From the Adriatic to Belgrade - Where is it most profitable to invest in real estate today?

Montenegro is currently in an extremely favorable investment moment, which rarely occurs and is a unique opportunity for investors. The combination of economic development, the process of accession to the European Union and the growing perception of security make this destination particularly attractive. Right now is the moment when the market is showing strong potential, but still offers room to realize significant returns. That is why Montenegro is increasingly positioning itself as one of the most desirable investment destinations in the region.

This was announced from the panel "Housing market in Montenegro and the region: towers and urban innovation" at the recently held RE:D conference in Budva.

- I call it "momentum" actually. When someone comes to us for investment advice, we always tell them that now we have an opportunity that probably won`t happen again in the near future. It is a turning point marked by a strong motivation to enter the European Union. We are not there yet, but the perception of security is already emerging. We cannot speculate with certainty on the exact date, but the assumptions are that it could be in 2028 or 2029, which is relatively close. This would bring additional European security. The only question is who will recognize that moment and whether we will take advantage of it, she said.

- We recognized that moment and we are already seeing the effects of our investments - we have great demand, not only from the markets that are traditionally interested in our country, but also from a wider area. A special surprise for us were the investors from South Africa and South America, who achieved serious results on their markets and are now coming to us. This clearly shows that we are recognized at the global level - She says.

She emphasizes that Montenegro is a small market territorially, but with extremely rich natural and other resources.

- Nevertheless, I would like to use the opportunity to draw the attention of institutions and decision makers to the problem of statistics. The data we often see does not fully match the reality - which is actually much better. Unfortunately, data sources are not always relevant enough, so it is necessary to work more seriously on that segment. As the president of the Real Estate Agency Group at the Chamber of Commerce, I can say that we are actively working on it. In cooperation with the Association of Appraisers, we are planning the development of a new platform that will provide more accurate and up-to-date data from the market, directly from those who take part in transactions every day - she revealed.

In this way, she adds, we will not have to rely exclusively on the payment transaction data of the Central Bank or other indirect sources, which often do not provide the complete picture.

- In a relatively short period of time, we will be able to offer better statistical insights, which, I believe, will positively surprise many. Taking all this into account, I believe that Montenegro is currently, perhaps even more broadly, one of the safest markets for investment. Given that the value of the market is constantly growing, and that, according to information from the field, it will continue, now is the right time to invest. Because, if not now, then when - Nataša Grdinić concluded.

- Projects that will make a breakthrough should be developed. We have buyers who buy apartments for living, but also for investment. That whole cycle around the real estate itself, that`s what people buy, and that`s where you should look for additional value - said Cajić.

Speaking about the development of towers, he said that they have always been a matter of reputation, but that the success of such projects depends on the implementation of the real needs of both investors and the environment, as well as the level of market development, that is, whether the market is ready to realize such a project.

- Maybe there are individuals who worked in international companies and came to work in the domestic market, but if there are no companies that can manage the project from a developer`s perspective, to think about it, strategize, if there are no adequate designers to design it, if there is no technical control, then such a project has a high chance of not reaching its peak. However, in the last 10 years, the market in Belgrade has been constantly growing, all actors from designers to contractors have been educated, so that everyone understands the very important aspects of such investments, therefore, the market has progressed so much that it can realize such facilities with an adequate strategy - said Cajić.

- Through the examples we went through, through public insights, criticism from the professional public, as well as from the general public, we realized that there are certain types of criticism: more greenery, more light, more sunlight, better materials - all of these are real needs of the population. There is also a lot of emotional criticism, but through the process of looking at the real needs, we managed to implement the project tasks, form a strategy, so that when our project was presented to the public, it passed almost without criticism, with a certain amount of public attention. There were also those who were dissatisfied, because they have projects nearby that provide them with a certain level of comfort. However, if the project is approached in an adequate way and all problems are considered, such a project raises the value of investors, developers, raises the value of the neighborhood, i.e. the immediate environment, raises the value of that part of the city and all actors who gravitate towards it - he said.

Miodrag Gazibara, the Marina Dorćol project, indicates that nothing happens quickly in the real estate market and that it is necessary to look even year by year in order to follow trends, growth and declines. He also mentioned how things are in Serbia when it comes to sales.

- Annually, apartments are sold in Belgrade, the value of which is around EUR 2.5 billion. When you see how small the share of purchases on credit is, it is obvious that a large part of the market is investment buyers. They reason differently. The market is seeing a shift compared to a few years ago. The price in Belgrade almost never drops, even if there is a drop, it is not a big one. The record year for the number of apartments sold in Belgrade was 2022, when the Ukrainian conflict broke out - Gazibara pointed out.

- Of course, not physical cash. About 30 - 40% are purchases on credit, while the average loan amount is EUR 40,000 - he said.

- It is important that, when you have a large project, you can offer much more than a standard complex that only has premises on the ground floor, that you have responded to as many needs as possible and that as an investor you do not rely only on investment buyers, because price growth is quite limited there. Investment buyers, in general, always buy smaller apartments. Even a smaller apartment has a certain final value, because the investment buyer looks at the rent. He looks at it through the increase in value, but he primarily looks at it through rent - he stated.

- Close to 50% of the apartments have been sold, so when you ask me how difficult it is to develop such projects in the inner city of Belgrade, from this point of view, it seems quite easy. However, a few years ago, when the plot was purchased, it seemed like an impossible mission - to pay such an amount for the plot, arrange the infrastructure and at the same time provide that quality of materials, but also the quality of comfort - Gazibara said.

In the Marina Dorćol project, two to three apartments per floor were designed. That, he says, was the idea - to offer a level of privacy that is one of the key elements that customers are looking for when shopping for themselves. That`s why it was quite a challenge to fit it all in.

- The project was created in such a way that there was simply no real benchmark at that time, so that you can say that someone has already done something similar, so that you will be 10-20% more expensive. The project was developed in accordance with the wishes of the investor, and it is good that in this case the architect played a major role. He managed to fight for all those elements within the project, including green facades, sustainability and everything that was planned. It is not easy when you do not have a clear example that you can rely on when making decisions. It seems easy now, but at that moment it wasn`t easy at all - concluded Gazibara.