The prices for apartments in Montenegro have risen alongside increasing incomes. Analysis from the banker.me portal reveals that today, just as ten years ago, purchasing a square meter of an apartment requires two average salaries.

As of December 2024, the average net salary in Montenegro was 1,012 euros, compared to 484 euros in the same month a decade prior.

According to official statistics, the average cost per square meter for a new apartment in Montenegro in 2024 was 1,936 euros, whereas ten years ago, it was 1,037 euros per square meter.

This indicates that around ten years ago, with an average salary of about 500 euros, a square meter cost approximately a thousand euros, equating to two average monthly incomes.

“Today, the situation remains nearly unchanged. The price per square meter is close to two thousand euros, and with average earnings reaching a thousand euros, at least two average salaries are needed,” states the banker.

According to official data from Monstat, the average apartment price in Podgorica was 1,938 euros, 2,076 euros in coastal regions, while in central areas there were no new apartment sales recorded in the northern region. The square meter price in the fourth quarter increased by 84 euros compared to the previous quarter.

Rising Apartment Prices and the Influence of Global Factors

Significant growth in real estate prices has been observed in recent years. At the start of 2022, a square meter in a new building was priced at 1,256 euros, escalating to 1,936 euros by last year.

“It’s understandable for citizens to demand compensation as they would find it easier to buy property with rising incomes through initiatives like Europe USA 1. However, global factors have intervened to complicate this. Real estate prices have surged dramatically due to global economic disturbances. The price increases that began during the pandemic persisted after the onset of the war in Ukraine, leading to disruptions in energy supply and rising costs of heating oil and gas. These energy fluctuations impacted the production of construction materials and transportation, consequently driving up construction expenses,” the analysis from bankers elaborates.

Moreover, disruptions in logistics chains and soaring container transport costs, particularly from China as the leading producer of construction materials, have also influenced construction expenses.

High Demand and Limited Supply

The rising prices in both rental and residential real estate have also been fueled by significant foreign demand. In 2022 and 2023, numerous Ukrainian nationals found refuge in Montenegro, many of whom purchased property. Alongside them, noticeable numbers of buyers are from Russia, Serbia, and Turkey, while an increasing segment of the Montenegrin diaspora is also investing in the real estate market.

According to Mile Gujić, President of the Construction Chamber of Commerce, supply has remained tight, and with rising prices of construction materials, energy, and labor, the costs of real estate have further increased.

“Estimates suggest that constructing a square meter of apartments in the capital, excluding other expenses (like projects, audits, supervision, permits, coastal land), costs about 800 euros,” Gujić stated.

In Podgorica, apartment prices range from 1,700 to 2,500 euros per square meter, based on location. In popular tourist areas, prices soar even higher, with some square meters costing several thousand euros.