Published on 15 November 2005 at 01:52 pm
Filed under: Europe:- Montenegro Property Guides » Montenegro Property Investment Guide
The popularity of Montenegro from a property investor’s point of view currently stems from the facts that real estate in Montenegro is so undervalued, the country has entered into a period of reform designed to bring economic growth and foreign direct investment, Montenegrins are aligning for EU accession and the country is beginning to attract growing overseas tourism interest.
There is immediate money to be made from buying to let to the tourism market and buying to let domestically in the main towns and cities in Montenegro and there is long term growth potential as the local population grow wealthier, home finance becomes more widely available and growing numbers of international retirees and second home hunters realize the incredible attraction of the country and are drawn to purchase property in Montenegro.
Property prices in Montenegro are so undervalued as a result of the civil war that rocked the country during the 1990s and the economic decline the country suffered between 1989 and 2001. It is really only in the lat four years that the country has become stable, desirable, and a viable concern economically speaking. Nowadays inflation is vastly reduced, GDP is increasing in a sustainable way and the local population are beginning to see true income increases and are enjoying greater purchasing power.
The Montenegrin authorities are committed to attracting foreign direct investment into the country but are currently being restricted by the complexities of the political relationship structure between Montenegro and Serbia and also as a result of the two countries large foreign trade deficit. However, Montenegro has sought to distance its fiscal arrangements from those of Serbia in a bid to appear more attractive to overseas investors and to this end the country has entered into a period of privatisation, making improvements in legal processes, crating greater transparency over property ownership rights etc., and it is widely predicted that the actions being taken now will result in greater international economic interest in Montenegro in the medium to long term.
Realistically property investors looking at Montenegro for substantial capital growth should hold their investments for at least the medium term. Real estate agents in Montenegro have already reported growing property prices based on the aforementioned reforms, the growing tourism interest in Montenegro and the fact that Montenegrins are committed to gaining EU membership, but so far the price gains have been small and the greatest growth will occur over the medium term.
Those overseas property buyers looking to make an income in the interim should target the coastal towns and beautiful, ancient walled cities of Montenegro where growing numbers of German, Eastern European and Russian visitors head annually. The northern coastal regions are currently the most popular and this is reflected in property prices there where they tend to be quite a bit higher than the country average. Those seeking an emerging market within an emerging country should head south or into the snowy mountains and pioneer in the places where it is predicted tourism numbers seeking sunshine or skiing will slowly begin to increase.
The fact that Montenegro used to be a playground of the rich, famous and European influential should give property investors an inkling of the vast potential of Montenegro in the future; its coastal regions, lakes, rivers, beautiful mountains and ancient and thriving towns and cities are all a draw and when the word is truly out about Montenegro, its tourism and property sectors will take off and begin to boom.
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