Effects of tourism on real estate market

  • 24.July 2019
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You probably noticed Montenegro’s rising popularity as a tourist destination in international media. Boka bay, riviera, national parks, mountains – these are only some of the attractions that are putting Montenegro under the radar of foreign tourists. When we add to this the improved flight connections with major European and world cities, no wonder many have Montenegro on their bucket lists.

“Main focus is on coastal area, especially Kotor and Boka bay, which tourists usually choose as their “base” from where they can explore other parts of the country. All these elements affect the local real estate market, having in mind that tourists now often choose private accommodation over hotels in order to get to know the people and customs of the country they’re visiting better.  One bedroom apartments in the bay are in high demand, but we occasionally get requests for large flats or entire villas which are perfect choice for families or large groups of friends. Prices for short-term lettings in Kotor range from  €100/day for one bedroom apartments to  €1,000/day for luxury villas. What’s typical for these guests is that they prefer travelling in spring and fall to avoid crowds which eventually extended the letting season in the Boka bay from beginning of April until October. Even though short-term lettings are quite demanding for the owners of the properties, they bring excellent return on investment.” – says Mijat Jovanovic, manager at real estate agency RE/MAX Boka Home in Kotor.

One bedroom apartment in Dobrota, Kotor

Beautiful nature, relaxed lifestyle, prices and taxes lower than in other European cities, are some of the reasons why more foreigners decide to move here. “This trend is actually not a surprise, having in mind that over the past two years Montenegro was several times on the lists of best countries to invest in real estate in Europe. In most cases foreigners tend to rent a property during first two years of their stay in the country after which they come to a turning point – they either buy a property and stay in Montenegro or they leave.”

One bedroom apartment in Orahovac, Kotor

If you are interested in buying, selling or renting a property in Montenegro, contact our agents for all the details.

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