In today’s world, one of the safest investments is buying real estate, especially when it comes to buying a house or an apartment by the sea. Over the past few years, Montenegro and Greece have become very popular with investors thanks to the excellent climate, constant flow of tourists, and growing economy which make these countries a reliable bastion for profitable investment and saving your own money. We are speaking about all the nuances of buying property in Greece and Montenegro in a large interview with Arthur Brazilevsky, the CEO of Homium International Real Estate Agency.

Buying foreign real estate always requires knowledge of the smallest nuances of the real estate market of a country. That is why we asked for advice from an expert on the global real estate market Arthur Brazilevsky, the CEO of Homium International Real Estate Agency. 

Homium is a group of companies specializing in the sale of overseas real estate for Ukrainians and worldwide. For many years Homium real estate agency has been a reliable guide for buyers and sellers in the global real estate market. The company also provides a full range of services for property management after the purchase.

Montenegrin real estate market: trends and predictions

Montenegro is a Balkan country with a good climate and unique nature, which is famous for its beaches in the bays of the Adriatic Sea and picturesque nature reserves in the shadow of the rocky mountains. The country is rich with ancient villages, architectural monuments, and national parks. Hundreds of thousands of tourists come to this country every year, some of them to enjoy a beach holiday, and others to see the glacial lakes with their own eyes or to hike along the picturesque hiking trails. 

Montenegro’s real estate market has been showing steady growth for more than 5 years. Improving the economic climate in the country, GDP growth, and the improvement of the local population’s well-being have led to the fact that domestic demand in the real estate market began to grow. Since 2017, prices for apartments and houses in the most popular cities of the country such as Budva, Kotor, and Bar have been growing at an average of 7% per year.

Another important factor was the development of infrastructure and the increase in the number of new housing. Part of the proposals on the primary market was formed by legalized properties, which became possible after the approval of the corresponding legal framework. The new building market in terms of the quality of supply reached the European level, and all this attracted foreign investors’ attention. According to statistics from the country’s Central Bank, in 2022, the number of foreign investments in Montenegro increased by 70% (up to €599 million). At the same time, investment in real estate in Montenegro has grown to €322,2 million.

As a result, high demand has provoked an increase in real estate prices, and, according to Artur Brasilevsky, in the near future, we may see an even steeper rise.

— According to many international rankings Montenegro is one of the leading countries in terms of investment in real estate. And it is not surprising, because the country is planning to join the European Union in the next few years. This is likely to provoke a rise in property prices. The same situation we have seen in Croatia where the cost of real estate rose by 2 times. 

Also, keep in mind that the number of tourists visiting the country is growing every year. According to the latest figures, in 2022, the number of tourists wishing to spend their holidays in this sunny country has increased by 15%. The Montenegrin destination is especially popular among tourists from Germany, France, Belgium, Egypt, and Israel. In this case, with the emergence of IT specialists and employees of international companies working remotely, the concept of «seasonality» here is gradually disappearing. Reasonable prices for food and the environment attract people to Montenegro all year round and in 2023, this trend will go on.

coastal houses in Budva, Montenegro

Montenegro, Budva

We should not forget about the five-year moratorium on the construction of real estate in the Budva Riviera — the most popular location in the country. This has led to a shortage of new buildings and created a rush demand for the purchase of real estate from developers in the region. What is interesting, the increase in property prices in Budva Riviera has led to inertial growth in other regions of Montenegro.

Of course, the real estate market has reacted sensitively to the situation in Ukraine, where people were forced to leave in search of safety. Part of them went right to Montenegro, thereby increasing the demand for both real estate rental and purchase.

All this has caused an increase in demand in the rental housing market, making the return on investment in real estate even more attractive. The greatest demand among investors, of course, is inexpensive real estate in coastal areas, most often it is purchased for rental purposes. To buy a one-bedroom apartment in Budva or Kotor, for example, you should count on at least €90,000. The average cost of daily rent of the apartment in the «season» time can bring up to € 1,500 per month, and in the off-season period, it can be rented for €400 per month. If we take into account long-term rentals, the return on investment (ROI) will be 7.2-8.4% in large cities.

«The cost of investment-attractive properties starts at about €70,000»

— What is the minimum threshold to enter the real estate market in Montenegro?

— The cost of investment-attractive properties starts at about €70,000. I recommend buying real estate in major cities. In small towns you can, of course, find cheaper options, but such savings will not lead to anything good. Mainly because the local infrastructure does not allow for winter living, which means that it will be impossible to get income from real estate in the «off-season» period.

— What does a foreigner need to know in order to buy an apartment or a house in Montenegro? Are there any special conditions?

— Real estate in Montenegro can be bought for your personal use or to rent it out which is profitable in either case. In this case, there are no special conditions. For example, Ukrainians, in order to buy property in Montenegro, need only the basic package of documents and a reliable agency, which will check all the documents and carry out the deal «turnkey». The ideal scenario is that the buyer, of course, should be present in the country at the time of the transaction. However, even if this is not possible, we can conduct the transaction remotely as there is an established mechanism for that. 

Another important nuance is that the purchase of a real estate in Montenegro gives the right to obtain a residence permit. Now it is especially important.

When addressing the real estate agency «MonteHome», which is part of a group of companies Homium, there are no additional conditions for a buyer wishing to buy property in Montenegro. In this case, the commission for buyers is 0%. The company also provides post-sale property management services.

View of houses in Athens, Greece

Greece, Athens

Greek real estate market: trends and predictions

Another very promising country in terms of real estate investments in 2023 is Greece. 

Greece is located on the Balkan Peninsula and includes hundreds of islands in the Aegean and Ionian Seas. It is a country with a rich history, which has its origins in the famous Ancient Greece where Western civilization began. The excellent climate and scenic nature made Greece one of the most popular countries for tourists who come here all year round. The revenues from tourism represent about 20% of Greece’s GDP.

After a crisis that lasted until 2017, the country’s economy has finally begun to recover and show steady growth. According to the Central Bank of Greece, GDP grew by 7.8 percent in 2022, one of the highest growth rates in the European Union. According to the European Union’s economic forecast, Greece’s GDP will grow about 1-2% per year from 2023 to 2024. Inflation is expected to fall in the next few years, while local incomes will grow. This will lead to an improvement in the real estate market, among other things.

— The growth of property prices in Greece began back in 2017, but the high level of inflation actually «ate» part of this difference, and, taking this into account, the real estate market was in a state of stagnation«, says Artur Brasilevsky. — The low level of income and high-interest rates on loans were the main reasons for the fall in domestic demand. As a result, the cost of real estate during the crisis fell by almost 23%.

However, 2021 managed to radically reverse the situation: the fight against inflation, and the increase in real incomes managed to stabilize the domestic real estate market. The fact that since 2022 secluded resort real estate became incredibly popular among buyers also played its role. As a consequence, real estate prices began to rise — about 8-10% per year. Of course, foreign investors have immediately stepped up. According to official statistics, the amount of foreign investment in the country in 2022 increased by about 19%, and the share of foreign investors — up to 60%. According to the Central Bank of Greece for the first nine months of 2022, the volume of foreign investment in real estate amounted to € 1.27 billion, which is 60% more than a year ago. In total, in 2022, foreigners bought real estate in Greece for a total of about € 1.5 billion which is more than impressive. 

According to official statistics, in 2022 real estate prices rose by an average of 9.4%. However, if we take into account only the resort cities, the growth will be much more significant. The cost of a square meter of housing in major cities was on average € 1,800 — € 2,200. Now you can buy an apartment in Athens for € 2,400 per square meter, in Thessaloniki — from € 1,600 per square meter, and on the islands — from € 2,200 per square meter. These are approximate prices, and you should understand that much depends on the apartment or house and its location. However, in my experience, it is still possible to buy a profitable property in Greece. You only have to contact an experienced real estate agency, which is well-versed in the real estate market.

«In the past year, Greece has become one of the most prosperous countries in terms of income from investment real estate»

— What is the minimum threshold to enter the real estate market in Greece?

— I would distinguish several strategies of investment behavior in the real estate market in Greece. The first option is the purchase of investment resort property in order to subsequently rent it out to tourists. Such apartments are priced from €70,000.

The second option is buying property in major cities (Athens, Soloniki) for long-term rental purposes. These apartments are, as a rule, more expensive — from € 100,000 for 1 +1 apartments.

The third option is real estate for students. Investors choose to buy entire residential complexes or dormitories to rent accommodation to students. The only condition here is the location near universities in major cities. In this segment, the income can reach up to 10% per annum. At the same time, the most inexpensive student apartment for investment costs € 50,000.

For major investors, tourist-type commercial real estate would be appropriate. The price of such properties starts from €500,000. These may be mini-hotels, hotels, apartment buildings, and street retail. In this case, the most profitable option is buying properties for reconstruction: old apartment buildings, abandoned factories, or plants. 

By the way, the buyer does not have to worry about anything, because the real estate agency GreekHome, which is part of Homium, provides a full range of services for long-term property management.

— How beneficial is buying real estate in Greece for rental purposes?

— In the past year, Greece has become one of the most prosperous countries in terms of income from investment real estate. This is influenced, first of all, by the endless flow of tourists who come to Greece. According to official data, in 2022 the country was visited by several millions of tourists.

The cost of daily rent, as well as in any tourist city, greatly depends on the location of the property and its condition. On average, you can rent a studio apartment for a day in popular Greek cities for about €80. The closer to the sea — the more expensive it is. 

According to official statistics, over the last year, the growth of profitability of real estate rentals in tourist cities of Greece (such as Athens, Soloniki, Haldiki, or Crete) was about 50%. As a result, an apartment worth €100,000 can bring a profit of up to €10,000 per year.

— What does a foreigner need to know in order to buy an apartment or a house in Greece? Are there any special conditions?

— In order to buy real estate in Greece, foreign investors do not need to meet any special conditions — only the basic package of documents and the required amount of investment capital. The only peculiarity: the money to the seller’s account must be transferred from the account issued to the buyer. At the same time, Greek banks do not currently check the source of funds of non-residents. However, in my opinion, the situation in this matter may change soon. 

Do not forget that the purchase of a real estate for a certain amount (more than € 250,000 in small towns and over € 400,000 in large cities) may be the basis for obtaining a residence permit in this country. This is a very important factor for most investors. 

I would like to recall that the group of companies GreekHome is a reliable assistant to property for sale in Greece.