Montenegro is exhibiting clear indications of an overheated real estate market, creating a bubble that poses a serious risk of bursting, as warned by representatives of the Tenants’ Association – Moj dom.

“In such a scenario, the most vulnerable will bear the brunt once again, while investors may withdraw their funds from the country,” the Association cautioned.

They pointed out that Montenegro displays signs of an overheated real estate sector, including escalating prices, an oversupply of luxury apartments, abundant supply without corresponding demand, and a dependency on tourism.

The Association asserts that the housing market in Montenegro operates not for the benefit of its residents, but primarily for profit, with more construction aimed at foreigners and tourists than at local inhabitants.

Discussing the alarming data regarding the housing stock, announced investments, and the housing crisis, they noted that Montenegro is essentially a land of vacant apartments and tenants without homes.

“Data from Monstat’s 2023 Census confirms the sentiments tenants have harbored for years, illustrating that the housing market in Montenegro prioritizes profit over people. Over 178,000 apartments are not in regular use, with 71,200 of them permanently vacant or abandoned,” the Association revealed.

This suggests that one in every four apartments in Montenegro is tenantless, while countless individuals live in precarious conditions with unaffordable rents, lacking legal protections and facing the threat of eviction, especially seasonally.

The Association criticized the current housing construction model, which does not address the needs of workers, young individuals, and families, but instead promotes luxury and seasonal apartments for affluent investors, exacerbating social inequality, gentrification, and migration.

“In practice, more developments in Montenegro cater to foreigners and tourists than to its residents,” the Association stated.

They highlighted that tenants now represent an increasingly significant demographic, including students, young couples, single parents, and workers from healthcare, education, and the private sector.

“Yet, they possess almost no legal, economic, or political protection. Without a subletting law, subsidies, secure contracts, or the right to long-term accommodations, subtenants live as visitors in their own cities,” the Association expressed.

They believe that proposed projects, such as Velje Brdo and the €3.5 billion investment in the Municipality of Ulcinj, have the potential to help alleviate the housing crisis, provided they are managed wisely.

“If these initiatives result in new elite apartment complexes, Montenegro will forfeit another opportunity to establish a fair, functional, and inclusive housing system,” the Association remarked.

The Association demands that each project ensure at least 30 percent of affordable housing units, involve local communities in the planning process, be subject to public oversight, and align with a wider public housing strategy.

As they announced, the Association proposes a concrete and practical model to stabilize the housing market and protect tenants, which includes a law on tenants, subsidized rent for youth, families, and workers, and the establishment of a public housing fund.

The proposed model also advocates for cooperative housing, a tax on vacant apartments, and the regulation of tourist rentals.

They insist that Montenegro’s institutions must choose whether it will be a land of privileged investors or a nation where dignified housing is a right for all.

“We tenants are not guests in our cities. We are citizens and demand our right to a home, security, and quality of life,” the statement concludes.

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