Montenegro Investment: Economy
Montenegro property investment has only recently become attractive since Montenegro is one of Europe's youngest countries. However, Montenegro, which became independent in mid-2006, is showing promising signs of economic growth particularly in its tourist sector. EU entry is a priority for Montenegro - and a huge advantage for the investor in Montenegro properties - and the combination of a growing economy and increasing visitor numbers augurs well for the future of real estate in Montenegro.
Under the auspices of the World Bank, Montenegro has initiated a 4-year strategy to encourage private sector investment in the economy. Montenegro boasts high foreign direct investment, which is currently experiencing huge annual increases. GDP growth is estimated at around 6% for the next few years and economic analysts predict a bright future for Montenegro. A strong economy also increases potential for investment in Montenegro property.
Montenegro Investment: Tourism Potential
As well as a strong economy, Montenegro also shows promising results in the tourist sector. Visitor numbers increased by 19% over the first 9 months of 2007 and the World Travel and Tourism Council claims that Montenegro is the ‘fastest-growing travel and tourism economy in the world'. Tourism is expected to increase hugely over the next few years to the point that in 2016, revenue from the industry will account for more than 22% of Montenegro's GDP. Government investment in tourist infrastructure is underway and Montenegro is now firmly on the holidaymaker's map. Montenegro property investment is therefore a compelling choice.
Montenegro Investment: Property Returns
The Montenegro property market is currently showing excellent returns. Since independence, capital gains in Montenegro properties - for example, in locations such as Kolasin, Podgorica, Sveti Stefan and Tivat - are in the region of 20% throughout Montenegro and property for sale in north west Montenegro has seen increases of 30%. Montenegro property in resorts such as Herceg Novi and the Budva Riviera is a particularly impressive property investment in Montenegro and coastal properties generally are expected to double in price within the next 12 months.
Continue to our Montenegro buyers guide.
