Montenegro Property Market Review
According to figures released at the beginning of the year Montenegro earns the greatest amount of foreign direct investment (FDI) per capita than any other country in Europe, with over £515 for each of its 650,000 inhabitants. Property investment alone accounted for €1 billion equal to 51% of the total FDI for 2007.
A large proportion of property investment comes from Russian investors and the Montenegrin government are clearly capitalising on this market. Montenegro’s capital, Podgorica, coined Moscow-on-Sea, openly welcomes the Russians with many advertising campaigns solely targeted at the ever-increasing Russian market. However, in terms of hectare ownership the Russians only just pip UK investors at the post.
The stunning scenery undoubtedly adds to the country’s attractiveness as a property investment and second home destination. Hotel and apartment developments are a key driving force for foreign ownership, which now equates to 1.52 million sq m of residential and commercial property, and over 19,000 hectares of foreign owned land is earmarked for construction works.
As the country moves closer to submitting its application to the European Union, the governmental reforms are coming to fruition. The government has pledged €131.3 million to ensure the country complies with strict EU regulations. This year will see a huge improvement to Montenegro’s infrastructure with much needed improvements to the country’s transportation system.
Foreigners have no restrictions to purchase property, although this does exclude the ownership of land, which currently requires an investor to set up a business in Montenegro. However, a new draft law, backed by the government will cut the red tape and allow foreigners to buy and develop land for both personal and commercial use. This law will also include the ability to finance a construction project locally, prior to completion.
Early predictions by the Central Bank suggested a downturn in Montenegro’s long running property growth for 2008. However, new laws, increased government spending and improvements to the country as a whole should hold Montenegro’s economic growth rate at a steady 7% year-on-year.
Montenegro is in fact trying to position itself as a high-end, south of France style destination, which reflects in the type and income bracket of the property buyer. Huge marble hotels and prestigious resorts are now commanding over €7,000 per sq m.
About James Gonzalez
James has a vast market knowledge and background within the world of property. Prior to joining Obelisk as Market Analyst, James worked for CB Richard Ellis (Hong Kong), Healey & Baker and Hamptons. James' key role at Obelisk is to research, analyse, and identify viable and profitable emerging markets.
About Obelisk
Our extensive research and analysis, whether it is through an Obelisk own development or via a developer partner, determines exactly where to build, what to build and when to build, from concept through to completion, making Obelisk unique within the property investment market.
Obelisk’s market leading, robust selection process ensures only the best financially secure property investments, safeguarding the future of our investor clients. All projects undertake compulsory due diligence making Obelisk the only overseas property investment company who provide clients with complete peace of mind.
For more information on overseas property investment, and to find out about Obelisk’s latest projects, contact Obelisk free on: 0808 160 0670 (UK) or 1800 932 514 (IRE)
Email info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com/
Andrea Elliott, PR & Communications Officer: Tel.: 00 34 952 820 319
Email aelliott@obeliskinternational.com
A large proportion of property investment comes from Russian investors and the Montenegrin government are clearly capitalising on this market. Montenegro’s capital, Podgorica, coined Moscow-on-Sea, openly welcomes the Russians with many advertising campaigns solely targeted at the ever-increasing Russian market. However, in terms of hectare ownership the Russians only just pip UK investors at the post.
The stunning scenery undoubtedly adds to the country’s attractiveness as a property investment and second home destination. Hotel and apartment developments are a key driving force for foreign ownership, which now equates to 1.52 million sq m of residential and commercial property, and over 19,000 hectares of foreign owned land is earmarked for construction works.
As the country moves closer to submitting its application to the European Union, the governmental reforms are coming to fruition. The government has pledged €131.3 million to ensure the country complies with strict EU regulations. This year will see a huge improvement to Montenegro’s infrastructure with much needed improvements to the country’s transportation system.
Foreigners have no restrictions to purchase property, although this does exclude the ownership of land, which currently requires an investor to set up a business in Montenegro. However, a new draft law, backed by the government will cut the red tape and allow foreigners to buy and develop land for both personal and commercial use. This law will also include the ability to finance a construction project locally, prior to completion.
Early predictions by the Central Bank suggested a downturn in Montenegro’s long running property growth for 2008. However, new laws, increased government spending and improvements to the country as a whole should hold Montenegro’s economic growth rate at a steady 7% year-on-year.
Montenegro is in fact trying to position itself as a high-end, south of France style destination, which reflects in the type and income bracket of the property buyer. Huge marble hotels and prestigious resorts are now commanding over €7,000 per sq m.
About James Gonzalez
James has a vast market knowledge and background within the world of property. Prior to joining Obelisk as Market Analyst, James worked for CB Richard Ellis (Hong Kong), Healey & Baker and Hamptons. James' key role at Obelisk is to research, analyse, and identify viable and profitable emerging markets.
About Obelisk
Our extensive research and analysis, whether it is through an Obelisk own development or via a developer partner, determines exactly where to build, what to build and when to build, from concept through to completion, making Obelisk unique within the property investment market.
Obelisk’s market leading, robust selection process ensures only the best financially secure property investments, safeguarding the future of our investor clients. All projects undertake compulsory due diligence making Obelisk the only overseas property investment company who provide clients with complete peace of mind.
For more information on overseas property investment, and to find out about Obelisk’s latest projects, contact Obelisk free on: 0808 160 0670 (UK) or 1800 932 514 (IRE)
Email info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com/
Andrea Elliott, PR & Communications Officer: Tel.: 00 34 952 820 319
Email aelliott@obeliskinternational.com
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