Real estate balance shifts in the region: Rents have declined

The real estate market in Budva, one of Montenegro's most well-known tourism centers, has changed direction. Housing prices and rents, which had risen for a long time due to interest from foreign investors, have come under pressure recently as property owners have turned toward selling.

According to information based on local real estate agencies, the fact that citizens of Russia and Turkey, in particular, have put their properties up for sale has increased the stock of both properties for sale and for rent in the region. The increase in supply has led to a decrease in monthly rental prices by between 100 and 200 euros.

It is reported that one-bedroom apartments, which were previously rented in the 600-700 euro range, are now finding tenants at the 400-500 euro level. According to industry representatives, this correction in the market is expected to continue in the coming months.

UNCERTAINTY ACCELERATED THE DECISION TO SELL

Administrative processes, sanctions, visa uncertainty, and rising living costs are cited among the main reasons for the change in the market. It is noted that Russian citizens who have settled in Montenegro since 2022 are experiencing problems with residence permits, visa procedures, and international banking transfers.

Regulations regarding residence permits in exchange for real estate investment and expectations regarding the future of visa exemptions are also affecting investors' decisions. Real estate consultant Tomislav Rankovic stated that these uncertainties have accelerated departures and that approximately 15 percent of the Turkish population in the region has left Montenegro.

While some investors who have converted their properties into cash are turning to lower-cost countries, others prefer to return to their home countries. This trend brings with it comments that the real estate market in Budva, which has risen rapidly in recent years, is entering a period of more balanced pricing.

News Source: 12punto