According to the Central Bank of the Russian Federation, in the second quarter of 2014 compared to the second quarter of 2013, the volume of transactions for the purchase of foreign real estate decreased by 11.2 % – from $526 million to $473 million. Compared to the previous quarter, investments decreased by 2.3 % ($484 million). Until 2013, Russian investments abroad did not stop growing. This year there was a decline for the first time. The main reasons are the tension of the situation between Russia and the West.

Montenegro, which once attracted thousands of Russian buyers to its shores, has experienced a crisis, but there is no tangible growth in prices for immovable after the crisis. This is a signal for the investor – to look closely at the local residential facilities. In coastal regions, the prices for apartments in new economy class are €1.2-1.6,000 for sq. m.

According to the company “Medservice Group”, Adriatic coast, especially near the city of Budva is the most popular among Russian buyers. Also, due to the good environmental conditions, the facilities in the Bay of Kotor are attractive as the price is slightly lower than in Budva. The city of Bar where they go not only to relax, but also to work, do business, make purchases is in demand. Apartments in the Bar are more popular and cheaper.

Ulcinj is less successful: although it is in the South (with the best beaches) the majority of the population is Albanian, and the language and the religious barrier has a negative impact on demand. Accordingly, prices in the South of the country are lower.

Recently, there has been an increased interest to immovable in the mountains. The only obstacle is the state of communications and infrastructure, which leaves much to be desired. According to the experts, over time, when this problem is eliminated, the demand for real estate in mountainous areas may grow.

In Herceg Novi, a new apartment of 25 sq. m, located 700 meters from the beach, with a beautiful panoramic view of the Bay is sold for €33,000. More spacious stone house with an area of 110 sq.m. on the first line in Kotor, is estimated to have €210,000. Cozy private Villa with a total area of 300 square meters with a green garden, in a quiet area of Budva, within only 200 meters from the waterfront, will cost its new owner €450,000.

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