NewsReal estate market in Montenegro

Real estate market in Montenegro

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Although millions have been circulating in the real estate market in Montenegro for years, a large part of mediation in buying and renting is done in the gray zone, and the law regulating this area is yet to enter the parliamentary procedure.

The most significant contribution to operating in the gray zone comes from uncontrolled online real estate advertising, where anyone can advertise themselves as a real estate agent without a license, company, or any guarantee.

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  • It’s not right for someone who is not registered for this activity, who doesn’t pay taxes to the state, who is not educated for it, and has no responsibility for any mistakes, to do this job without any control and consequences – says Ivan Dašić from the Montenegro Prospects agency.

The state does not have official data on business in this market.

Unofficial estimates from real estate agencies suggest that at least a third of mediations are conducted on the black market.

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There are officially registered 266 real estate agencies in Montenegro, but the number of those illegally involved in mediation is incomparably higher, according to the Chamber of Commerce of Montenegro.

They state that some individuals advertise several hundred properties, but their appeals to the inspection to increase control over such advertising have had no effect.

How much does the state lose due to illegal mediation?

Even after seven days, there was no response. They also did not receive an answer to how many fines were imposed for illegal mediation advertised on the internet.

Namely, on social networks, there is a large number of profiles that do not represent agencies but offer real estate. Besides locals, many Russians, Ukrainians, and Turks advertise properties in their languages.

Data from the pandemic year 2021, when there was a decline in real estate transactions, indicate what a lucrative business this is.

At that time, at least four million euros in cash or through the accounts of individuals were charged for mediation, announced the Ministry of Economic Development and Tourism in 2023.

The amount of money involved in the real estate market is evident from the fact that real estate purchases in Montenegro account for more than 53% of direct foreign investments.

For the first nine months of the previous year, foreigners bought real estate worth 380 million euros, according to the preliminary data of the Central Bank of Montenegro.

Most buyers were citizens of Serbia, Russia, Turkey, and Germany.

For the state to finally be able to crack down on illegal operations in this market, it is necessary to adopt the Law on Mediation in the Sale and Lease of Real Estate. Its adoption is expected this year.

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