At the end of last year and at the beginning of this year, the real estate market in Montenegro entered a phase that economists call “correction”. After several years of price growth, caused by a strong influx of foreigners and a limited supply of apartments, there was a sudden change in the balance.
One of the key factors of that change was the departure of a large number of foreigners, especially Turkish citizens, who in previous years rented apartments en masse in Podgorica and on the coast. Due to political and economic uncertainty, as well as changes in the residence regime, many left Montenegro at the end of last year – leaving behind a large number of empty apartments.
From owner’s market to renter’s market.
Until recently, the owners dictated the conditions. Demand was greater than supply and tenants had to accept high prices, quick decision deadlines and almost no room for negotiation.
Today the situation is completely different.
There are a large number of empty apartments on the market. Supply is greater than demand, which naturally leads to a drop in prices. Tenants now have a choice: they can compare, negotiate and choose better apartments for the same money.
In other words, the market is now on the side of those who rent.
What does this mean for owners?
In these conditions, the owner who insists on the old, high price risks his apartment standing empty for months. Although many believe that they have “nothing to lose” if they wait, the reality is different.
If a two-room apartment used to be worth €700, but today it is worth €550, each month of waiting means €550 lost. After three months, that loss is greater than any “discount” the owner would have accepted if he had acted on time.
Who are the winners in this story?
The winners are the owners who adapt quickly.
Those who understand that the price is not determined by desire, but by the market. Who understand that a slightly lower price with a stable tenant right away is better than an empty apartment with no income.
Such owners:
– have continuous cash flow
– avoid losses due to empty months
– retain reliable tenants
– remain financially stable
On the other hand, those who stick to the old prices often end up with empty apartments and several months of losses, so that in the end they have to lower the price anyway.
Why flexibility wins?
The real estate market is not an emotional thing but a mathematical thing. The price is not what we want, but what someone can and wants to pay today.
Owners who lowered prices did not “spoil the market”, they kept it alive. Thanks to them:
apartments are for rent
people are moving in
money circulates
the market does not freeze
They are the ones who will be the first to profit when the market turns in their favor again.
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