initial payment.

Additionally, if the transaction is made with an individual, the buyer needs to pay.3% taxIn a real estate transaction, owners are also required to pay property tax and a tourist tax annually, which is mandatory for all owners.

Mortgage lending and financial difficulties

Purchasing real estate in Montenegro faces some restrictions in the area of mortgage lending. A common practice is to arrange a mortgage in the country of residence, for example, in Germany, and then use the funds obtained to buy an apartment in cities like Budva, Tivat, or Petrovac.

Difficulties for Russians in investing

Currently, the main challenge for Russians wishing to invest in foreignreal estate is conducting financial transactions. Russian citizens without a residence permit in Montenegro face difficulties when trying to open accounts in local banks (although some may make exceptions for apartment buyers). As a result, Russians are forced to look for alternative options to complete the transaction. One of the simplest solutions is to find a seller from Russia and settle the payment in rubles.

Conclusion

The conclusion presented in the article summarizes the examination of the unique and picturesque town of Petrovac, which, despite its modest size, boasts an amazing array of historical and cultural attractions. After a thorough analysis, I have come to the conclusion that Petrovac is not only a resort destination for relaxation but also a place with a rich history, vibrant cultural life, and unparalleled nature.

I have considered why foreigners are increasingly choosing this city for temporary or permanent residence. Petrovac attracts them not only with its beautiful beaches and picturesque landscapes but also with a calm atmosphere that allows them to escape the hustle and bustle of big cities. I found it important to note that buying real estate here has become an accessible opportunity for Russians and other foreign citizens.

Seasonal features

Nevertheless, it is worth noting the seasonality of life in Petrovac. In the summer, the town fills with tourists, but in the winter, it transforms into a quiet place where time seems to stand still, and most establishments close down. This circumstance can be a decisive factor for those considering moving to Petrovac for permanent residence.

Pros and cons

Undoubtedly, Petrovac has its pros and cons, but for many, it remains a true gem. It is a place where one can enjoy the atmosphere of a small yet very cozy coastal town, its history and natural beauty, as well as the opportunity to become part of local life, even if it doesn't involve permanent residency.

I hope this article helps readers better understand what Petrovac has to offer and makes their choice more informed.