Montenegro real estate prices rise amid construction boom

Montenegro is experiencing a sustained construction boom, with the value of construction works in the second quarter of this year increasing by 6.3 percent compared to the same period last year, according to Monstata data.

Real estate prices are rising alongside this activity. The average price for a square meter of new construction in Montenegro reached 2,557 euros in the second quarter. Regional variations are significant: Podgorica averages 2,510 euros per square meter, while coastal areas average 2,838 euros. In specific coastal locations like Tivat, prices for properties under construction have risen from previous levels of 1,700–1,800 euros to nearly 3,500 euros per square meter.

Demand remains high, with many apartments selling before construction is even complete. Real estate agents note that while foreign nationals are the primary buyers on the coast, domestic citizens dominate the market in Podgorica. Mile Grujić, Chairman of the Construction Committee of the Montenegro Chamber of Economy, noted that the growth in construction value applies to both high-rise residential buildings and low-rise infrastructure, such as roads. However, the sector faces challenges including rising fuel and material costs, as well as labor shortages.