Real Estate and Coronavirus / Covid 19
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Suddenly the whole business and world were pulled to a stop by coronavirus. Many are wondering what is the current situation in Montenegro regarding real estate and how to behave.
What is the situation now in Montenegro?
SALE – Currently the prices are dropping due to low demand and movement restrictions. In Montenegro that trend already started and it will continue at least during the lockdown. People who have savings will try to buy properties at lower prices now. A number of properties is not available for presentations as the owners are either unable or unwilling to show their properties. Prices went down by thousands at this point. Not all properties have lower prices, though. The prices are conditioned by the owner’s view of this situation also. Those who percieve that it is better to sell as soon as possible or need money will be willing to lower the prices. Those who think this will last for a short time will keep their prices high for some other times.
RENT – Some tenants left, some stayed. The prices went down as there are no foreigners coming to Montenegro. There are foreigners who want to move to another apartment or who came just before the lockdown. Some tenants ask for a discount from their Landlords during these times as their earnings are lower. Not all Landlords agree to this, but some do. Some Landlords are afraid of loosing their incomes from renting and because of that are willing to agree to any demand. Many clients, wether owners or those who want to buy and rent, are terrified of this situation and do not want to go to presentations.
When it comes to people from Montenegro, there is a small number of Montenegrins renting apartments. Many of them choose to just ask about properties in order to be updated on the situation, but reserve renting for times after this lockdown. Their budgets are usually lower.
AGENCIES – Real Estate agencies are still trying to work. Some offer lower costs for their services, usually for half of the standard price (which is equal to one monthly rent for renting and 2% or 3% for sales).
What can be done now?
SALE – If you are a buyer. now there is a window of opportunity to find properties at a good price if you have money. Be sure to follow adverts and ask real estate agencies to let you know if there are good properties that dropped in price.
If you own a property for sale, maybe you want to wait for the right buyer before dropping down the price if you don’t need money right now. We do expect demand to get back after some period. Consider renting until you find a buyer.
RENT – If you are looking for an apartment to rent, now is a good time. More offer is available and you can more easily negotiate prices and conditions.
If you are a tenant, make sure you have your situation under control. Is your income stable? Is your job stable? Try to have savings for at least one more rent in case things go wrong. If your situation is worse due to the crisis, try asking your landlord to drop the price down until things start getting better. We do not advise to ask for a drop in price if there is no need for that as it can have negative effects on you and those who really need to cut their expances. If you are in need and your apartment is expensive and your landlord will not lower the price, do not be afraid to cancel your apartment and find another one. In this situation you can find many options at good price.
If you own an apartment for rent, try helping your tenants. Also beware of being tricked into lowering the price to the tenant too much or if they are in no need. Most landlords didn’t lower the prices more than 1/4 or 1/3 of the price. It is unknown how long this situation will last and there were some tenants who asked to pay nothing during this period. Please do not allow this.
We recommend that you inform yourself about the situation by reading, asking real estate agencies and asking people you know about their situation. It is hard to predict trends in near future. Be sure not to make quick decidions. Making a plan can be a good start.
If you need more information, contact Dandelion Real Estate.