The real estate market in Montenegro remains vibrant, with prices showing resilience. Veselin Dragaš, president of the Association of Real Estate Agencies, shared insights in an interview with Pobjeda, emphasizing that a short-term decline in prices is unlikely despite media speculation.
Dragaš noted that the real estate market does not react immediately to changes; rather, it requires an extended period of reduced demand for significant price drops to materialize. Currently, exclusive areas such as Tivat, Herceg Novi and Budva are witnessing prices reaching up to 10,000 euros per square meter.
Continued high demand
In addition to ongoing market trends, Dragaš highlighted critical issues, including unfair competition and a lack of legal frameworks to protect buyers, sellers, and agencies. He mentioned that a potential decline in rental prices could occur if interest from Russian and Ukrainian citizens continues to decrease. However, he stressed that a notable drop in apartment prices is unlikely as long as demand remains strong. Economic factors, such as inflation, interest rates and citizens’ purchasing power, significantly influence pricing.
“Real estate prices don’t respond instantly to market fluctuations. It takes a sustained period of reduced demand for prices to fall. While some sellers may lower their prices, we cannot claim that overall real estate prices have declined. Unfortunately, the media often reports inaccurate information from colleagues who lack market analysis expertise, leading to public misunderstanding. Moreover, the media often references data from Monstat and the Central Bank of Montenegro about overall transaction volumes that these institutions do not fully track,” Dragaš explained, noting that the CBCG collects transaction data from domestic and international financial activities.
“Consequently, we face inaccuracies in statistical data regarding overall real estate transactions since some deals are made in cash. The average price of new construction apartments published by Monstat does not reflect actual market prices. I stress that the figures cited in the media do not accurately represent current real estate values. We hope to collaborate with government agencies to improve data collection involving the Tax Administration, Monstat, CBCG, and other relevant bodies,” he added.
Dragaš also pointed out where the highest real estate prices are currently found.
“The priciest properties in Montenegro are located in exclusive resorts in Tivat, Herceg Novi, and Budva. These belong to the premium segment and cannot be compared with other types of real estate. In these sought-after locations or along the coast, prices can reach as high as 10,000 euros per square meter,” he emphasized.
Challenges in the industry
Dragaš identified the absence of legal regulation and unfair competition as significant challenges for real estate agencies.
“In Montenegro, many agents operate illegally in real estate transactions, undermining the market. This situation leaves buyers and sellers unprotected, and legitimate agencies face unfair competition. We anticipate the introduction of a law on real estate sales and rentals soon, which will help regulate the market,” he said, noting a significant drop in interest for rental properties from Russian and Ukrainian clients since the start of the year, although rental prices have not yet seen a major decline.
“If this trend persists, we may see a decrease in rental prices in the near future,” Dragaš cautioned.
Regarding the real estate market in Podgorica, he mentioned that there haven’t been any significant changes.
“As long as demand remains strong, we cannot expect a drop in apartment prices. The market has experienced consistent growth over the past three years, so this year, we certainly do not anticipate a decline in apartment prices,” he concluded, adding that economic factors—such as buyers’ purchasing power, inflation, interest rates on loans, social housing developments, laws, demographics, and more—play a crucial role in influencing real estate prices.
