Ukrainians buy up properties in Montenegro irrespective of price

Ukrainians buy up properties in Montenegro irrespective of price

The seaside resorts of the Balkan country still haven't received any palpable attention from Western tourists. They did, however, attract many Ukrainian refugees, who completely unsettled the property market.

ECONOMY WORLD JUNE 21. 2022 11:26

Seaside properties

Real estate prices in Montenegro rose by 15 per cent in one year. The market favourite is, of course, the seaside. The supply side is diverse, ranging from bedsits to penthouses, all available and for sale. Based on ads posted on the nekretnine.rs website, the price per square metre starts at 1,500 euros and sky is the limit. For instance, a 20-square-metre ground-floor studio 800 metres from the beach in Tivat can cost as little as 20 thousand euros while a 46-square-metre luxury apartment in Budva can be bought for 184 thousand euros.

Budva and its surroundings are the most sought-after and expensive areas. It is also the largest coastal town, the metropolis of tourism, in Montenegro. It has a population of twenty thousand, but during the summer season this number multiplies. Budva is usually the venue for large-scale concerts and festivals, making it a town with a lot of buzz at night. Sveti Stefan (Saint Stephen), a small islet connected to the mainland by a narrow strip of land is also part of the town. A small islet boasts a single hotel complex on just a few hundred square metres, which tourist can only visit for 3 hours a day, for an entry fee of €20.

Photo: Pixabay

It is not possible to buy a property on Sveti Stefan, and Budva and its surroundings are extremely expensive in terms of what’s on the market in Montenegro. In nearby Becic a 37-square-metre, newly built apartment is offered at 125 400 euros, while in Rafailovic, 3 kilometres from Budva there is one properties available for 550 thousand euros, although it’s a 165-square metre beachfront apartment.

Kotor is also expensive. Here a 54-square-metre apartment with a sea-view can be bought for 120 thousand euros and a 57-square-metre apartment for 179 thousand. The most exciting offer can be found in the centre of the old town, where a 86-square-metre apartment costs 295 thousand euros. The fortified medieval town centre with its narrow, winding streets, small churches and other sights attract plenty of tourists. In addition to its historic and built heritage, there are many cafés, pubs and clubs attracting young people with a vibrant nightlife. Although the sea is not so suitable for swimming, many beautiful beaches are just a short drive away.

Photo: Pixabay

Herceg Novi appears to offer more affordable properties at lower prices. A 100-square-metre 3-room apartment can be bought for 200 thousand euros, but the ads also include a 100 square metre luxury apartment with a huge terrace overlooking the sea for only 160 thousand euros. The yacht port of nearby Tivat is quite expensive in comparison. Here, a 48-square-metre flat would set you back with nearly 300 thousand euros, and this is where we have managed to spot the most expensive property. The real estate portal nekretnine.me shows that a 241-square-metre, three-room flat complete with a swimming pool, situated right by the shore, is offered at 2 million euros.

Of course, if you want a house instead of a flat, you can buy a 2,000-square-metre plot with a five-hundred-square-metre holiday home, which has eight bedrooms and six bathrooms. The asking price for the property is 3.8 million euros.

Prices are rising fast

Those wishing to invest in real estate in Montenegro should act quickly. Numerous Ukrainian customers have appeared on the market, who are fleeing from the war and the uncertain economic situation, and have chosen the Balkan country, far from the attention of the world. V4NA also reported earlier that those fleeing the war apperar to be buying or renting properties regardless of the price. Montenegrin portal pobjeda.me writes that demand was so high in the spring that there are hardly any properties available for long-term rental. Prices have also exploded. Although they have grown by 15 per cent on average, the costs of mainly long-term rental offers have doubled in popular locations.

In previous years, properties in Montenegro were mainly bought by Serbian and local citizens, with some Germans and Russians also present on the market. Foreign interest, however, was not significant enough to make the life of buyers in the Western Balkan country impossible. The current wave of price hikes, however, will probably narrow the circle of local stakeholders and drive those with slimmer wallets out of the market.

Local real estate agents are also uncertain, as it is hard to predict how the growing demand will affect the market in the long run. No one knows how long the war will last, and whether those who are temporarily moving to Montenegro will want to return to Ukraine. And if they do, will they keep their seashore properties for investment. According to an agent interviewed by Pobjeda, demand is expected to dwindle to some extent by the end of the year, which will make the situation less complicated on the market. The expert also adds that this year’s tourist season will not be disrupted by the wave of Ukrainian refugees, meaning that hotel and apartment prices will not rise. Ukrainians have chosen “other types of properties”, he said.

ECONOMY WORLD

Tags:

adriatic sea, montenegro, ukrainian