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Viewing cable 07PODGORICA214, FOREIGN PURCHASE OF REAL ESTATE IN MONTENEGRO (C-RE7-00522)

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Reference ID Created Released Classification Origin
07PODGORICA214 2007-06-15 13:11 2011-08-30 01:44 UNCLASSIFIED Embassy Podgorica
VZCZCXRO6566
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHPOD #0214 1661311
ZNR UUUUU ZZH
R 151311Z JUN 07
FM AMEMBASSY PODGORICA
TO RUEHC/SECSTATE WASHDC 0289
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RUEHPOD/AMEMBASSY PODGORICA 0309
UNCLAS PODGORICA 000214 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EINV MW
SUBJECT: FOREIGN PURCHASE OF REAL ESTATE IN MONTENEGRO (C-RE7-00522) 
 
 
1. (U) Summary: Foreigners, mainly Serbs, own 1.39% of all land, 
and 8.5% of all condominiums, in Montenegro. Among foreigners, 
Russians are second in condo ownership, but fourth in land 
ownership. Current law in Montenegro allows foreigners to buy 
realty with few restrictions. End summary. 
 
 
 
2. (U) The Directorate for Real Estate within the Ministry of 
Finance has reported on the amount of land and number of 
condominiums owned by foreigners in Montenegro.  Foreigners own 
a total of 19,210 hectares of land in Montenegro, or 1.393% of 
the total.  They own condominiums aggregating in total 1,529,000 
square meters, or 8.499% of the total in Montenegro. Over 90% of 
the property is owned by "natural" as opposed to "legal" 
persons, i.e., by humans, not companies. 
 
 
 
3. (U) Top five countries by ownership are: 
 
 
 
Land 
 
.                      % of foreign land    % of Montenegro 
 
Serbia       15,936 ha   85.02%                 1.156% 
 
Bosnia        1,721 ha    9.58%                 0.125% 
 
Croatia         533 ha    2.96%                 0.039% 
 
Russia          292 ha    1.52%                 0.021% 
 
Slovenia        259 ha    1.21%                 0.019% 
 
 
 
Condominiums 
 
.                        % of foreign       % of Montenegro 
 
Serbia      1,100,746 m2   73.99%               6.12% 
 
Russia        131,621 m2    9.11%               0.73% 
 
Bosnia         98,907 m2    7.00%               0.55% 
 
UK             52,328 m2    2.58%               0.29% 
 
Slovenia       48,969 m2    1.56%               0.27% 
 
 
 
The number of actual owners is unavailable. Montenegrin 
dwellings advertised to foreign buyers tend to be larger than 
average, around 120 to 200 m2 (and up). Additionally, property 
acquired by foreigners through privatization of state-owned 
firms (e.g., KAP) is not included in the Directorate's current 
report.  The Directorate told post June 14 that they are 
revising and expanding their data collection, and will finish an 
update later this summer. 
 
 
 
4. (U) Comment: Generally, foreigners can acquire real estate on 
reciprocal terms; i.e., on the same legal basis for Montenegrins 
seeking to acquire realty in a given foreign state.  Some 
Montenegrins have advocated restricting the ability of 
foreigners to buy real estate in Montenegro, often in response 
to the latest media story of "Foreigners (often "Russians") 
buying up all of Montenegro."  The data does not indicate who is 
currently buying land.  Presumably, many of the Serbs and other 
regional owners have had their Montenegrin properties for some 
time. 
 
BARNES