As any investor will tell you, the time to enter a market is when it is just picking up steam – it is where the greatest gains can be found. And that is one reason why investors are enthusiastic about Montenegro. This small Eastern European country has seen strong growth in recent years, and all signs suggest there is more to come.
Rising property prices
After a sharp drop in 2020 due to the pandemic, Montenegro property prices are on the comeback trail. By March 2021, prices had jumped more than 20% year-on-year after falling more than 11% the previous quarter.
This environment puts Montenegro in an attractive position from an investor’s perspective. It has the dual appeal of offering the prospect of reduced prices with rapid price appreciation in the future. The pandemic has distorted the market, creating an exceptional window of opportunity for enterprising investors.
Booming tourism
That window of opportunity exists thanks to positive fundamentals, not the least of which is a thriving tourism market. In 2019, approximately 2.5 million people visited Montenegro. Tourism is fuelling growth, with economists predicting the country to lead the way in terms of GDP post-Covid-19.
As restrictions ease and vaccine rates rise, Europe is discovering to live with the pandemic. Foreign holidays are back on the menu as the tourism industry prepares to benefit from a surge in pent-up demand. People have spent the last two years unable to go on holiday, and they are eager to do so now.
With prices soaring in prime locations, people are looking beyond the usual hotspots. However, even before the pandemic, Montenegro was an attractive proposition – offering a rich holiday experience at a relatively more affordable price.
A prime location
Montenegro enjoyed a prime location in southern Europe, bordering the Adriatic Sea. It is the historical meeting point between East and West and has excellent connections in both directions. It has two international airports in Podgorica and Tivat, offering fast and low-cost connections from most major European airports. London, for example, is only three hours away.
It also has two ports, a railway service to Belgrade and a ferry service to Bari in Italy. A central location and excellent transport links make it an accessible destination from just about anywhere.
A welcoming environment
Montenegro offers a favourable regulatory environment. Taxes are relatively low at 9% for income and corporation tax. The process of purchasing property is straightforward, and foreign buyers can buy and rent their acquisition under the same conditions as Montenegro citizens. They can also obtain a residency permit through property purchases regardless of the value.
A warm climate
With its southern European location, Montenegro enjoys a perfect climate for any holiday destination. Average temperatures in the 20s and more than 200 days of sunshine mean it has plenty of offer for sun-seekers.
As a result, Montenegro presents an ideal option for second-home buyers. It sits perfectly in a market with plenty of room for growth whilst being relatively under-priced. If you are looking for a property that delivers a great holiday and lucrative financial return, Montenegro is for you.
Love Montenegro? Contact us today to secure your dream home in this beautiful country.
