Despite unfavorable credit conditions and rising living costs, apartment prices in Podgorica continue to rise, and the boom that began in the second half of last year continues on an upward trajectory this year, reaching record values in the third quarter of this year, says Darko Đikanović, market analyst.
Đikanović says that the current average price of a one-room apartment in Podgorica is 1,720 euros per square meter, while, for the sake of comparison, in the same period last year the average was 1,360 euros, and in 2021 – 1,200 euros. This represents a growth of over 40 percent in a period of only two years.
“High demand and high inflation combined with the inflow of foreign capital have contributed to such an enormous jump in apartment prices. Of course, prices vary mostly depending on the location, the size of the apartment and the quality of construction,” said Đikanović.
What is noticeable, as he emphasizes, is that in the last year the supply has grown, as evidenced by the growth of residential construction after a long period of inactivity caused by the pandemic.
“These trends in the construction sector will certainly affect the reduction of the gap between supply and demand, and due to the high activity on the market and the significant influx of foreign investments in real estate, it remains uncertain whether prices will stabilize in the near future,” said Đikanović.
According to Monstat data, the average price per square meter of a newly built apartment in Montenegro in the second quarter of 2023 was 1,500 euros, nine percent more than in the same period last year. During the same period, the average price of an apartment in a new building in Podgorica jumped by 13.5 percent to 1,581 euros.
The average price per square meter of a newly built apartment in the coastal region at the end of June was 1,413 euros, in the central region 714 euros, while in the northern region the average price per square meter of a newly built apartment was 1,280 euros.
