Ready for chaos in Montenegro’s real estate market? While many wonder where the classic investments have gone, data from Montenegro’s Central Bank drops a bombshell – real estate investments have exploded by a whopping 20% in the first four months of this year compared to last! But it’s not all sunshine and rainbows. As foreign investors snap up properties en masse, locals are choking under the pressure of sky-high prices now at historic levels, even higher than before the global economic crisis.
Economist Predrag Zečević doesn’t hide his concern: “Montenegro’s real estate market is completely overheated!” People who once invested outside big cities now face massive demand and prices far from realistic. Vacation homes in Vojvodina and holiday houses costing 2 million euros? Yes, that’s the new reality.
But what about the rest of the economy? Foreign direct investments rose by 13% compared to last year, but the total inflow remains about 40% below 2019 levels. Shockingly, the share of investments in the banking sector and real economy dropped from 31% to just 12.8%. So money isn’t going where it’s most needed but into real estate that only inflates prices and creates problems for locals.
This isn’t just numbers on paper – it means ordinary people in Montenegro are finding it harder to afford their own homes. While foreign investors enjoy rising property values, locals wonder how they’ll survive in a country where real estate prices are at historic peaks.
If you think this is just another economic story, think again. This is real economic chaos that could shake the entire region. Will the authorities act or let the real estate bubble inflate even more? And you, what do you think about this wild ride? Is it time for locals to rise up or should we all brace for even pricier properties? Drop a comment, maybe your idea will change the game!
