Montenegro is quite simply stunning and a nature-lover’s paradise. Over half of the Republic consists of mountains and high pasture valleys with over 35 lakes and the World’s largest clean water gorge. The Republic offers 117 sandy beaches, dramatic fjords and ski resorts.
JOINING THE EUROPEAN UNION
Serbia and Montenegro maintain a loose federal union whilst managing their own economic affairs, tax collection and government spending. They also have different currencies (Montenegro uses the Euro). Both republics are working towards joining the EU and NATO in order to build political, social and economic cooperation within Europe. The international community fully supports these aspirations. Serbia and Montenegro joined the Council of Europe in April 2003.
Following the end of the war in Kosovo, the economy of Montenegro grew sharply 6% in 2000 and 2001. The economy grew 4% in 2005. In 2005 Serbia and Montenegro's GDP was US$ 25.46 billion with GDP per capita US$ 2,600.
Montenegro has completed its voucher-based mass privatization program. 50% of the economy has now been privatized. General trading in shares commenced in 2003. Tourism is the primary economic sector.
HOW TO GET THERE
Approximately 2 hours 40 minutes flight time from London to either of the two international airports in Montenegro (Podgorica and Tivat), and one in Croatia (Dubrovnik) which service air travel for the region.
National carrier, Montenegro Airlines, operates scheduled flights to the two international airports Tivat and Podgorica. Montenegro airlines and JAT (Yugoslave Air Transport) manage scheduled flights, while a number of other companies organise flights to Podgorica, Tivat and Dubrovnik during the tourist season. Charter flights are frequent during the tourist season.
Tivat Airport is 4 km away from Tivat, 20 km from Budva and Herceg Novi, 58 km from Bar. Dubrovnik airport is 24 km from Herceg Novi, 44 km from Tivat and 68 km from Budva.
Regular ferries operate to and from Italy‘s Adriatic coast on the following routes: Bar-Bari, Bar-Ancona and Kotor –Bari.
The coastal belt averages temperatures in July from 23 C to 25 C. The summers are usually long and dry, and the winters short and mild. In the mountain regions the climate is a typical sub alpine climate, with cold snowy winters and moderate summers.
The potential for capital appreciation in Montenegro is significant. Property prices are very competitive even to when compared to its neighbours – e.g. 25% less than Croatia. As the Republic moves closer to EU accession we expect property inflation to rise as per other countries – e.g. Greek property prices rose by up to 400% in the 4 years running up to membership.
In addition, tourism and foreign investment demonstrates consistent growth. Accordingly, during the peak holiday season it is currently difficult to find vacant holiday properties. We estimate the annual gross yield of rental properties to be between 7-9%. Click here for our Investment Guide to Montenegro.