Overseas Property Where Are They Now Part I Montenegro
News Posted On: 09 April 2012
During the overseas property boom, Montenegro was one of the country's to really fly off a launch pad. That launch pad was built up by its declaration of independence from war-torn Serbia in 2006. Montenegro was set free from Serbia's history and allowed to flourish on its own merit, which highlighted the tourism destination it once was, attracting film stars and even princess Diana there on holiday.
It kind of fell off the map when the crisis struck, but more because of the general black out on covering such young emerging markets as places to buy property, than as a result of the effect the crisis actually had on Montenegro itself.
Not that it was completely unscathed. However Montenegro has lengthy planning laws, so most developers were not left with started developments they could no longer finish, but land banks that they had planned to build on. This would leave Montenegro in a strong position for recovery.
And recover it has since 2009. You may question this because you haven't heard about it till now, but this only shows that the coverage of such destinations has not recovered. Meanwhile, in the background a steady flow of buyers began to realise that Montenegro property, which was never cheap and mass marketed to speculators, had not lost its value, making it a safe place to buy.
As we all know, post-crash overseas property has been dominated by safety. The world's wealthy watched their cash being devalued by inflation and volatility in foreign exchange rates, and quickly sought to store their wealth into assets capable of holding their value. Montenegro became one of the countries where the wealthy invested in as a hedge against the financial volatility.
Russian buyers have been reportedly dominant in Montengro over the last 2-3 years, but that is a common story across Europe. Development in Montenegro resumed at a slow pace in 2010, but Montenegro is one of the smallest countries in the world, so a slow pace by normal standards is ticking along nicely for Montenegro.
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Written by Liam Bailey
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