Real estate in Montenegro: What to expect from the real estate market in 2024

The real estate market is a complex and dynamic industry that is constantly evolving. While the future cannot be predicted, current trends can provide insight into what to expect in the real estate market in 2024. What key trends are expected and how will they shape the housing market in the coming years?

Trends in the real estate market

In the third quarter of 2023, real estate prices in the euro area were 2.1% lower than in the third quarter of 2022. In the second quarter of 2023, prices fell by 1.5% compared to the same period in 2022. This data was taken from Eurostat, the European Union's statistical institute. The largest declines were recorded in Luxembourg (-13.6%), Germany (-10.2%) and Finland (-7%), while the largest increases were recorded in Croatia (+10.9%), Poland (+9.3%) and Bulgaria (+9.2%). The real estate market in the eurozone ended the previous year in stagnation. The number of transactions decreased and price growth slowed down noticeably.

Impact of economic conditions on the real estate market

The movement in the real estate market, and therefore construction activity, will depend primarily on economic conditions not only in the world, but also in Montenegro. If there is a decrease in economic development, the demand for real estate will decrease. This will also have a negative impact on the construction sector. On the other hand, a slowdown in inflation and lower interest rates may lead to increased demand and therefore increased construction activity. In the short term, a decline in construction activity is not expected, especially in residential construction. However, for the medium term, the economic situation in the country will play a key role. When it comes to the real estate market, there are four cycles: growth, slack or decline, recession and recovery. It is difficult to say what the time period or intensity of each of these cycles is, so it is difficult to predict the speed and intensity of a fading or falling real estate market, slowing price growth, declining interest rates and investment.

Current state of the real estate market in Montenegro

Recall that housing prices in Podgorica, Budva, Tivtu, Kotor, Bar, Herceg Novi and other Montenegrin cities rose rapidly during the pandemic, influenced by factors such as high demand and low supply. However, the sudden rise in interest rates has slowed down the market growth and affordability, which presents challenges for all buyers looking for an apartment, house or commercial property. The market is expected to calm down in 2024, and for the first time in several years there will be a negative trend. Of course, demand will play a decisive role as before. Apartment prices are often unrealistically high (perhaps due to fear of inflation), but properties with realistic prices will always find a buyer. Excessive prices lead to difficulties in selling and do not correspond to the standard of living in Montenegro. We hope that realistically set prices will be the most likely option this year, but a significant drop should not be expected.

Approaches to selling old apartments

Obviously, in terms of older apartments, observing on the Estitor real estate portal, sellers are willing to lower the prices of their properties because it is the only way to sell them. In case this happens, the number of apartment sales transactions is likely to increase. Estitor.com portal will be by your side in these key moments, as it will offer you not only real estate in Podgorica or Budva, but will also cover the current real estate offer throughout Montenegro. Being informed about these forecasts will be key for all potential buyers, sellers and industry professionals moving through the ever evolving residential landscape. That's why it's important to have a good guide to present you with the best deals and help you in seconds. That is what Estitor.com is there for, to answer all your questions and remove all your doubts. Since Estitor.com has 90,000 real estate listings from Montenegro and Serbia, rest assured that your search will fully cover everything you are looking for.