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Looking for a house in Montenegro

Looking for a house in Montenegro

Looking for a house in Montenegro

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International Real Estate

In the historic region of Kotor Bay, demand and prices are rising as the country attracts foreign buyers. A stone villa in the mountains of Montenegro - $3.5 million (€3.1 million). This four-bedroom stone house is located in Dobrota, a small town near the historic center of Kotor, one of Montenegro's most popular tourist destinations. It is part of a coastal area with houses and small restaurants on the shores of Kotor Bay, a flooded river canyon at the foot of the limestone cliffs of Mount Lovcen.

In addition to the four-level main house, built in the early 1800s, the property also has three studio apartments, each with its own kitchen and bathroom. During the summer season, the house and apartments are rented out for 1,000 euros ($1,120) a day, usually for events and wedding parties, said Ivana Vukicevic, real estate portfolio manager at Montenegro Prospects, which is marketing the house.

The total area of the plot is 330 square meters, including a garage with a wide roof terrace. The public mooring in front of the house, across a small road, has a pier on the waterfront.

The first mention of the villa dates back to 1808

The first mention of the villa dates back to 1808, Ms. Vukicevic said. The villa was abandoned from 1941 until 1996, when its current owner bought and restored it, adding an annex on the back of the house. Two studio apartments, which have separate entrances, are part of the annex, while a third apartment is in the attic of the main house.

The house is entered through an enclosed courtyard surrounded by a stone wall. The main floor features a living room with fireplace, modern eat-in kitchen, laundry room and bathroom. The kitchen has granite countertops and custom cabinets and a door leading to an ivy covered patio with sink and BBQ.

Stone staircases lead to the second floor

Stone stairs lead to the second floor, where there is another living room with a dining area, fireplace and access to a balcony overlooking Kotor Bay and the Orjen Mountains. Some furniture is included in the price, but the owner leaves a few antique pieces, Ms. Vukicevic said.

The third floor has four bedrooms and two bathrooms

The third floor offers four bedrooms and two bathrooms. Two of the larger bedrooms offer panoramic views of the bay. The master bedroom has an en-suite bathroom and the other bedrooms share a bathroom.

Of the two apartments in the annexe, one has a small kitchenette

Of the two apartments in the annexe, one has a small kitchen, living room, bathroom and bedroom. The other is a duplex apartment with a living room, bathroom and kitchen on the third floor and a bedroom on the fourth floor.

The house is about three miles from the medieval fortress town of Kotor, which is a UNESCO World Heritage Site and is known for its narrow winding streets, old churches and ancient walls stretching up into the hills. The town of around 14,000 people has a diverse nightlife with clubs and restaurants, as well as a renowned population of stray cats.

Lovcen National Park, with mountains reaching over a mile high, is located about an hour west by car

Lovcen National Park, with mountains reaching over a mile high, is located about an hour west by car. The nearest international airport is in Tivat, just 15 minutes from the house. Podgorica, the capital and largest city in Montenegro, is served by Podgorica Airport, which is about a 90-minute drive east.

Market overview

Property sales and prices have been rising in recent years, mainly due to an increasing number of foreign buyers, agents say. Foreign investor interest has been driven by Montenegro's accession to NATO in 2017, an increase in direct flights and the use of the euro as the country's main currency.

In addition, new properties with construction and amenities “based on European standards of expectations” are attracting more and more buyers,” said Lejla Čalić, director of real estateagency and consultancy Resido Montenegro. “The market is increasingly offering luxury properties at attractive prices compared to the cost on the French coast, for example, or even on the Spanish coasts,” Ms. Čalić said.

But the expansion has had a price: in 2017, UNESCO, fearing the negative impact of too much construction and increased tourism, pressured the Montenegrin government to impose a temporary moratorium on new construction in the Kotor Bay area.

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As a result of the slowdown in construction, prices have increased by 20 to 25 percent, said Daniela Cecavac, an agent with Re/Max Montenegro. The market is controlled by secondary home buyers, she added, “who just fall in love with the place.” Other buyers are looking for investment properties with the option to rent within a year, said Kieren Kelleher, chief executive of Dream Estates Montenegro, an affiliate of Savills. Sales of “premium” properties in the top end of the market have risen about 10 percent in the past year, Mr. Kelleher said, “on the back of strong demand and continued interest from a wide range of investors.” There is no official national data on sales and prices, and the market can be confusing for buyers, agents said. “You could have two complexes next to each other and one is twice the price,” said Mark Wild, a principal at MontenegroReal Estate.

Who buys in Montenegro

Foreign buyers make up 80-90 percent of sales in Montenegro, agents say. The market used to be dominated by Russian buyers, but sales to Russians “pretty much stopped” after government sanctions were imposed over Russia's annexation of Crimea in 2014 and ongoing turmoil, Mr. Wild said.

Since then, more Turkish buyers have entered the market, agents said. Mr. Kelleher said 35 percent of his clients are from the Middle East and Turkey. Buyers from the Commonwealth of Independent States and Russia are still his clients, he said, but now make up only about 15 percent of sales.

Kotor Bay, where tourists arrive on cruise ships, has seen a significant increase in the number of British buyers in recent years, Ms. Cetsavac said, as well as more buyers from Germany and France.

The basics of buying

Buying a house in Montenegro is “a simple and quick process,” Ms. Cetsavac said. There are no restrictions for foreign buyers, except for agricultural land. A notary handles the documents and details of the transaction, but agents recommend hiring a lawyer to oversee the transaction. “Even though there is a public notary system, we still recommend the services of a qualified lawyer to verify the property and title and manage the process,” Mr. Kelleher said.

After contracts are signed and notarized and payments are made, it usually takes 10-15 days for the land registry to issue a certificate of ownership,” Ms. Tzetsavac said.

Websites

Government of Montenegro: gov.me

Kotor's universal website: whc.unesco.org

Montenegro travel guide: visit-montenegro.com

Languages and currency

Montenegrin, Serbian, Bosnian, Albanian, Croatian; Euro (€1 = $1.12)

Taxes and fees

A 3 percent transfer tax is charged on the purchase of secondary real estate. Additional expenses, including fees for lawyers and notaries, can amount to another 1 percent of the sale price, Mr. Kelleher said.

The annual tax on this property is about 500 euros ($560) a year, Ms. Vukicevic said.

Contact

Ivana Vukicevic, Montenegro Prospects, 011-382-32-322-489; montenegroprospects.com

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