Real estate prices on Montenegro's coast are rising by up to 50% per annum in some areas, according to new research from Colliers International Serbia. The price of new modern buildings in the popular towns of Herceg Novi, Ulcinj, Bar and Tivat is now between € 2500-5000 per m² while in Budva, Sveti Stefan and Petrovac prices are ever higher. The increase in both prices and demand shows no sign of slowing down.
The price of land is also increasing constantly, and it now ranges between 200 EUR and 450 EUR per square meter, depending on the area, with the most expensive being the Sveti Stefan, Budva and Petrovac-Lucice area. Montenegro's GDP growth in 2006 was 4.5%, while inflation was low at 2.8% and foreign direct investment (FDI) increased by 31% in 2006 to over 500 million EUR.
Jovan Jovanovic, Manager of Colliers International Serbia's Investment and Corporate Advisory Services that produced the research commented, "Montenegro's coastline has become one of the most potent property investment markets in the world, as our research shows. Revenue from the sale of real estate in Montenegro has increased by 400% in just two years, according to official figures."
Jovica Jakovac, General Manager of Colliers International Serbia, added "Colliers is very active in Montenegro, we are able to offer clients a comprehensive range of real estate services there, including representation and valuation. It's just another reason why we are the clear market leaders in our field in the region."