| POLITICAL STRUCTURE
Capital: Podgoritsa
Form of Government:
Administrative divisions: 35 regions, 21 municipality
Executive Branch: Council of Ministers
President: Filip Vujanovic, term of 5 years in office
Last President Elections: 22 March 2003
Prime-minister: Zeljko Sturanovic
Legislative Branch: 81 deputies, four-year term
Last Parliamentary Elections: 10 September 2006
Participation in Organizations:
• UN from 05.06.2006
• NATO’s Partnership for Peace from 30.08.2006; Full NATO Membership -expected 2010
• Council of Europe-application date- 6 June 2006 -request transmitted to Parliamentary Assembly - expected June 2007;
• Full European Union Membership-expected 2012 – 2015
GEOGRAPHY
Territory: 13,812 sq.km- 5,019 sq.miles
Neighbor countries (length of the boundaries- 625 km (total):
With Croatia: 14 km; With Bosnia and Herzegovina: 225 km
With Serbia: 203 km
With Albania: 172 km:
Natural Resources: bauxite, hydroelectricity
84,736 (July 2007 est.) 84,736 (July 2007 est.)
Ethnic Groups: Montenegrin(43.16%)
Serbs:(31.99%); Bosniaks:(7.77%)
Albanians:((5.3%)
Muslems:(3.97%)
Population rate: -1% (2007 est.)
Official languages: Serbian(ljekavian dialect), Bosnian, Albanian, Croatian
Religion: Orthodox, Muslim, Roman Catholic
Time zone: CET(UTC+1)
Summer (DST) CEST(UTC+2)
Currency: Euro
Major cities:
Podgorica (capital; 136,473 inhabitants)
Nikšić (58,212)
Pljevlja (21,377)
Bijelo Polje (15,883)
Herceg Novi (16,493, including Igalo)
Berane (11,776)
Railways: total 250 km
Roadways: total 7,353 km
Airports: Podgorica and Tivat.
Ports: Town of Bar
MACRO ECONOMICAL INDICATORS
The republic of Montenegro severed its economy from federal control and from Serbia during the MILOSEVIC era and maintained its own central bank, used the euro instead of the Yugoslav dinar as official currency, collected customs tariffs, and managed its own budget. The dissolution of the loose political union between Serbia and Montenegro in 2006 led to separate membership in several international financial institutions, such as the European Bank for Reconstruction and Development. On 18 January 2007, Montenegro joined the World Bank and IMF. Montenegro is pursuing its own membership in the World Trade Organization as well as negotiating a Stabilization and Association agreement with the European Union in anticipation of eventual membership. Severe unemployment remains a key political and economic problem for this entire region. Montenegro has privatized its large aluminum complex - the dominant industry - as well as most of its financial sector, and has begun to attract foreign direct investment in the tourism sector.
GDP (purchasing power parity): $ 3.394 billion (2006 (Source: CIA [1]) est.)
GDP (official exchange rate): $2.27 billion (2006 est.) ([2]) est.)
GDP - per capita (PPP): $3,800 (2005 est.) ([3]) est.)
Labor force: 259,100 (2004) ([4])
Labor force - by occupation:
o Agriculture: 2%
o Industry: 30%
o Services: 68% (2004) ([5])
Unemployment rate: 27.7% (2005)[6]; 16,14% (July 2006)[7] [1]
Population below poverty line: 12.2% (2003)
Inflation rate (consumer prices): 3.4% (2004)
Electricity - production: 2.864 billion kWh (2005 est.) ([8])
Exports: $171.3 million (2003) ([9])
o Exports - partners: Switzerland 83.9%, Italy 6.1%, Bosnia and Herzegovina 1.3% (2003) [2]([10])
Imports: $601.7 million (2003) ([11])
o Imports - partners: Greece 10.2%, Italy 10.2%, Germany 9.6%, Bosnia and Herzegovina 9.2% (2003) ([12])
Currency (code): Euro (EUR)[3]
Agriculture - products: grains, tobacco, potatoes, citrus fruits, olives, grapes; sheepherding; commercial fishing negligible
Industries: steelmaking, aluminum, agricultural processing, consumer goods, tourism
Exchange rates: euros per US dollar - 0.7964 (2006), 0.8041 (2005), 0.8089 (2004), 0.886 (2003), 1.0626
Telephones - main lines in use: 177,663 (2005)
Telephones - mobile cellular: 543,220 (2005)
Internet users: 50,000 (2004)
Montenegro: Market and regulations
The nature is the only real asset Montenegro has to offer in order to attract investments, especially foreign. With Croatian coast increasingly turning into a chain of construction sites people looking for peace and quiet are gradually turning their attention to its immediate southern neighbor and now independent country Montenegro. The prime locations along the seacoast that just 2-3 years ago were sold out at less than 1,000 Euro per sq.meter residential space now tend to reach 3,000 Euro per sq.meter. The demand, especially from small foreign investors, has risen recently several times. Most newcomers come from the British Islands and Russia.
The invasion of money big enough for the local economy to swallow may however turn Montenegro into smaller version of Croatia, which may not seem like a big threat in short-term given the financial bonanza falling over the northern neighbors. In fact however this development is considered among local specialists to be highly unsustainable and thus threatening, example being the falling prices and fleeing tourists from countries like Bulgaria because of the over-construction zeal in several key locations. As far as Montenegro is still more or less a pristine destination it still can attract few but affluent new residents. Once they become too many Montenegro will turn into yet another ordinary destination with all negative consequences on the local infrastructure and ecology.
To make this damaging scenario more unlikely than not the local government has already started introducing a package of new construction regulations. No new housing projects will be allowed to be built if they surpass 4 floors, and no new permit will be granted if the constructions don't respect the predominant local architectural style. The buffer zone of 30 meters along the coast where no construction is allowed without special permits may be deepened to up to 100 meters from the coast. Many illegal buildings along the coast may be demolished at owners' costs.
Lower prices compared to neighbouring Croatia and Montenegro's natural beauty and geographic position, one hour’s flight from Rome, have brought foreign buyers flocking.
The government has said it will consider raising the current 2-per-cent sales tax on property transactions but does not plan substantial increases, as it does not want to deter buyers.
The real estate market could not be channelled and restricted quite.
The finance ministry data show the income from property sales in 2006 have quadrupled in comparison to 2004, amounting to a total of about 750 million euro.
This is reflected in a sharp rise in government revenue from property taxes, from 3.84 million euro in 2004 and 5.14 million in 2005 to 14.64 million in 2006.
There have long been suspicions that foreign buyers, especially Russians, are laundering money through the purchase of properties in Montenegro.
The uncontrolled expansion of the market was damaging the environment and putting pressure on the infrastructure.
Land prices
The real estate market in Montenegro remains buoyant. Current prices per square metre for land on the coast range from 50 to 200 euro, depending on location, while prices per square metre for apartments and houses range from 1,500 to 3.000 euro. Moreover, agencies estimate prices will continue to rise due to continuing huge demand. Agricultural land is being quickly converted to illegal settlements without any plans concerning its sustainable use and maintenance. It would be difficult to impose solutions that did not inhibit investors. Montenegro might to well to follow in the footsteps of the UK, where foreigners are encouraged to buy homes on 99-year leases rather than buying the land outright.
As the things stand now Montenegro may become a land owned by foreigners. This is why we should be thought about offering land to [foreign] buyers for 99-year leases, as the Brits have done.
The sell off
If you are Serb and have real estate in the tiny Yugoslav republic of Montenegro, you may be planning to sell your property as soon as possible and to take your money far away.Many Serbs simply sell their homes which reduces prices on the local real estate market. In the Adriatic sea cosy coast villages. where only 2-3 years ago houses cost $500-600 USD/sq.meter (1 sq.meter=10 sq.feet) prices are now $200-250 USD/sq.meter. Even in the most luxurious residential areas, until recently occupied mainly by political, economic and military elite of the federation, prices went below $500 USD/sq.meter.
The sell off began immediately after Montenegro decided last year to introduce the German Mark as a parallel national currency.
During the former Yugoslavia the Serbs, which by far were the most numerous nation in the former federation, built their vacation properties on the Adriatic sea coast in Slovenia, Croatia and Montenegro, because Serbia lacks a seacoast.
For their part, officials in Montenegro deny any suggestion that they plan the nationalize Serb held properties in the republic. We are trying to build a state of the law country where the rights of the individuals, both local and foreign, will be equally protected, said most of them if asked to comment on the Serb sell off.
What makes Montenegro real estate for sale an attractive real estate investment opportunity?
It's been noticed that recently the opportunity of real estate investment into real estate for sale has increased dramatically. Today the amount of transactions with real estate sale and purchase on Montenegrin coast has a steady growth trend. What exactly makes real estate for sale on Montenegrin Adriatic coast an unsurpassed investment opportunity?
Below are some of the main advantages of this part of the Adriatic coast, and, therefore, weighty arguments for real estate sale and purchase in Montenegro.
• You will have the opportunity of real estate investment in the cleanest part of the Adriatic, which has not been spoiled by civilization yet. Neither giant hotels and noisy restaurants nor other real estate for sale objects overcrowd the coastline. The sea itself is much cleaner on the eastern Adriatic coast than on the western one. That is why Italians prefer beaches of Montenegro when going on holidays;
• Remarkably mild climate all year round is attractive for tourists, which is also important for real estate investment opportunity. The coast is planted with palm trees, cypress and olive groves, cedars and pomegranates. You can see cottages, apartments, villas and other real estate for sale objects placed comfortably in their shadows.
• Real estate investment opportunity in Montenegro is enhanced by relatively little red tape involved into the registration of real estate for sale and purchase, the whole procedure taking just a couple of days.
• Private property right protection having deep historical roots (land here has always remained private property and never been expropriated) affords attractive real estate investment opportunity, too.
• Favorable, if compared to Spain, France, Italy, Greece or Cyprus, taxation for owners of real estate and really low utility payments provide real estate investment opportunity for international investors.
• Real estate sale prices, construction and finishing works in Montenegro are much lower than any other European country - the fact, which is the most important while talking about real estate investment opportunities.
• Finally, the constant increase of prices for real estate for sale makes any acquisition of the real estate an eligible investment opportunity. A villa, an apartment, a house, a cottage and, in fact, any kind of real estate for sale on Adriatic seaside, if rented, can bring in a steady income to you.
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