Residential Real Estate Leases - Montenegro

in Montenegro, a country in Southeastern Europe, is expected to see significant growth in its Residential Real Estate Leases market market.
According to projections, the revenue of this market segment is estimated to reach US$161.40m by the year 2024.
Among the various types of leases, House Leases are anticipated to dominate the market, with a projected market volume of US$122.70m in 2024.
This indicates a strong demand for residential properties in Montenegro.
Furthermore, it is predicted that the revenue of the Residential Real Estate Leases market market will experience a steady annual growth rate of 3.84% from 2024 to 2029.
This growth rate, also known as the compound annual growth rate (CAGR), will contribute to a market volume of US$194.80m by the year 2029.
These numbers demonstrate the promising opportunities in the Residential Real Estate Leases market market in Montenegro, highlighting the country's potential for growth and development in this sector.
Montenegro's residential real estate lease market is experiencing a surge in demand from foreign investors seeking luxury properties along its beautiful Adriatic coastline.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Montenegro has been experiencing steady growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Montenegro, there is a growing preference for residential real estate leases among both locals and foreigners. This can be attributed to several factors, including the flexibility and convenience that leasing offers compared to buying property. Leasing allows individuals to have a place to live without the long-term commitment and financial burden of purchasing a property. Additionally, leasing provides the opportunity to live in desirable locations without the high upfront costs associated with buying.

Trends in the market: One of the key trends in the residential real estate leases market in Montenegro is the increasing demand for luxury and high-end properties. This can be attributed to the country's growing popularity as a tourist destination, attracting high-net-worth individuals who are looking for luxurious accommodations during their stay. As a result, developers and investors are focusing on building and offering high-end residential properties for lease to cater to this demand. Another trend in the market is the rise of short-term rentals and vacation homes. Montenegro's beautiful coastline and natural landscapes have made it a popular destination for tourists, leading to an increase in demand for short-term rental properties. Many property owners are capitalizing on this trend by leasing their properties on platforms such as Airbnb, which allows them to earn additional income during the peak tourist season.

Local special circumstances: Montenegro's accession to the European Union has had a positive impact on the residential real estate leases market. The country's integration into the EU has increased investor confidence and attracted foreign investment, resulting in the development of new residential properties for lease. Additionally, EU membership has also facilitated easier movement of people within the region, leading to an increase in demand for leased properties by both locals and foreigners.

Underlying macroeconomic factors: Montenegro's strong economic growth and stability have played a significant role in the development of the residential real estate leases market. The country has experienced steady GDP growth, attracting foreign direct investment and contributing to job creation. This has led to an increase in disposable income and improved affordability, making residential real estate leases more accessible to a larger portion of the population. Furthermore, Montenegro's favorable tax policies and incentives for real estate investment have also contributed to the growth of the market. The government has implemented measures to attract foreign investors, such as offering tax breaks and streamlined processes for property acquisition and leasing. In conclusion, the Residential Real Estate Leases market in Montenegro is developing due to customer preferences for flexibility and convenience, the trend of luxury and short-term rentals, local special circumstances such as EU membership, and underlying macroeconomic factors including strong economic growth and favorable tax policies.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 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 Leases - Montenegro

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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