Invest in EU's Newest Star: Montenegro Boom Await

Created27.01.2024, 10.00
Updated01.02.2024, 23.45

Montenegro is on the verge of becoming an EU country. Its full accession is expected to be granted soon.

Other than Montenegro itself, there are nine current candidate countries for EU enlargement. However, Montenegro is the frontrunner among the Western Balkan countries for EU membership.

Looking Back to Montenegro’s European Union Candidacy

EU FlagMontenegro formally submitted its application to join the EU in 2008. There were obstacles and concerns about certain subjects such as Soviet influence and the unstable politics at the time. As time passed by, Montenegro has eliminated a significant part of these concerns one by one an EU-oriented approach. Slowly, but surely approaching the goal.

The country was granted candidate status 2 years later, in 2010. The membership negotiations began in 2012 and now almost reached the finish line. Meanwhile, Montenegro officially signed two agreements with the EU in 2007. The first one is the Stabilisation and Association Agreement (SAA) and the second is the Interim Agreement.

These agreements focus on solving trade-related matters between the European Community and the Republic of Montenegro. The SAA established a free trade area between the EU and Montenegro. It was a beneficial move for both, significantly enhancing Montenegro's access to the EU's Single Market.

With that move, Montenegro formally committed to an association with the European Community and its Member States. The Montenegrin government acknowledged its responsibility to build a positive and collaborative future between the EU and Montenegro.

The country appreciates the broad support from the EU itself with big-budget investments. It also receives the endorsement from EU member officials themselves. These include especially Ursula von der Leyen, the President of the European Commission.

Montenegro to Close the Ranks with the EU

overlook of a town connected with the seaRight after Jakov Milatović’s presidency achievement in the elections of 2023, Montenegro accelerated the reforms that would facilitate its candidacy progress. Milatović’s Europe Now! The movement focuses on fulfilling the main requirements that Montenegro needs to become a part of the European Community.

While expressing congratulations for Milatović’s success, EU's Enlargement Commissioner Olivér Várhelyi has shown their further intentions of cooperating with the Montenegrin Government. Várhelyi also stated that they look forward to closing the ranks with the new president of Montenegro to expedite the necessary reforms on the EU path.

The President of the EU Commission held discussions with key Montenegrin officials shortly after the election. Expressing satisfaction, von der Leyen acknowledged Montenegro's longstanding status as the most advanced candidate in the Western Balkans for EU membership.

There are 35 main chapters of the EU membership acquis. Each chapter is dedicated to distinct domains. These include justice, freedom, safety, legal stability, and various segments of the economy.

Among them, 33 chapters have been opened by Montenegro, while there are only three of them still waiting. According to Milatović’s realist point of view, he foresaw the timetable of their accession as their membership will be ratified in 2027, and fully granted in 2028.

Why Montenegro Becoming an EU Member is a Major Deal for Investors?

buildings on the hill with sea and beachMontenegro’s EU membership is a big deal around the business world since it will remarkably multiply future opportunities that come with an investment in Montenegro.

In recent years, the small country by the Adriatic has shown notable growth. Montenegro’s improvements can be seen especially in lifestyle quality, finance, and business. Montenegro has the highest GDP per capita of the Western Balkan countries. The per capita prosperity is 55% of the EU average.

The SAA and Interim Agreement have been quite beneficial to accessing broader markets, especially for business owners over a decade now. However, EU membership will bring more flexibility for enterprises. The prospect of full EU membership will have notable impacts on modernizing the economy and enhancing its business environment.

The efforts to climb up to the same level as the EU countries have already resulted in increased foreign investment. There is also a particular focus on attracting funds from EU member countries. Investors often wonder about how can EU citizens buy property in Montenegro as an investment. The positive impact on economic growth is expected to extend even further with full EU membership.

As for non-EU investors, “How to get permanent residency in Montenegro?” is a frequently asked question. To get residency and citizenship in Montenegro, the country’s EU candidacy has turned it into an attractive hotspot. Non-EU passport holders often choose real estate as a main instrument to get a Montenegro residence permit by investment. Even right now when the time is closing in, the attention to Montenegrin properties is getting intense rapidly.

Investing in real estate in Montenegro will not only allow investors a wonderful chance to make money out of their savings. It will also give them the ability to reside in an EU country and travel visa-free in the Schengen countries. Buying real estate in Montenegro will be remarkably beneficial to real estate investors who seek visa-free movement in the EU. They will be able to travel with their residence permit in Montenegro in the Schengen zone. It is like two birds with one stone.

Montenegro Emerging as a Rising Investment Hotspot

Over the past few years, Montenegro has been a prime spot for investors, especially property buyers. There are a few reasons behind this attraction. These include reasonable real estate prices and their high yield potential. The perfect environmental conditions and low costs of living in Montenegró were also attractive reasons that appeal to digital nomads. And of course, last but not least, the highly expected EU membership.

Montenegro’s real estate market stands out as a fault-tolerant marketplace. According to the IMF, the country’s estimated economic growth will increase by 13.8% over the next five years. Real estate investors find the promising sustainable growth rate encouraging. It indicates a sustained increase in demand and property values over the long haul.

On the other hand, Montenegro’s Fragile State Index score in 2023 is 58.0. It shows notable stability and low risks for investors. Low risk equals a safe environment to make the most out of your savings by using them as an investment.

Market Insights: Where and What to Buy is Important

overlook of buildings next to the seaWhen making an overseas investment, factors such as the location or the property type matter the most. It is always suggested to cooperate with experienced consultants to safeguard your savings and the future of your investment.

In the example of Montenegro, there are a few things to consider when choosing real estate as an investment instrument. Let’s say you look for a property for sale in Montenegro to earn rental income from. For it to be rented out consistently, it must be in a highly attractive city such as Budva. It also must be positioned in a desirable location. The proximity of the property to city attractions and transportation bears great significance. Being within walking distance of the sea, and picturesque views of the Adriatic will be a plus.

If the property is in a residential complex, the complex’s extent is also another consideration factor. Each facility and service will add value to your property, such as 24/7 security, and communal areas like a swimming pool or private beach. The interior conditions of the property must be decent and modern. The equipment must be up-to-date, maybe including high-tech details to provide comfort to your tenants.

All of these factors will play a crucial role in the rental income you will receive from your investment. Not only that, these factors will also have a huge impact on your property’s value gain over time. For a smart investment, newly built real estate projects in prime locations in tourist cities such as Budva are highly suggested.

In addition, off-plan properties could be a great option in the long haul. Since they will be introduced on the market with the launch prices, they will be more affordable. Plus, as time passes by, in each construction stage the properties will gain remarkable values. The sales prices will reach their peak right after the construction has ended. It might be a quite lucrative investment strategy to buy earlier and enjoy it later.

Choosing the right project that aligns with your purposes is important while making a real estate investment abroad.

Introducing: Riviera Hotel & Residences Project

If you are considering buying property in Montenegro to get residency, this is your cue to invest. Here is a perfect option for embarking upon a new journey through the Adriatic: Riviera Hotel & Residences.

Neighboring the shores of the Adriatic Sea, the Riviera project has a spectacular location in the heart of Budva. With its magnificent location, it offers easy access to the most attractive spots of the city and all amenities. This will be a major factor if you would want to rent it out and obtain regular income.

Plus, the project offers a wide range of social facilities and services. This will also add another plus while considering renting out or buying your second home abroad. These on-site amenities will ease out your living, and increase your lifestyle quality. From a 24/7 concierge to a wellness center, a private beach to rooftop bars, this complex has everything you are looking for.

There is a wide range of property options, with varying bedrooms and features. This plethora of properties offers suitable options for every budget. Each unit in the project is specially designed to offer effortless living at the highest standards.

The project offers a remarkable investment opportunity with its flexibility in usage and affordable launch prices. The TEKCE team is ready to discuss further details about your investment plan. Our professionals will make sure your investment strategy is thoroughly planned and pursued. Contact our agents today to learn more about real estate investment in Montenegro.


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