Real-estate prices in Montenegro are in continual downfall trend, with high probability of continuing in the future, said economic analyst Vasilije Kostic.
“Recuperation of this market is not to be expected soon. Impulses that could work in that direction have delayed effect, and it depends on many other factors”, Kostic said to Pobjeda daily.
Average price per square meter in new constructions in Montenegro has been 1.010 EUR last year, which is 7,2% less than in 2015, according to Monstat. In Bar the average price was 1.500 EUR, Budva 955 EUR and Niksic 599 EUR.
According to Kostic, the market will not bounce back also due to reduced credit activities in banks, that also have high interest rates. Additional factor is that owners are not ready to hold the prices high anymore.
He believes real-estate and other markets will recuperate once economic recuperation seems more likely.
He said real-estate prices are always realistic if they have been formed on the market.
“Something has value in the amount that someone wants to pay for it. Market is the best mechanism for creating value of products and services in a specific time in a specific environment. Anything else comes down to speculation”, Kostic said.
He looked back on the period ten years ago when the prices of real-estate had an upward trend in Montenegro.
“When we talk about returning to the prices of real-estate bubble, chances are minimal that it happens short-term. Long-term, anything is possible”, Kostic said.
He warned that the consequences of an economic crisis do not disappear fast.
Many factors influence the real-estate market, such as economic prosperity (social and individual), socio-economic environment and political stability.
Director of Podgorica agency Iva Nekretnine, Mira Radovic, said that the prices in Podgorica remain at the same level during the last two, three years.
“There will always be interest for apartments in Podgorica, it is the capital of Montenegro”, she explained.
According to her, there is the most interest in apartments in City and Stari aerodrom neighbourhoods.
“We sell exclusively apartments of company Zetagradnja, and their apartments have already been sold in these locations, so we have ten buyers on our waitlist”, Radovic said.
She added that square meter in Stari aerodrom is from 1.000 to 1.050 per square meter, while in City the price is from 1.200 to 1.250 EUR.
No one wants old construction
“Square meter in old buildings in Podgorica is on average between 600 and 800 EUR”, Radovic said, adding that in neighbourhood Preko Morace the price can reach 1.100 EUR.
“I do not believe that the prices will rise, unless we see some foreign investment, like we did with Russians ten years ago”, Radovic said.
She believes that the prices in Podgorica are realistic.
Manager of Budva agency Gold Agent Vladan Stanisic said that real-estate market on Montenegrin coast was bad last year.
“There is no enough demand. January and February are always bad in all business sectors”, Stanisic said.
According to this agency, average price in Budva is 1.500 to 2.000 EUR per square meter, while sometimes it can reach the price of 3.000 EUR.
Stanisic was surprised by Monstat data, saying that in Budva it is impossible to find an apartment for less than 1.000 EUR per square meter.
He does not expect further decrease in prices.
“Prices of apartments cannot go lower than land prices or communal services”, Stanisic said.
He added that the market lacks Russian buyers.
“There are only individual cases, but we are too expensive for them currently”, Stanisic said.
