Podgorica, Montenegro

Colliers International, as one of the leading property consultancies in the world announces regularly Market Reports wherever we are present. In figures, that is in 61 country over 293 offices.

When it comes to Montenegro, we would say that we have already given certain forecast for the Montenegrin real estate market in our Market Report for 2007 though we have been present here officially since February 2008. That means that our projection was, even before the world financial crisis occurrence that prices’ stabilization, meaning stop of enormous increase of prices, was to be expected in 2009. We have been witnesses of decrease of prices in Montenegro prior to the biggest crash of the American market since the Great Depression in 1929 whose consequences have been present in whole world now. Speaking about decrease of prices in Montenegro before the crisis, we can say that bigger offer than demand contributed to that and a small credit ability of population  having in mind the rate of the average salary and potential credit fee, if received. An inflow of money from transactions at the Montenegrin coast and through that, a bigger demand, caused unrealistically high prices, and extremely high investors’ margin which is not a case in the West, better to say, mature markets since this one is an emerging one.

When it comes to the world financial crisis, the current and future influence cannot be neglected though the Montenegrin financial market is not as developed as the Western ones and will not suffer the level of their problems. Still, there is the influence on foreign investors in Montenegro since bank guarantees of many of them are not connected to the Montenegrin bank sector. Now, their credits are to be revised and additionally questioned. On the other side, some of them that have financial means are waiting since the crisis does not influence only on financial sector but it has been spreading to real sector, namely, sector of population. It is realistic to expect that certain projects planned to start in 2009 will not be initialized then since investors have been examining situation and have been waiting for recovery of the market. No one can give realistic forecast on moment of recovery of the world market since the crisis has been felt even by the countries for which the expectation was that they would suffer the least (UAE, Russia, for example, with the lowest oil barrel price last four years etc.)

Speaking about Montenegro, it should be said that the main projects are only to be done and their realization depends on recovery of the world financial market. Hence, it is not easy to give any forecast.

Regarding real estate prices in Montenegro, it is realistic to expect that there will be further decrease in sale in residential area. That will have a direct influence on increase of rents because of impossibility of apartments purchase (even those ones over credit) and because of bigger demand of lease.

About Colliers International

Colliers Macaulay Nicolls Inc. (CMN) operating as Colliers International is a leading global real estate services company that provides a full range of services to real estate users, owners and investors worldwide. Colliers operates in 293 offices in 61 countries.  Services include brokerage, property management, hotel investment sales and consulting, corporate services, valuation, consulting and appraisal services, mortgage banking and research.  Colliers International is a worldwide affiliation of independently owned and operated companies.  Locally, Colliers professionals serve clients throughout Montenegro. Find out more at www.colliers.com/montenegro 

Contact Information

montenegro@colliers.com

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