Published on 03 March 2006 at 05:15 pm
Filed in Property News for Montenegro » Tourism Driving Economy & Property Market in Montenegro
According to a recent report produced by the World Travel and Tourism Council, Montenegro’s tourism sector could achieve annual growth in demand of 10.3% over the next ten years which would result in travel and tourism GDP rising by an estimated 9% annually for at least a decade.
The rising image of Montenegro as a year round desirable tourism destination is leading to a strengthening economy and a property market that is bursting with local and international demand. With rental yields of between 7 and 9% achievable already and capital growth in the property sector rapidly appreciating, property investors are aware that Montenegro is going to be the next big thing in terms of the fly to let property investment market.
The desirability of the country is the key to the long term investment potential of Montenegro. While there’s thankfully no denying the fact that the local economy is growing and that the local people are directly benefiting with higher wages being earned and more disposable income left each month, the demand for property for sale and rent in Montenegro that an investor needs to tap into comes from the tourism and second home market at the moment.
As long as there is no denying the fact that Montenegro is a stunning country of natural diversity and an abundance of attraction there will remain constant desire from the tourism market for homes to rent and a growing demand from those seeking an affordable retirement and second or holiday home destination for property to purchase.
This breadth and flow of demand offers a property investor a market ripe for exploration – a country like Montenegro has the perfect ingredients for property portfolio expansion and the main reason the property market can offer an investor a short, medium and long term investment opportunity is down to the fact that the tourism potential of the country is massive and is currently massively under explored but in the process of receiving significant government and private funds for its promotion.
Montenegro is a country with over 110 beaches, it has a stunning summer climate with average coastal temperatures throughout the summer months reaching at least 25 degrees Celsius, it is also a country with mountains and ski slopes and a winter skiing season, a country with lakes, gorges, ancient architecture and such a wealth of history and culture that it offers something for everyone throughout the year. But it is also a country that requires substantial promotion and government assistance if it is to raise its profile as the beautiful tourist destination that it is.
Thankfully the government of Montenegro is totally committed to the promotion of the country and the development of the nation as a desirable tourist destination. To that end they have made significant investment into infrastructure projects, into the upgrading of beaches and resorts and into the improvement of public areas in the main towns and resorts in Montenegro. Current expenditure on travel and tourism is 3.9% of total government expenditure and this is expected to rise to 4.1% by 2014 in line with the government’s ongoing and sustained focus and commitment to promoting the country as a destination of note.
As Montenegro’s tourism appeal rises and the promotion of the destination increases, it is likely that interest in investment property in Montenegro will rise in line and that this eastern European nation will become a hot favourite with fly to let investors, holiday home hunters and those in search of an affordable and desirable retirement home location.
