The average price of a new apartment in Montenegro went down by 11.3% y/y in the third quarter of 2020, after decreasing by 21.9% y/y in the previous three months, statistics office data showed on February 22.
The figures showed a recovery in the fourth quarter of the year, as compared to the previous three months, apartment prices increased 15% in 4Q20.
The average price of a new dwelling was €1,007 per sqm for the whole country and €985 per sqm for the capital Podgorica. The highest average price was in the coastal region at €1,359 per sqm.
The lowest prices of new apartments was registered in the central region of Montenegro, €635 per sqm.
The total price of apartments includes the costs of construction, as well as of acquiring the land, construction works and other costs.
Montenegro is expected to report the worst GDP contraction in the emerging Europe region in 2020 as the tiny country’s economy is heavily dependent on tourism. It has reported one of the highest number of infections per capita in the region after a severe second wave that started in mid-2020. The tourist arrivals shrank 79.2% y/y during the year, while overnight stays collapsed by 79.8% y/y.