How and why to buy luxury real estate in Montenegro

For more than a decade Montenegro has become a popular destination not only for vacation, but also for investment and real estate purchase. Thanks to its pleasant climate, renowned hospitality, great newly opened restaurants and unique natural beauties, which are few and far between in the world, more and more foreigners are discovering the charms of Montenegro. He who comes, always comes back - this is the proverb and "recipe" describing Montenegro; and there is nothing better than returning to what belongs to you. That is why more and more foreigners decide to take advantage of favorable payment terms and choose a paradise corner, perhaps in the most beautiful European country.

In Montenegro you can still buy luxury real estate cheaper than in some "famous" destinations, you will always find a partner here to help you realize your dreams, you will enjoy the extra amenities for which Montenegro is designed not only for vacation, but also for life. Who are the buyers of real estate in Montenegro, where do they come from and what is most important to them? This is perhaps best evidenced by the latest data on the level of foreign direct investment in the real estate sector in Montenegro.

"Data on foreign direct investment shows that Serbian citizens have invested 78 million euros in real estate in Montenegro in 2023 alone. Russia is in second place with 56 million euros, and the third place is "shared" by Germany and Turkey with 51 million euros. The list also includes citizens of the United States, Ukraine, Switzerland, United Arab Emirates, Czech Republic and Austria. Apart from this, as we mentioned, there is another great reason to buyreal estate in this little gem of the Mediterranean, and that is to attract high paying clients and new complexes that continue to attract the attention of investors and media from all over the world. "Tax rates for both businesses and individuals are among the lowest in Europe; there are currently no restrictions on capital movements; and despite inflation, the cost of living is still much lower than in Western Europe or North America. And starting a new company is very easy," reminds Niko Lakovic, noting that the Montenegrin government grants foreign investors the same status as locals.

It is important to note that experienced experts in the real estate market in Montenegro, among which is leading Sotheby's International Realty, can help all interested parties and tell about all the advantages that await those who dream of a new home in the heart or around Boka Kotorska Bay or in one of the picturesque cities of Montenegro.

To add, the standard property tax rate is between 0.25 and 1 percent of market value each year, except up to 5 percent. This means that all buyers will be able to make the most of their investment and get a greater return.

Luštica Bay

One of the complexes that is attracting the most excitement and plans is Luštica Bay, which boasts an interest-free five-year real estate repayment plan, as well as the option to move in or rent out a beachfront home before the repayment ends. For example, in the luxurious golf residences The Peaks, which offers breath taking panoramic views of the Adriatic Sea and the golf course (designed by renowned golf architect Gary Player), a one-bedroom apartment of 106 square meters can be bought for 740,000 euros with a favorable repayment plan. The buyer pays just a 10% deposit and the remaining money in 15 quarterly installments over five years.

The Dreams, Dukley Gardens

The third "treasure" in the crown of luxury real estate was the recently announced most exclusive project Porto Montenegro. The Sinhro Yards development, built on the site of a former shipyard, includes exclusive residences overlooking the sunsets of the bay, a unique five-star IVO hotel. The Aeris building, with 22 residences over five floors, offers studio, one, two, three or four bedroom apartments and penthouses, while the Aurora building, part of the IVO 5* Hotel&Residences, offers owners not only several pools and restaurants, but also a global network of privileges. Prices range from 15,000 to 24,000 euros per square meter. And the fact that Montenegro is already leading in something, and this at the European level, is also indicated by the fact that in Dukley Gardens real estate can be purchased for cryptocurrency (Bitcoin, Ethereum and ten other leading cryptocurrencies). In the new project The Dreams by Dukley, near the Porto Montenegro marina, a one-bedroom apartment with garage and storage room of 68 square meters costs 790,000 euros, with payment within 18 months, with an exclusive investment opportunity and a guaranteed annual income of up to 6%.

All these trends speak in favor of Montenegro, as many foreigners learned in 2023. And what are the expectations for the future? They are bright, says the man who knows this very well, Niko Lakovic. "All indicators point to the fact that both prices and sales volumes will continue to rise. Montenegro is a young market that has a lot of room for further growth," concludes the CEO of Sotheby's International Realty in Montenegro.