Montenegro Property’s Long Term Appeal Starts in 2007

In 2006 Montenegrin’s voted in favour of independence from Serbia even with the knowledge that in the short term this could set their nation back politically and economically.  As a result of achieving independence Montenegro lost its Council of Europe membership for example, but it gained so much more in terms of its long term attraction as a tourism destination, a country attractive for foreign direct investment and as a nation with an emerging property market exuding serious potential.

Some have remarked that Montenegro is a nation steeped in a history of black market corruption, that it is a country suffering serious infrastructure issues and a country with short term limited tourism appeal – but all of these people have got one thing in common, they are short-sighted and have not dug deeply enough when doing their due diligence on this small but perfectly formed eastern European nation.  As far as we are concerned Montenegro property’s long term appeal starts in 2007.

Since independence Montenegro is actively pursuing membership of the World Trade Organisation, it is working with the European Commission to get a Stabilization and Association agreement in place for the eventual accession of the nation to full EU membership, it has attracted some serious inward foreign direct investment especially into its fledgling tourism industry and in October the chairman, CEO and founder of one of the largest real estate investment trusts listed on the NYSE agreed terms with the government to buy and totally redevelop a former ship yard into a tourism and real estate haven in a small coastal town in Montenegro called Tivat.

The Russian’s are coming, as are the Scandinavians and now American, British and Irish interest in property in Montenegro is starting to push prices up.  Thanks to the new James Bond movie the wider world can see just how stunningly beautiful and diverse the countryside is in Montenegro – there are beaches, lakes, mountains and enough character properties ripe for renovation to have even the most cautious investor tentatively interested – add to this the fact the government actually seems to want overseas property buyers making their move on the market and that the buying process can be straightforward for new builds and you have a market as ripe for expansion as any.

The property buying process has improved in terms of simplification and streamlining, those who buy purchase with cash because of a lack of mortgages meaning their straight investment is welcome, the Russians want Montenegro to be a high class resort meaning money will come to improve infrastructure and the tourism appeal of this country cannot be denied – it is quite simply stunning.  Who in their right mind believes anything other than the fact that Montenegro property’s long term appeal starts in 2007?

Sure, there are issues to be aware of in Montenegro – after all it is an emerging nation.  As mentioned earlier there is a climate of corruption and organised crime exists, add to this the fact that historically land title changes have not been properly documented and that this can mean more than one owner claims ownership rights making the purchase of resales sometimes tricky, mortgages are not yet available as stated and rental yields fluctuate.  But if you buy in 2007 you secure a property at today’s prices while the rest of the world and its subsequent investment flows in around you and pushes the intrinsic value of your property stock right up.

Unlike Bulgaria and Romania Montenegro has a pedigree in terms of tourism appeal – the likes of Sophia Loren, Richard Burton and Elizabeth Taylor took their holidays in Montenegro many years ago – and it’s only a matter of time before direct flights come and then the tour operators will follow and those with coastal property assets and well located homes with decent views, finished attractively and furnished well will be able to rent out their homes or resell to an awaiting investor or holiday home hunter. 

When mortgages do eventually become available and the Montenegrin government sorts out unemployment even the local market will be able to afford to buy homes and so long term the attraction of Montenegro will just keep on rising.  As far as we are concerned 2007 is the perfect time for market entry in Montenegro for all those seeking a long term, slow burning, but well located property investment asset…we could be wrong, but we like Montenegro anyway.

Special Reports: Property News for Montenegro

Montenegro Investment Property Buying Process
Buying investment property in Montenegro is buying in a truly emerging market and investors should be aware of the risks

Montenegro Property Buyer’s Guide
The real estate sector in Montenegro is emerging as one of the more exciting markets for property investors in Europe

Montenegro Property Investment Guide
Montenegro has substantial long term potential for a property investor seeking a rich emerging real estate market