Demographic changes and the real estate market in Montenegro

In our previous blog How global events affect the real estate market in Montenegro, we briefly touched on the impact of various international developments on the domestic real estate market. Now, we will place greater focus on demographic changes and their impact.
Various demographic factors, such as migration, youth emigration, and changes in lifestyle, are causing demand for apartments in certain parts of Montenegro to grow faster than supply. As a result, these demographic trends are increasingly influencing property prices and shaping where and how construction and purchasing are most active today.
What demographic changes are, why they matter, and what impact they have on the real estate market in Montenegro, you can find out in the rest of this text.

What are demographic changes and why are they important for the real estate market in Montenegro

The science that studies population, its structure, evolution, movement, and general characteristics is called demography. Demographic changes in Montenegro, particularly the migration of the population from the north to the central and southern regions due to employment, education, and similar reasons, are changing housing patterns and demand for real estate. Additionally, during and after the pandemic, there were changes in work patterns, with remote work becoming increasingly common. This has led to changes in real estate demand, as interest is growing in more flexible living spaces that offer better quality of life, workspace, and long-term value.
That is precisely why understanding these trends helps explain why demand and property prices are not developing at the same pace across all cities and regions.

The impact of demographic trends on apartment demand and prices

According to the 2023 census results, the population of Montenegro increased by 0.6% compared to the 2011 census, while during the same period the number of housing units increased by 25%. The imbalance between the number of residents and the housing stock clearly shows that real estate in Montenegro is no longer driven exclusively by the needs of the domestic population. Investment and seasonal properties, especially in coastal and urban regions, are driving prices up and making housing less accessible to local buyers. At the same time, depopulation of the northern part of the country and the overcrowding of Podgorica, which according to the latest census has a population of 179,505, further deepen regional disparities in the real estate market.

These trends show that for the sustainable development of the real estate market, better coordination between demographic and housing policies is necessary in order to meet the real needs of the population and reduce economic inequalities between regions.
It is clear that real estate in Montenegro is becoming increasingly complex. If you are considering buying, selling, or renting, it would be advisable to consult experts who are familiar with the local market. Our team is at your disposal for detailed market analysis and advisory services. Feel free to contact us for more information.