Tourism Growth Will Push up Property Prices in Montenegro

The latest Tourism Satellite Accounting Report released by the World Travel and Tourism Council (WTTC) this month indicates that for the third year in a row Montenegro tops the league of travel and tourism economies, proving that the Montenegrin government’s active objective to maximise tourism potential is literally paying dividends.

This bodes extremely well for the investment property market in Montenegro because with rising demand from the tourism market comes rising demand for accommodation, increased rental yields and overall real estate capital appreciation. 

The World Travel and Tourism Council’s report also presents predicted annualised real growth for Montenegro for the next decade; and for the period from 2007 – 2016 the growth rate is currently predicted to be 10.2%, meaning that for the medium to long term Montenegro represents one of the most exciting emerging investment property markets in the world with the greatest potential for growth directly as a result of its developing travel and tourism market.

According to Jean-Claude Baumgarten the president of the WTTC, countries like Montenegro are using travel and tourism “for broader economic development”.  Indeed, the active commitment of the government of Montenegro to the development of tourism in its country is literally paying dividends; in 2005 the Tourism Satellite Accounting Report set annualised real growth for Montenegro over the coming decade at 9.9% and in just one year they have had to revise this figure and now it stands at 10.2% as previously mentioned.

The growth in the tourism industry is helping to create a record number of new jobs which in turn is leading to further economic growth and stability in Montenegro.  Worldwide the travel and tourism industry is now responsible for employing some 76.7 million people – which is actually a staggering 2.8% of the total number of jobs in the world!  With job creation in Montenegro comes a stronger economy and a stronger economy is already responsible for increasing property prices.

The local market is also able to afford growing rental rates and slowly a new middle class is emerging which is demanding quality property in Montenegro to purchase.  This is another reason why the property prices in Montenegro are on the increase and for the medium to long term this south-eastern European nation is definitely one to watch as it has sustainable demand from local and overseas consumers for property to let and property to purchase. 

In conclusion, for real estate investors seeking an emerging economy with a solid foundation on which property price growth can be built and from which a solid income can immediately be derived, look no further than Montenegro.

Special Reports: Property News for Montenegro

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