Market situation by the end of 2022
The average price per square meter of an apartment in a new building in Montenegro in the third quarter of last year was 1,446 euros, which is 20 percent higher than in the same period in 2021, and 30 percent higher than the average in the 2020 crisis. The reasons for the increase in prices were a large jump in prices for building materials and energy throughout the European market, an increase in demand due to the arrival of a large number of buyers from Russia and Ukraine, as well as increased interest from domestic buyers due to increased wages and approved housing loans.
During the period from January to October last year, foreign citizens and companies invested 369 million euros in the purchase of real estate, which is significantly more compared to the pre-crisis 2019, when they invested 178 million euros in Montenegrin real estate. Most of these real estate investments by foreigners were made under the economic citizenship program, which is not included in the average apartment prices calculated by Monstat, but there has also been an increased interest of foreigners in buying and renting apartments outside of this program. From December 31, 2022, the government has suspended further acceptance of applications for economic citizenship due to the requirements and conditions of the European Union.
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