Real estate prices expected to decrease further
16.03.2009
Further decrease in real estate prices could be expected in Montenegro, but after their stabilization, the sale of properties will resume, a consultancy firm Colliers International has estimated.
“Property has been overvalued, and I expect even lower prices because of the current situation. We believe trade in flats will continue as soon as the prices become stable,” Milovan Novakovic of Colliers told Mina, Montenegrin news agency.
He added that current setback affected the rent level as well, since many people could not afford to buy flats because of a limited availability of loans, which forced them to rent.
“The level of rents will be stable, and it could even go up if this situation continues,” Novakovic said.
He believes that the economic crisis has directly affected the property market, because there are no affordable financial sources, and that market surveys completed six or 12 months ago are no longer valid, as the situation is changing every day.
“However, the real estate market in Montenegro still has a good future as big projects are yet to be realised,” said Novakovic.
Colliers have been moderately affected by the financial crisis, but the company has secured a few valuable contracts since the beginning of this year including property management for the Mall of Montenegro and cooperation with Normal Company and Proinvest, added Novakovic.
Royal Montenegro Grand Resort is the biggest project Colliers is currently involved in acting as the exclusive consultant for the project in co-operation with Colliers Greece.
Royal Montenegro Grand Resort will feature a five-star 220-room hotel and conference centre, a casino, nightclub, yacht club, spa, villas and condominiums, as well as commercial developments including retail outlets, restaurants and cafes. In total the project is divided into four distinct zones and will cover some 66,000sqm on the location in Skocidevojka.
The resort will be constructed 8 km south of Budva and 4 km north of Petrovac, just 1km from Sveti Stefan, at Skocidjevojka, and will open in 2010. It will offer its clients an exclusive lifestyle with the ultimate levels of glamour and sophistication.
The resort is being developed in partnership between Joud Real Estate Funds and Monte-Mena.
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