Residential Real Estate - Montenegro

In Montenegro, the Residential Real Estate market market is estimated to reach a value of US$18.16bn by 2024.
It is projected to exhibit an annual growth rate of 6.41% between 2024 and 2029, leading to a market volume of US$24.78bn by 2029.
When compared globally, China is expected to generate the highest value in the Real Estate sector, with an estimated worth of US$112.9tn by 2024.
Montenegro's residential real estate market is experiencing a surge in demand from international investors due to its stunning coastal landscapes and attractive property prices.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Montenegro is experiencing significant growth and development.

Customer preferences: Customers in Montenegro are increasingly looking for residential properties that offer a luxurious and comfortable lifestyle. They are interested in properties that provide modern amenities, high-quality construction, and beautiful views of the surrounding landscapes. Additionally, there is a growing demand for properties that are located near the coast, as Montenegro is known for its stunning beaches and coastal towns.

Trends in the market: One of the key trends in the Montenegrin residential real estate market is the increase in foreign investment. Montenegro's strategic location, favorable tax policies, and growing tourism industry have attracted a significant number of foreign buyers. These buyers are not only looking for holiday homes but also for investment opportunities, as the property market in Montenegro has shown strong potential for capital appreciation. Another trend in the market is the development of luxury residential projects. Developers are focusing on creating high-end properties that cater to the needs and preferences of affluent buyers. These properties often include features such as private pools, spa facilities, and 24-hour concierge services. The demand for luxury properties is driven by the increasing number of high-net-worth individuals who are looking to invest in Montenegro's real estate market.

Local special circumstances: Montenegro's accession to the European Union is expected to have a positive impact on the residential real estate market. The country's integration into the EU will likely attract more foreign buyers, as it provides them with greater ease of travel and access to the European market. Additionally, EU membership will bring more investment and infrastructure development to Montenegro, further boosting the attractiveness of the real estate market.

Underlying macroeconomic factors: Montenegro's growing tourism industry is a major driver of the residential real estate market. The country has seen a significant increase in tourist arrivals in recent years, leading to a higher demand for accommodation. This has created opportunities for property investors and developers to capitalize on the growing tourism sector. Another macroeconomic factor is Montenegro's stable economic growth. The country has experienced steady economic expansion in recent years, which has contributed to an increase in disposable income and consumer confidence. This has, in turn, fueled the demand for residential properties. In conclusion, the Residential Real Estate market in Montenegro is experiencing growth and development due to customer preferences for luxury properties, the increase in foreign investment, the country's accession to the European Union, and the positive macroeconomic factors such as a growing tourism industry and stable economic growth.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate - Montenegro

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Living Space

Methodology

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