Apartment prices in Montenegro at record level: Up more than 40 percent in two years

The prices of apartments in Podgorica continue to rise despite unfavorable credit conditions and rising living costs. The boom that started in the second half of last year continues its upward path this year, reaching record highs in the third quarter, says Darko Djikanovic, real estate analyst at Adriatic Appraisal.

According to him, the current average price of a one-room apartment in Podgorica is 1,720 euros per square meter, while last year in the same period the average price was 1,360 euros and in 2021 it was 1,200 euros. This represents an increase of more than 40 percent in just two years. High demand, high inflation and the inflow of foreign capital have contributed to this sharp rise in prices per square meter.

Of course, prices vary mainly depending on location, apartment size and quality of construction. For example, in the area of City Quart and surroundings the average price of one-room apartments is 2,150 euros per square meter, in the center you have to pay 1,950 euros, and in the area of Perko Morace - 1,900 euros.

Džikanović notes that supply has been increasing over the past year, indicating an increase in housing construction after a long period of inactivity caused by the pandemic. He also notes that these trends in the construction industry are bound to have an impact on narrowing the gap between supply and demand, and due to the high activity in the market and the significant inflow of foreign investment in real estate, it remains unknown whether prices will stabilize in the near future.

According to him, tracking market trends in Montenegro is hampered by the lack of real estate price registers and official market reports, as is the case in countries in the region where public information is available on the number of transactions, prices concluded and the total value of the market. He believes it is necessary to establish registers and tracking systems for relevant data so that decision makers, companies, investors and citizens can always assess the situation and make the right decisions, which ultimately contribute to our economic development.

According to Monstat data, the average price per square meter of real estate in new buildings in Montenegro in the second quarter of 2023 was 1,500 euros, which is 9 percent higher than at the same time last year. During the same period, the average price of an apartment in a new building in Podgorica increased by 13.5 percent to 1,581 euros. At the end of June, the average price per square meter of an apartment in a new building on the coast was 1,413 euros, in the central region it was 714 euros, while in the northern region the average price per square meter of an apartment in a new building was 1,280 euros.