Montenegro Property Well Poised for Rapid Post-Crunch Growth

Montenegro property prices grew rapidly between December 2006, when it split from Serbia, and Q4 2008, when the credit-crunch dampened growth almost everywhere. This growth happened on the back of massively rising tourism, as Montenegro regained its position as a top tourism, it had held in the 80's when the country became a chic destination for the rich and famous, including rince Charles.

Montenegro property has not seen any major price correction, in fact prices, even of off plan property in Montenegro are holding firm. This is because tourism to the country continues to grow, and because finance is still available, most importantly to Small and Medium sized enterprises -- not least because EU and other bodies' financial assistance of late to keep Montenegro on track to become a full member of the EU.

Off plan apartment prices in Montenegro grew so much in the timeframe detailed above, that prices are now comparable to off plan apartments in the traditionally popular destinations within France and Italy. But even at their current prices there is still plenty of room for growth; especially given that off-plan apartments can still be found priced at between 30 and 60 percent less than their counterparts on the resale market, therefore giving off plan buyers instant equity.

It is true that some places which haven't seen a major price correction may have difficulty kick-starting renewed growth, as buyers favour the bargains to be found in markets that have, but I doubt that is true of Montenegro, where continued growth in its popularity with tourists will create continued demand, which is met only by an equally balanced supply in a country with no over-development problems.

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