Property for Sale in Montenegro

What does Montenegro’s independence from Serbia mean for the investment property market in Montenegro, and how should property investors assess the announcement from Serbia that they accept the Montenegrins’ wish to secede from Serbia and re-establish the independent statehood that their country lost over eighty years ago? 

Well, property analysts are speculating like mad about the investment real estate market in Montenegro; some analysts state quite clearly that they believe the amount of property for sale in Montenegro will initially soar as Serbians seek to resell their coastal real estate for example.  Others analysts believe that the country will benefit from both an influx of tourists and investors and that the property market will thrive.  To get a balanced overview for our readers Amberlamb have been taking a closer look at the facts…

From the pro-independence camp great belief rests in the conviction that Serbia was restricting Montenegro from achieving its full economic potential and from realizing its true position on the global political stage. 

Serbia’s apparent inability to capture, try and convict war criminals is just one example the pro-independence camp have used to demonstrate how Serbia has restricted Montenegro’s path to EU accession for example, and if this turns out to be an accurate assessment of the situation and Montenegro now progresses more rapidly towards UN and NATO membership and then EU accession, the country will surely benefit from increased investment.

This would be great for the future of Montenegro but what about the economic prospects for the nation in the meantime? 

In the meantime the reality exists that Montenegro has a lot to do to establish itself economically and to this end the government and people are universally committed to both the tourism and property sectors.  Montenegro is not a massive exporter, manufacturer or producer and therefore its economic future relies on it improving its infrastructure, refining its property laws, attracting more foreign tourism and greater amounts of international investment, and it is believed that the property sector in Montenegro could be the fundamental key to the future prospects of the country.

Naturally enough this fact alone makes Montenegro a country to investigate more closely for international property investors on the hunt for emerging markets with great potential.  However, those analysts who are convinced that the amount of property for sale in Montenegro is about to increase dramatically have a valid point.  If all the Serbians who own real estate along the stunning Adriatic Coast decide to sell up all at once there will be a surfeit of property for sale in Montenegro which will make it a buyer’s market, restrict price increases, reduce the profitability of the market and potentially result in yet another economic hurdle for the Montenegrin authorities to have to cope with.

However, there is actually no reason why Serbians will sell up their property in Montenegro – Montenegro taking back independence is not an aggressive act neither was the decision that was taken as the result of a referendum a surprise - so it is highly unlikely that there will be a mass withdrawal of Serbian homeowners. 

So what other facts are pertinent to the discussion relating to the initial question posed in this article, namely - what does Montenegro’s independence from Serbia mean for the investment property market in Montenegro? 

Well, most estate agents in Montenegro firmly believe that the independence vote will result in property price increases, they cite the fact that Montenegro becomes a more attractive, more stable, less seemingly corrupt and dangerous place following independence from Serbia and naturally enough this will mean that more people are keen and willing to visit the country, and of those who visit more will hopefully commit to purchasing investment or holiday homes in Montenegro.

Backing this widely held conviction is the Montenegrin government’s assurance that independence from the less politically stable Serbia will result in Western tourism doubling from 2006 onwards, furthermore the country should immediately be able to improve infrastructure and attract foreign investment directly when the EU’s newly drafted aid-and-trade pact with Montenegro is agreed.

And finally, to just take politics out of the argument for one moment – the fact that Montenegro is a stunningly beautiful country with an excellent climate, a wealth of historic and cultural interest, unspoiled coastlines dramatically sea swept by the Adriatic and property prices that are unbelievably affordable, incredibly attractive and uniquely favourable, the Amberlamb team are fairly well convinced that the future for property for sale in Montenegro is positive and that if the Montenegrin authorities can seriously work on attracting greater tourism numbers, the prospect for investors purchasing both for capital appreciation and rental returns will be positive.

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