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Montenegro attracting renewed interest

Catherine Deshayes

According to new research, a growing number of travellers and investors are considering the beautiful, but troubled, country of Montenegro.

According to Government statistics, more than 610,000 tourists visited the eastern European country between January and July of this year, which is five per cent higher than the amount recorded over the same period of the previous year.

The country's rental market is benefiting from higher visitor numbers, as it is creating extra demand for temporary lodgings in many areas.

PR Adviser at the Montenegro Tourism Ministry, Ivana Bulatovic, said, "Tourist product has diversified and there is an increasing interest for mountain, nautical, health, religious, congress, as well as other types of tourism."

Earlier this year, the tourism sector was boosted when Montenegro Airlines began operating a twice-weekly service between Tivat and London's Gatwick Airport.

When tourist numbers start to rise, so does interest from foreign property buyers, who start to consider investment opportunities in the country, which they may previously have overlooked.  

The property sector in Montenegro embodies the true concept of an emerging market; there's potential, risk and opportunity in equal measures and the investment property buying process in Montenegro is far from solid. 

The undeniable potential in this beautiful country is tainted by its unstable past, current high current levels of poverty and the fact that it is as yet relatively inaccessible particularly from the UK and Western Europe.

However, since 2000 when Montenegro opened its property market to attract foreign investment in compliance with EU and International standards, and the subsequent changes in the land laws of Montenegro, foreign investors have had equal status with Montenegrin investors, with full deeds and title to land and real estate.

To further encourage foreign investment the DTI introduced a UK Trade Partnership in 2003 to re-build pre-troubles trade links with the UK, and the Government of Montenegro has introduced legislation to support and encourage investment, which includes Free Trade Zone status for suitable foreign investments, repatriation of earnings and residency rights. 

According to BuyAssociation, the eastern European country is attracting attention because investors are predicting strong growth in the market.

The optimism is based on the fact that a number of neighbouring nations have experienced housing booms in recent years, such as Bulgaria, Slovakia and the Czech Republic.

As a result, they have proved to be highly lucrative locations for many overseas property investors.

Paul Collins, Property Editor at BuyAssociation, said, "Countries that are nearby another country that's become a huge emerging market take on more importance."

"Authorities in Montenegro are reforming the property-buying system in order to make it easy for foreign nationals to enter the market," Mr Collins added.

Another property site, NuBricks.com, recently described Montenegro as a country which is on the up, stating that the nation has all of the necessary ingredients needed to become a highly prosperous property market.

To browse properties in Montenegro, visit www.themovechannel.com/property/Montenegro/