Buyer's Handbook
Where to Buy Your Property in Montenegro
The most popular place to buy a property is along the coast of Montenegro between Herceg Novi and Petrovac. The Bay of Kotor and the Budva Riviera are the most sought-after destinations for both buyers and holiday-makers, meaning your property will hold its value and be easy to rent. Although properties on the south coast (Bar and Ulcinj Rivieras) and inland are cheaper, these areas are not as sought after so selling or renting a property here will be harder.
If you’re looking for a place just for your own use and expect to hold onto it long-term, I’d recommend coming to see which areas would suit you before you buy.
Real Estate Types
Apartments
Apartments are a popular investment. They don’t have land titles, and as a foreigner, you can buy one without having to form a company. They’re also easy to rent when you’re not there and they’re just about maintenance free. Some of the best apartment options have shared pools, which you pay a maintenance fee for and have the right to use. If you plan to rent your apartment when you’re not using it, apartments with pools are in demand and reasonably rare, so you’ll be able to charge a premium for it.
Villas
With both new and old villas on the market, you can choose one to renovate yourself or one that’s already done for you. Villas are in great demand with holiday-makers and owners can charge a premium for a villa with a private pool.
Off-plan
There are lots of off-plan apartment and villa opportunities on the coast of Montenegro. These luxury complexes include pools, wellness centres, beaches and even marinas for your yacht! Prices for these properties are significantly higher than for standard properties, but when you buy off-plan you can be assured that the prices of these properties will only rise.
Ruins
Who hasn’t dreamed of buying an old, stone ruin and restoring it to its former glory? Restored stone houses are popular with buyers, meaning they’re easier to sell if the time comes, and they’re also in demand on the rental market. Stone ruins require a lot of time and deep pockets, but the end result is both stunning and valuable.
Land
Buying land and building your own dream getaway is a great option. Many Montenegrin homes are old-fashioned and difficult to renovate. Starting anew gives you the option of open-plan living areas, modern building materials and, thanks to relatively cheap labour, it’s cost-effective. You can also find good-quality prefabricated houses (montažne kuće) which are inexpensive and made with modern materials.
Real Estate History
Like the rest of the world, Montenegro enjoyed a housing boom in the early 2000’s that sent property prices skyrocketing. Sleepy seaside hamlets filled with foreign property investors looking for investment properties to flip, and every Montenegrin and his baba (grandma) were talking about real estate prices. Then the global financial crisis hit. Like the rest of the world, the buyers disappeared and the real estate market dried up. Wealthy Russians looking for second homes kept the property market afloat but in the 10 years since the crisis hit, property prices have never gone back to the inflated, boom-time prices, which is great news if you are looking to buy.
You can now buy your own slice of Adriatic heaven for a reasonable price.
Property Transactions
Property Transactions are governed by The Law of Proprietary and Ownership Rights.
Generally, most sales will have these steps:
- First the property buyer finds a property that they would like to purchase.
- Then the offer is made and details are negotiated between agents and the seller (or buyer and seller).
- Up to 10 percent of the purchase price is paid by the buyer as a deposit.
- A lawyer (elected by the buyer) confirms that the property is fit for sale. The deposit will be refunded if the lawyer finds the property not fit for sale.
- The Sales & Purchase Agreement is established and signed by both parties. (Notary fees are paid by the buyer)
- Sales & Purchase Agreement defines the payment arrangement.
- Real Estate Turnover Tax (3%) is due within 15 days of signing the agreement.
- The lawyer (elected by the buyer) registers the transaction and transfers the title deed.
