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Everything you need to know about construction in Montenegro

Everything you need to know about construction in Montenegro

Montenegro is a small country on the Balkan Peninsula with a developed tourism industry and potential for infrastructure development. Increasingly, investors are choosing to build houses rather than buying ready-made ones.

We tell you why this happens, what are the nuances and how much it costs to build a house in Montenegro.

Pros and cons of investing in construction in Montenegro

Montenegro has many advantages for those looking for investment opportunities in real estate and infrastructure development, making it one of the most interesting places to invest in the region:

  •  Montenegro has favorable conditions for investment and a relatively simple procedure for registering a business. In addition, the country has low income and property taxes for foreign investors.
  •  The tourism sector is developed in the country. Montenegro attracts tourists from all over the world with its nature and views. Investing in building houses can be very profitable.
  •  Property prices in Montenegro are much lower than in other popular tourist destinations in Europe.

The economy of Montenegro is growing. There is potential for development not only in the tourism industry, but also in other sectors such as energy, transport and technology. Investing in construction in this country can be profitable in the long run.

  •  Stable political situation and adherence to European values. This can provide investors with an additional sense of confidence in their investment.

Montenegro has a temperate Mediterranean climate, most days of the year are sunny. This makes it attractive to people who want to live in a warm climate.

Despite the fact that Montenegro is an attractive investment market, this market has its own risks and limitations:

  •  Competition in the selection and acquisition of land for construction in Montenegro is quite high, especially on the coast, where many investors are interested in real estate resort areas.
  •  In Montenegro, the procedure for obtaining the necessary building permits can be quite complex and time-consuming. This disadvantage can be leveled if you turn to professionals for help.
  •  The Montenegrin economy is highly dependent on the tourism industry, which can create instability in the country’s economy. In addition, the seasonality of tourism may mean that property in resort areas can only be used during certain periods of the year.

Legislative basis for the purchase of land

Laws and regulations strictly regulate the process of selling land in Montenegro. Compliance with these laws is mandatory for anyone who wants to invest in real estate in this country. The Aliens Act allowed the purchase of land by non-residents in 2009.

The first document that you will receive after purchasing a building plot is the owner list. It will be necessary for the execution of all subsequent permits. Then it will be necessary to obtain the Urbanistic-technical conditions, the Conceptual Solution, obtain consent from the chief architect of the city, complete the main project and send it for revision, conclude an Agreement on payment for communal equipment of the land. Only after that you can submit an Application for the start of construction to the Ministry of Tourism.

Construction can only start 15 days after the application is submitted.

If you plan to deal with all the documents and contracts on your own, you should be prepared for the fact that Montenegro is a bureaucratic country, some processes may be delayed in time.

To facilitate the task, you can not engage in the selection of a site and paperwork on your own, but entrust this process to professionals.

Construction features

Construction in Montenegro is a perspective and attractive sector for investors. However, before starting a project, there are a number of steps that must be completed.

The development of project documentation is the first important step. The building plan must be carefully designed and include all necessary project details, including design, dimensions and use of materials.

Search for a contractor – find a reliable and professional contractor who has the necessary knowledge and experience and at the same time will not disrupt all construction deadlines, but will perform his work with high quality.

The choice of building materials is another key aspect of construction. Montenegro offers a wide range of quality materials. Among them, it is necessary to choose suitable materials that will match the design, budget and features of the climate zone.

Registration of new buildings is the final stage, which includes the execution of all necessary legal documents to obtain ownership of the property.

How much does it cost to build a house in Montenegro

The price of construction in Montenegro is formed from several items of expenditure:

  • Costs for the purchase of a plot: on the coast, the cost for a plot of about 500 m² tends to be 150 thousand euros. The farther from the sea and big cities, the cheaper.
  • Mandatory property tax 120-180 euros per m², depending on the region.
  • Registration of all permits for the start of construction will cost at least 5 thousand euros.
  • Direct costs for building and finishing a house (construction and finishing materials, work of construction teams, rental of special equipment) range from 700-800 euros per m² for self-construction. Hire a company that will make everything turnkey more expensive, but in this case, your participation in the construction will be minimal.
  • As a result, the price of a house in Montenegro will be approximately 300-350 thousand euros, which is often more profitable than buying a finished house.

Let’s summarize

It is possible to build a house in Montenegro without the involvement of a contractor company, which will completely free you from participating in the construction. But in this case, you need to be ready to devote a lot of your time to the process, bear the risks of unscrupulous performers, delaying paperwork and mistakes in construction associated with the specifics of the climatic zone.

If you would like your investment to start generating income as soon as possible, you can contact our company. We can help with the selection and purchase of a plot, the execution of all permits, the construction of a house directly with a subsequent guarantee and its commissioning.

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