Real estate prices in Montenegro are rising: the cost per square meter has increased by about 300 euros over the year, and foreigners are to blame.

Real estate prices in Montenegro reached a record high last year, thanks to the demand from a large number of foreigners. Compared to the beginning of last year, the cost per square meter has increased by about 300 euros and now averages around 1600 euros. Despite the fact that demand, according to real estate agents, is currently not increasing, a decrease in the cost per square meter is not expected.

According to the data from the statistical office in September, the average price per square meter for new buildings in Montenegro was 1,647 euros. The average price per square meter in 2019 was 1,200 euros, which is 450 euros less than stated in their latest report. This means that currently, an apartment of about 50 square meters costs 25,000 euros more compared to a few years ago.

The statistical office recently reported that in 2023, about 50,000 more apartments were registered than in the last census in 2011. Rental prices have also not remained stagnant, increasing by several hundred euros during the same period.

The protection of current prices is quite high for local residents, but demand also determines the price, and a large number of foreigners find this price more than acceptable. In any case, to protect local buyers, the real estate association is already working on a law that regulates the market, and it remains to be seen how the government will act in this area, said Popovich.

The main "culprits" behind the huge rise in real estate prices in Montenegro in recent times are foreigners, primarily Ukrainians, Russians, and Turks. According to agents, in recent months, there has been a decrease in interested buyers from Russia and Ukraine, but the number of Turks, French, and Germans looking to buy apartments is increasing.

As real estate agent Jasmina Popović told "Novosti," there is no expectation of a price drop in the near future, but a sharp increase is also not anticipated. "A large number of foreigners who came to Montenegro in the past period, and we are talking about tens of thousands, want to invest their money in real estate. As long as there are foreigners and their demand, prices will remain high. There is still a significant number of interested Ukrainians and Russians, but not at the volume we have been accustomed to over the past two years. Currently, the largest number of Turkish citizens are looking for real estate," says Popović.

Comparing current prices with those from last year, it is noted that the difference is about 300 euros for the cost per square meter and for rent, which has increased from 100 to 300 euros. "Specifically for Podgorica, the price per square meter is around 1800 euros. Of course, the price depends on the location, size, and amenities, and can reach up to 2800 euros. As for renting apartments, the monthly rent for a one-bedroom apartment ranges from 350 to 500 euros, again depending on the location, whether it's a new building or a secondary property, and the amenities."