Property in Montenegro Pros and Cons

Well, it’s true – we are hot on property in Montenegro at Amberlamb but don’t go believing that our property passions ever cloud our collective judgment!  Yes, this report is about property in Montenegro but it’s not just about the pros - for we would be remiss if we failed to highlight the cons for you as well…

If you take a trip to this stunning, small but perfectly formed nation without looking at real estate for sale we defy you not to fall in love with the beauty and charms of Montenegro.  But if you’re going on a real estate fact finding mission you will indeed find a few problems along the way that the developers and real estate agents are ensuring stay out of the main stream media promotion of the emerging property market in Montenegro.

So, you’ll read that Colliers International have reported a 400% increase in property transactions in just two years, you’ll learn that the standard and quality of life in Montenegro is fast rising as the nation progresses on its integrationist path in a bid to become a member of the European Union and you’ll also discover that the World Travel and Tourism Council believe that Montenegro will experience the fastest tourist industry growth of any country over the next ten years.

All excellent reasons to invest in property in Montenegro of course…

But there is no guarantee that Montenegro will be accepted for EU entry – so don’t bank everything on that one factor.  Yes, EU entry made millionaires out of some property investors in Bulgaria and Romania but there is still a long way for Montenegro to go before it will reach accession.

Additional significant cons include the fact that there are issues with the water and electric infrastructure in certain parts of the nation which should not be ignored or overlooked.  You try living the dream in an apartment that has no running water and which suffers power cuts on a regular basis!  Sure, international funds have been received and the government is undertaking a significant infrastructure improvement program…but do bear these considerations in mind.

Next up on our negative appraisal of property in Montenegro as an investment choice is the fact that building standards can be diabolical!  Sure, it’s the same in virtually every single emerging (and some established) market in the world…but there’s shoddy brick work and then there’s bad construction and there’s a world of difference between the two. 

As an investor you need to think about how you will be using your property to turn a profit.  If you’re going to be renting it to tourists it needs to be well located, ideally have at least two bedrooms with room enough for a double bed or two singles as well as storage space and it needs two bathrooms. 

Some developers are guilty of throwing up property with small and impractical rooms and the wrong number and layout that will ensure no one wants to rent such a property. 

Now, if on the other hand you’re wanting to flip or rent your property for a while before reselling then ensure that it’s going to be desirable at the point of resale.  If you’re buying in an area where there is already significant new development what will make a given property stand out – find a wow factor in a property before you buy it and make sure it’s well built!

What else?  Well, Montenegro isn’t the easiest and cheapest country to get to – so think about how your tourism tenants will get to your property.  And then what about the fact that you can’t get a mortgage to buy so you’ll be needing to invest large lumps of capital into a market that is immature?  Fine, you might well be happy to do so – but if you need to resell your property how likely is it that there is strong market demand and affordability at the level you will require it for a healthy and profitable resale.

And finally – buyer beware – there are a lot of sharks out there in the Montenegrin property pool.  Check title deeds, check building permissions, check the developer and real estate agent out and get yourself very good legal representation.

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