Rising Home Prices Outpace Wages in Croatia and Montenegro

In Montenegro’s capital Podgorica, the average price of a new‑build apartment has reached €2,395 per square metre, making a 50 m² flat cost about €119,750. With the average net salary at €1,026, buying such a home outright would require 117 average salaries, equivalent to nearly ten years of full income. Most buyers rely on mortgages limited to 40 % of earnings, extending repayment periods beyond two decades as prices climb faster than wages – a rise of more than €200 per m² in recent months has hit young households hardest.

In Croatia, property prices have also risen sharply, though experts note that wages and favourable mortgage rates have improved relative to the pre‑2008 crisis. Buyers now evaluate factors such as construction quality, transport links and energy efficiency, not just price per square metre. While demand remains strong and supply limited, especially in prime urban sites where prices can exceed €5,000 per m², analysts expect “no significant price drop, but a continued selection of the market” with slower price growth and greater differentiation based on location and quality.