National situation House prices in Montenegro grew rapidly between 2005 and 2008. During this period, they increased from about € 1-1.5 thousand per sq. m up to € 3-4 thousand per sq.m. Then the strongest collapse followed, and only by the end of 2009 the prices stabilized at the level of € 1,600 thousand per sq.m. From the lowest point, over the next four years, prices have been growing slightly, which favorably distinguishes Montenegro from many countries of southern Europe. The average cost of housing in the country is currently € 1,800 per sq.m. These figures are small and explain to a large extent the interest in local housing. In addition to affordable prices, Montenegro attracts a low tax on the purchase of real estate. It is only 3% of the value of the object. For comparison: in Italy, the amount of this fee ranges from 10% to 13%. In Croatia - 5%. In addition, the annual taxes on real estate in Montenegro are also very low - only 0.6% of the value of the property per year. Well, and in Montenegro there is a long tourist season - from mid-April to the end of October, so all this time the object you have chosen can be rented out. In April 2014, it is planned to adopt a law on granting residence permits to owners of real estate. This is also a plus for potential Russian home buyers in Montenegro. The investment interest in Montenegro can be attributed to four main reasons. Firstly, the rates of taxes on real estate, as well as on doing business, are significantly lower here than in other European resort destinations. Secondly, Montenegro occupies one of the leading places in the Balkans in the Doing Business rating, compiled annually by the World Bank. The higher the place of the country in this rating, the better the investment climate here, and the easier and safer to do business. Thirdly, the country's development potential in terms of the growth of the tourism sector in the first place in the world in 2013, according to the forecast of the World Tourism Council (WTTC). And, finally, new projects from leading developers in the country are a big plus, which inevitably leads to an improvement in the quality of supply in the real estate market and infrastructure in general, and has a positive effect on the country's image in the eyes of foreign investors. A few years ago, real estate prices were significantly higher. Now the cost of housing has dropped significantly and stabilized to its minimum. That is, the optimal time has come to buy houses and apartments in this country. Further, real estate prices in Montenegro will not decrease, but will gradually increase. " The advantage of Montenegro is that real estate in this country is in steady demand among Russians, Ukrainians and other peoples who are close in culture and religion. Also, the flow of tourists is growing from year to year. The country is developing, the legal base and infrastructure are being improved. The unique beauty of nature, visa-free regime - all this contributes to the influx of people for both short-term and long-term stays, including moving to permanent residence. This means that real estate is in demand and attracts an investor. Entry threshold The smallest price for which you can buy at least something in the beach areas of Montenegro is € 25 thousand. For this price you can buy a studio in Sutomore or Herceg Novi, about 500 meters from the beach. The minimum cost of housing, which you can earn in Montenegro, is higher - it is € 40-45 thousand. For this money, you can buy an ordinary one-room apartment with a separate bedroom with an area of about 35 square meters, including furniture. The most expensive part of the coast is the Budva Riviera. Here are located such famous resort towns as Becici, Budva, Milocer, Petrovac and Sveti Stefan, as well as 16 beautiful beaches. The second most prestigious is the Boka Kotorska Bay - it even has the status of a "World and Cultural Heritage of UNESCO". Slightly less popular, but more affordable in terms of the cost of housing, the southern part of the coast of Montenegro - the Barskaya and Ulcinj Rivieras. I consider the Lustica peninsula, as well as the municipalities of Tivat and Herceg Novi, to be the most promising region in terms of growth in housing prices. In fact, today it is a conventional triangle Lustica-Tivat-Kumbor. Almost all the largest development projects of large international investors are concentrated here. This region did not survive the "spontaneous development" during the construction boom, the supply is limited here. Large international companies are working on projects here, which build buildings in compliance with all standards, as well as not deviating from environmental requirements and observing the traditional architectural look typical of this area. As for the regions of Montenegro, all of them are promising in terms of growth in housing prices. First of all, I will note the Budva Riviera, secondly, it is the Barskaya Riviera, and thirdly, the Boka Kotorsky Bay. In order for the investment to be successful, you need to be well versed in the situation - where to buy, what to buy, from whom, and at what price. You can collect information for a long time or contact a qualified specialist that. A novice investor may have problems if he has not studied the market situation enough or has not used the advice of an expert. Sales prospects According to realtors, those people who invested five to six years ago in buying land in Montenegro have made a solid profit. The fact is that the price of land has grown significantly during this time, more than doubled. The purchase of land for the construction of an object is still one of the most popular types of investments in Montenegro. The problem is that not all land plots have DUPs that guarantee the legality of construction. In Montenegro, 50-70% of the proposed land plots are not included in the so-called detailed urbanization plans (DUP). It is the DUPs that determine the construction standards for a given site (height, building factor, maximum permissible area, style, materials, and more. Those who invested in apartments then lost a significant part of their funds. Apartments fell in price by 20-25% during this time. The most liquid real estate now is located in large coastal resorts such as Budva, Tivat, Kotor, Herceg Novi, as well as in such popular settlements among Russians as Bar. Here, as a rule, primary real estate is purchased in a low price range - both in terms of cost per square meter and for the object as a whole. I feel like apartments are more popular than houses. The most liquid is the contribution of funds to low-rise construction with small-sized apartments - 40-45 square meters worth € 50-60 thousand. There will be a queue for such apartments, since this is an option for any wallet. The most liquid types of real estate are apartments with an area of 50-70 sq. m and houses with an area of 80-100 sq. m. Rental prospects The yield from the rental of real estate in Montenegro is 4-6% per annum. This is not a lot and not a little, in general, as elsewhere. Russians often rent out housing they bought in Montenegro. According to realtors, when choosing objects, Russians consider them primarily from the point of view of liquidity ... And secondly, from the point of view of leasing. Of course, not everyone dares to offer their own apartment to other people, but many people think about it. Having decided to rent, the Russians resort to the help of management companies. Their services account for up to 20% of the profits. If we talk about the most interesting regions in terms of rental income, these are Budva and the settlements of the Budva Riviera, such as Becici, Rafailovici, St. Stefan, Petrovac. In addition, Tivat and the settlements located on the Lustica peninsula are rapidly gaining popularity. The largest income from the rental of real estate in Montenegro is generated by properties located in the Budva Riviera. The Barskaya Riviera follows. When looking for housing for rent, you need to pay attention, first of all, to the proximity of the object to the beaches and infrastructure. The greatest income comes from renting offices in the capital - Podgorica or small apartments in large resort cities - Budva, Kotor, Bar, Herceg Novi. For short-term rent, renting out to tourists a small apartment - 35-40 sq. m - you can earn € 5-7 thousand per season. Output Montenegro justifies its status as one of the most popular countries for Russians, not only in tourism, but also in terms of investment. The main advantage of investing in this country is the low taxes on the purchase and ownership of real estate. If, in the near future, a law is passed on granting residence permits to buyers of housing in this country, its popularity among our compatriots will increase significantly. To resell real estate in Montenegro or rent it out - each investor must decide for himself. Both that and another bring in this country some profit, not huge, but very good by European standards. Taking into account the long tourist season and the huge popularity of the country for Russian tourists, there is no need to fear that the object will be idle without a tenant.