In Montenegro, foreign nationals bought properties totaling 370 million euros last year. The developing coastal country has great tourism potential, thus it's become a key destination for investors, mostly from Germany, Russia, Serbia and America.

Germans are buying the most real estate

From January to October 2022, foreign citizens and businesses bought properties in Montenegro amounting to 370 million euros, which is a marked increase compared to previous years, according to official statistics. As several high-end tourism investments are underway, investors present in the country are not expecting any decline in real estate prices in the near future. Interest from foreigners in Montenegro’s real estate market is nothing new. If we take the last 5 years as a basis, foreigners spent a total of 1.2 billion euros on flats and vacation homes there.

According to data published out by Montenegro’s Central Bank, German citizens and companies bought the most real estate last year – to the tune of around 57 million euros – followed by the Russians, who invested 50 million euros to acquire property in the country boasting a long coastline on the Adriatic Sea. having totalling 42 million, Serb citizens and businesses are in the third place, followed by Americans who spent 32 million euros.

Investors from Turkey are in fifth place with 30 million, followed by Ukrainians and Swiss investors, with 15 million each, then Bosnians with 14 million, and the British with 12 million euros.

It is worth investing in the coastal country

Montenegro is a dynamically developing country on the Balkan Peninsula, offering a number of potential opportunities, according to experts. The highway connecting Serbia and Montenegro is currently under construction, and the state is also a candidate for EU membership. ***Both locals and investors are confident that Montenegro will soon become an EU member state. In addition, its tourism sector is growing steadily, offering many exclusive tourism and real estate investments that have made the country so attractive to foreigners.

Investors expect that the price of these properties will not decline, but rather rise, meaning that they can benefit more from their local developments and are able to potentially increase their wealth.

Investors with enough money could also get citizenship

The introduction of economic citizenship institutions has also contributed to this marked spike in property sales, Vijesti writes. This means that if you buy property in the north, in the less developed part of the country, for at least 250,000 euros, or in the south, in the tourist zone, for at least 450,000 euros, you are eligible for Montenegrin citizenship.

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However, the citizenship scheme that’s generated significant revenue for the state will not continue in its current form, Prime Minister Dritan Abazovic said, adding that the government respects the request of the European Union, even if the revenue generated from the programme would haven been enough to build a whole new motorway. The government is looking for an alternative solution, which will not raise concerns with the EU, but help the economic development of Montenegro, PM Abazovic added. Brussels says that granting citizenship in this way implies dangers.

In 2021, mostly Russian, Chinese, American, Indian, Lebanese, Egyptian, Pakistani and South African nationals took part in the program.

The arrival of foreign investors has also had an impact on the cost of living in the Balkan country. A survey, which does not include Croatia and Slovenia – two countries that are already part of the EU – shows that Montenegro is the most expensive in the region for an average family of four.