Real estate investments in MNE
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Investing in Montenegro’s real estate might be very interesting to foreigners for two reasons:
- As we mentioned before, Montenegro has citizenship by investment program
- It might be interesting from investment point of view
If you are looking to invest in real estate there are few things to consider. You should think if there’s going to be appreciation in real estate value as well as if there will be a good cash flow from your investment.
If you were to look at Dubai you will notice that it is overbuilt so there is a concern that prices might drop. Also, there is not a good cashflow because there is lots of inventory. Kuala Lumpur’s real estate market is facing similar problems.
Montenegro is very interesting from investment point of view when it comes to real estate.
First of all, there are plenty of tourists here during the summer and these numbers are only growing. On the other hand, this country has limited seafront space. Once this area is built it’s done – they can’t go and build into infinity like in Dubai or KL because the desirable area is so sacred.
The big downside of this place is that the season only lasts for about four months in a year. So in order to get a good cashflow, your returns in these four months of high season need to be very high.
However, because there’s not a lot of space and there are not many high rises here it might be a good idea to invest into some land here, because the price of real estate will only rise in price in the future.
There are lots of development projects going on in Montenegro. There is a beautiful marina in Tivat called Porto Montenegro, construction of a bigger one is happening right now in Herceg Novi called Porto Novi. This is apparently going to be the second biggest marina in Europe (after Monte Carlo). There is another famous project named Lustica Bay. If you go to Budva you will notice a spectacular project that was recently finished called the Dukley gardens. All of those projects are extremely luxurious, and they meet world class standards. This country is geographically beautiful and has a great weather.
All of this is telling us that real estate prices in Montenegro will inevitably go up.
Depending where you want to buy, you can buy property for 1100 euros per square meter which is quite affordable. This is the average for the seaside. If you want to buy property in one of those luxurious projects prices are much much higher.
There is a big demand for rental property during the summer. All of the high end hotels are fully booked months in advance.
So, if you are looking to invest into real estate you should definitely check out this small but beautiful country at the coast of Adriatic sea.