Primary residential Fund of Montenegro: checking the prices

As shown by relevant statistics, in 2007-08 there was twice more people, who wanted to buy a house by the sea than those, who wanted to sell it. At least twice!

 

Because of this, real estate agencies were working in emergency mode: even the most decent houses on the secondary market did not meet the ambitions of the buyers. And there was categorically not enough amount of new buildings. And this was despite the fact that, given the realities of the local market and despite global recession, developers in Montenegro increased volumes of construction from year to year. For the last five years, the rate of input of new housing in all price categories increased several times but this was not enough.
The maximum activity of the developers, of course, is localized in Podgorica. However, this focus on local buyers, foreign customers are willing to live by the sea. And so the coast has its own top-list of the most built-up villages and towns. Out of competition Budva and its "suburbs" - Rafailovici, Becici, Petrovac. The second place you can put the active construction in the Bar and nearest Nurani, Sutomore, Ilino. Third place is owned by the district of Kotor, the fourth line of the rating in construction activity – the area of Herceg-Novi.

Foreign customer: desires and reality

A significant part of new property owners are Russians, they are buying more than half of the housing purchased by foreigners. The second are the Ukrainians and 20% of all purchases by foreigners belongs to Scandinavians. Then - in descending order – the citizens of Germany, Czech Republic, Poland and other Europeans. Only the share of buyers from abroad account more than 55% of the "primary".

About the habits of Russians and Ukrainians: they like to buy apartments in the early stages of construction. The most obvious of this trend in the segment of cheap (by the standards of Montenegro) apartments in the price range of 1200-1500 Euro per square meter. Explanations for this strategy are two: obviously, lower prices and an apparent prolongation of the payment (installments) that stretched for two and a half years to completion.

Clients seeking to buy property in Montenegro should be aware that in operation receives only completely ready for new construction, which carried out the finishing work. The quality of work is at a high level: double-glazed windows (PVC or aluminum high quality, Italian or Spanish ceramic tiles or porcelain tiles, split air conditioning in all rooms, installation of warm floor, complete infrastructure for low-current networks (telephone and Internet, satellite "dish" with a subscription of Russian TV channels). In the vast majority of housing – 95% of the bathrooms are equipped with sanitary equipment, built-in appliances of the famous brands found in 35-40% of kitchens.

About "linear pricing"

The practice of real estate sales in Montenegro shows that, as a rule, new buildings cost 20% higher than similar housing in the secondary market.
Pricing factors are the following:

• location. We are talking about how prestigious is the area in which housing is acquired. Assessment of prestige, for all its subjectivity, is one of the most important "coefficient";
• the proximity to the sea, the so-called "first line". It was not long before trouble starts, because the availability in the first line is almost gone. Especially in upscale neighborhoods;
• the view from the windows. The more scenic it is, the more expensive is housing;
• transport and social infrastructure in the home environment;
• very important features such as availability of parking, easy access to the roads, their bias.

Depending on how far/close a new building stays from the sea, the price on the same property can vary significantly. For example, the first line will cost in the range of 2500-3800 euros per "square". If the beach is about 500 meters, the price at the level of 1600-1800 euros; the distance of 700 meters provides a further reduction to the limit to 1100-1400 euros per square meter. It is important that the same high demand is available on all of these proposals. In addition, each of the locations has its advantages. The close proximity to the sea, of course, very important but more remote housing is much cheaper, and the view from the window can be even better, more attractive and more picturesque.

Tips for foreigners

The most important for those, who wish to buy a house in Montenegro: foreigners must be extremely careful when checking the documents of the property. Special attention to the certificate of land ownership, the construction permit, the existence of a contract with the local community about payment of tax on utility infrastructure ("Communale" tax). To exclude force majeure language, if execution of the preliminary agreement need a translator license, which are serviced separately. The contract must show all the terms of the transaction, including the deadline of construction, a listing of materials, which will be applied, as well as all the other options that will be implemented and presented in the finished housing.

Individual preferences for housing choice – peace and quiet or, conversely, "eternal holiday" by the sea – a truly individual. But Montenegro has everything and everyone will be able to choose something special for his/her taste.