Property investors looking for the latest hot spot landed in Montenegro in the early years of the 21st century, recognizing the enormous potential which Montenegro offered in terms of investment return. Property was very cheap at the time and the country was set to encourage tourism and put itself on the European map. Foreign investors arrived from Russia and UK amongst other countries, and properties were snapped up at bargain prices which led to ridiculous increases. However as the prices increased the economy plummeted along with the world recession, leaving property investors with properties on their hands at over inflated prices which rapidly fell again.
Property prices in Montenegro remain far higher than they were a decade ago, but not as high as at their peak. Off plan developments which were springing up were largely curtailed, preventing a concrete boom which may have spoilt the popular coastal towns along the Adriatic Sea. The predicted investment in increasing tourism didn’t quite materialise as planned. Although money was invested in the coastal areas the dramatic landscapes of the interior of the country failed to receive enough funds to make the necessary improvements to the infrastructure.
The wonderful historic and cultural sites are there to be seen, and the snow capped mountains provide the perfect environs to make Montenegro a first rate winter ski destination, but the roads which lead to them remain dangerous with massive potholes. In winter some of the roads are closed in the mountainous regions as simply not safe due to potholes and the possibility of rock falls.
Despite these drawbacks the natural beauty of the country cannot be denied. As the economy recovers Montenegro once again hopes to develop a name as a tourist draw, and has the benefits of a welcoming and hospitable population who welcome both tourism and foreign investment. The World Travel and Tourism Council has rated the country as one of the top two fastest growing tourist economies of the next decade, and the national tourist board is actively encouraging tourism and hoping to attract travellers who want to engage in adventure travel and dangerous sports. With the imminent inclusion of Montenegro into the European Union predicted by 2015 it looks as though the country will indeed prove to be an excellent one for property investment, if one can discover the properties which do not remain overpriced.
Investment will be most popular in the coastal towns which provide easy access to the four national parks and the mountains, but need not be limited to this area providing areas which are safely accessible by road all year round are chosen. Many of the off plan and new apartments are small but will serve as holiday rentals, whilst other new developments are larger and extremely attractive. The recession has worked in the favour of the country which might otherwise have suffered a proliferation of less attractive off plan developments thrown up in haste for the investor wanting a quick return.
With the improvements which are predicted in the infrastructure and the undisputed beauty of the country which will be a natural draw for the tourist industry which is certain to expand, Montenegro would appear to be an excellent investment opportunity if one can avoid the properties which still retain their over inflated prices and instead find investment opportunities which still allow room for growth.