The potential for capital appreciation in Montenegro is significant and property prices are very competitive even when compared to its neighbours – 25% less than Croatia, for example.  As the Republic moves closer to EU accession proposed for 2006, property inflation is expected to rise as it did in other countries enjoying EU membership.  Over the last 3 years Montenegrin property prices have already risen by approximately 85%.  Currently the market is increasing at 20%, and upwards of 30% in the tourist hotspots.  The World Travel and Tourism Council currently put Montenegro third in the fastest growing tourist destinations in the world and forecast that it will be in first position by the year 2014, generating over 21% of the country’s total GDP.  Tourism is already up by 17% over the last year.

The government is progressively reducing its direct involvement, and is accelerating the privatisation of hotels and implementing tough fiscal policies.  Investors and tourist operators are increasingly being drawn by the investment opportunities the country has to offer.  Investments are safe and the ownership is protected and guaranteed by the Constitution.

The Adriatic coast holds the best potential for off plan investment at the moment, with the northern area being more popular and therefore more expensive.  However, the coast to the south will almost certainly catch up over the coming years.  For those seeking investment in the mountainous winter resorts there is little off plan development, but again, this is set to change as Montenegro establishes itself as a popular winter destination with improved facilities.