It’s a well known fact that Podgorica is the most attractive Montenegrin city when it comes to buying real estate. This especially proved to be true in 2019. The past year was very successful from the real estate perspective. Especially dynamic was the market in the capital city which resulted in the price increase and introduction of some new trends.
Buyers were mostly interested in the new buildings, mostly because they get a ready-to-move-in property, while apartments in old buildings always require renovation.
Average prices per square meter in Podgorica increased by 8% since June. The largest price jump was in Tološi area where the highest price per sqm was €1.400 which has now been increased to €1.600. The reasons behind that are several smaller luxury projects that are under construction.
A price-jump happened in Momišići as well – €1.800/sqm. The only area with a price decrease is Gorica, mostly due to the majority of the properties being large luxurious apartments which have not been in demand over the past few years. The prices now start at €1.300/sqm and go up to €2.000/sqm thanks to the luxury building next to the St. George church.
Areas around Delta shopping center and City kvart are still very popular and their prices increased by €100/sqm in average. The most expensive apartment in City kvart was sold for €1.750/sqm, while the lowest sales price was €1.450/sqm. The reason for this is the excellent income from renting the properties, which is why this area is very popular among investment buyers. Upon the completion of new projects around City kvart and the introduction of new units into the rental market, the prices will become more stable or even drop slightly.
New projects in Zabjelo, Ljubović and Zagorič are keeping the prices stable (€1.000 – €1.200/sqm) and it looks like it will stay that way for a while. An important thing to keep in mind is that the construction sector is lacking workforce, which affects the timeline of the projects even though construction companies are not facing financial issues. This can cause a price jump but also a delay in delivery. With this in mind, if you’re buying a unit in a building that is under construction you better arm yourself with patience.
You could say that Podgorica’s real estate market can be split in two parts: the first one with the properties from €1.000 to €1.200/sqm where the price is the main requirement for a buyer and a price variation of €500 can be a deal-breaker; and the second one with prices over €1.400/sqm where location, design and quality of materials play an important role for a buyer.
If the investors are wondering what the buyers are really looking for, our answer would be: one-bedroom apartments for up to €55.000, preferably in the Preko Morače area.
The question remains whether the current trend will continue or if 2020 will be marked by a price drop. Find out more in one of our upcoming articles.