Who is investing millions in property in Montenegro? Important statistics

The central bank of the Balkan country has published statistics on foreign direct investment (FDI) for the first quarter of 2025.

In the first quarter of 2025, foreign direct investment in real estate in Montenegro reached EUR 113.5 million, which is 21% (EUR 20 million) more than in the same period in 2024. This growth continues a steady five-year trend - since 2019, the volume of real estate transactions has increased fourfold, and the average price per square meter has increased by about 50%.

At the same time, other forms of foreign investment are declining:

• Direct investments in business and banks decreased by 40% (from 36.1 million euros to 21.6 million euros).

• Lending to local companies from abroad has decreased by 5.5 million euros.

This dynamic shows that large foreign investors are increasingly considering Montenegro not as a place to do business, but as a destination for purchasing residential and commercial properties.

Which countries are investing? Geography of buyers

The demand for property in Montenegro remains international, but several key countries stand out among the major investors:

• Serbia (19.2 million euros) – traditional leader thanks to proximity and cultural ties;

• Turkey (16 million euros) – an active participant in the luxury real estate market;

• USA (13.8 million euros) – interest remains, despite the suspension of the "golden passport" program;

• Germany (11.5 million euros) and Cyprus (5.3 million euros) – European investors looking for an alternative to more expensive markets;

• Russia (4.7 million euros) – despite the decline compared to previous years, interest remains visible.

Buyers from more unexpected regions are also appearing, such as Kazakhstan (706 thousand euros), Australia (485 thousand euros), Oman (14.7 thousand euros) - a signal of expanding geographic interest in the Montenegrin property market.

Sales by foreigners: profit fixation

Despite the influx of new investments, some foreign investors are starting to sell assets:

• In the first quarter of 2025, EUR 14.7 million were withdrawn, representing 13% of new investments.

• The largest sales were made by: Serbia (4 million euros), Georgia (1.8 million euros), Great Britain (1.7 million euros).

If this trend continues, the volume of withdrawals by the end of the year could cross an important threshold, potentially putting pressure on prices, especially in the secondary market.

Prices: growth slows, but there is no decline

• Average price per sq m in new construction: 1943 euros (at the end of 2024).

• In three years (since 2022), the price has increased by 44% (from 1,346 euros).

• In luxury projects such as Porto Montenegro, Luštica Bay, Kolašin, prices are significantly higher and less susceptible to fluctuations.

Why is this important?

FDI is not private purchases of apartments or houses. It is long-term capital investments by large companies in large-scale development projects. For private investors, the growth of FDI is an important indicator of confidence in the market and potential for future growth.

Based on materials from prianproperty.com