Real estate Podgorica – Current situation on the market 19.03.2022
Today, we are witnessing the turbulent movement of real estate prices in the last 7 months. Prices are rising and building an upward trend that is unknown for how long it can last. The growth of real estate prices in Podgorica is led by apartments in new construction, which are growing at a breakneck speed, and there are many reasons for this, some of which we will elaborate on in the next reading. Apartments and houses in old buildings also follow an upward trend, but much more slowly compared to apartments in new buildings.
Real estate market in the area
If we look at the environment, a similar situation is happening, with the fact that real estate in Sbrija started growing earlier and there is a real explosion of construction happening there, unlike our market. The growth of the real estate market in Serbia in 2021 compared to 2020 is over 20%. The fourth quarter of 2021 in our market compared to 2020 is lower by 8.9% as far as building permits are concerned, which indicates a reduction in construction, but this very fact contributed to the increase in real estate prices .
Post corona period
The post-corona period we are living in brings us inflation with no end in sight. The latest events in Ukraine are also disrupting the recovery of the economy, which further complicates the situation. The prices of building materials have increased by over 30%, which of course affects the prices of new buildings, so some investors have already raised prices a couple of times during construction.
What further raises prices is certainly uncertainty , the expectation of price growth, which has a more speculative character than a realistic one. There is an obvious disproportion between demand and supply , which opens up space for rapid price fluctuations. This leads to a real danger of skyrocketing prices and the final collapse of the market in the form of a bursting bubble and a depression that would occur afterwards just like in 2008.
The current state of prices on the Podgorica market
Apartments for sale Podgorica – New construction
Prices in new buildings range from €1,100 to €3,500. The visual difference is obvious. You can find the lowest price with some investors in new buildings in the area of Zagorič, followed by Stari Aerodrom €1200 and up, Tuški put a similar situation, Zabjelo already at €1300, City quarter , Central Point , Master quarter as well as Ljubović Hills, completed buildings are already over 1600€/m2. up to €1900. New buildings near Tološka šuma are already under construction €1,700/m2. City key also follows the increase in prices on the market, so there are apartments for €1,500 and up.
Old construction – Apartments for sale in Podgorica
In old construction, the situation is quite different, some locations have grown while some remain at the same level as before due to the great interest in new construction. You can find apartments in old buildings from €850 and up, of course apartments that are completely renovated. Apartments in older buildings around Gintaš are around €900-1000/m2, Stari Aerodrom is a similar situation, across Morača they have risen to €1100-1200/m2 for non-renovated apartments, mostly when it comes to old buildings, it depends a lot on the building itself and the investor has worked, does he have all the necessary permits, etc.
House for sale in Podgorica
As for houses, there is demand, but it is much lower than for apartments. Houses that are new and modern are especially sought after, especially one-story houses with a nice yard and driveway. Location plays a big role. With older houses, the situation is much more difficult, mainly because most of them are for renovation and do not have all the necessary permits.
Sale of land in Podgorica
Here, the situation is such that there is a demand, but for lots that are for multi-story buildings or for smaller residential buildings for family housing, but with permits. The situation is disturbed by urban chaos where many locations have not yet been urbanized through detailed urban plans.
Conclusion
The market is moving forward and upward, but most of the demand is for cheaper apartments and buildings. Many buyers would also opt for houses, but expensive salaries and the lack of urban plans, construction workers, the jump in the price of building materials, the lack of bank support for this segment, leads to very little interest in building houses.
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