Montenegro Investment: Economy
For property investment in Montenegro, which became independent in mid-2006, there are promising signs of economic growth, particularly in its tourist sector. EU entry is a priority for Montenegro – and a huge advantage for the investor in Montenegro properties – and the combination of a growing economy and increasing visitor numbers augurs well for the future of real estate in Montenegro.
Montenegro has initiated a 4-year strategy to encourage private sector investment in the economy and boasts high foreign direct investment, which is currently experiencing huge annual increases and has more than quadrupled since 2005. Montenegro’s GDP growth was forecast at 6% for 2008, however, in Q1, actual growth was a healthy 8.1%. Economic analysts predict a bright future for Montenegro and its strong economy increases potential for investment in Montenegro property.
Montenegro Investment: Tourism Potential
As well as a strong economy, Montenegro also shows promising results in the tourist sector. The World Travel and Tourism Council ranks Montenegro as 5th in the world in terms of tourism growth, an integral part of the economy and it contributed nearly 25% of the country’s GDP in 2008. The government has implemented the Master Plan for Tourism Development (in place until 2020) and aims to diversify Montenegro’s tourism products and markets. Montenegro property investment is therefore a compelling choice.
Montenegro Investment: Property Returns
The Montenegro property market is currently showing excellent returns. In 2007, property prices in the capital Podgorica increased by up to 20% on figures for 2006 and forecasts for 2008 are similar. Property prices in Montenegro are highest in Budva and surrounding districts, while Montenegro property returns in resorts such as Herceg Novi and the Budva Riviera are particularly impressive in terms of property investment in Montenegro. Several high-end Montenegro developments are currently underway including the £200 million Porto Montenegro at Tivat and the Montenegro Amanresort on the exclusive island of Sveti Stefan.
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