Europe’s great house price boom continues to strengthen, despite the economic repercussions of the COVID-19 pandemic. House prices have risen in no less than 23 of the 25 European housing markets for which figures were available during the year to Q2 2021. Three of the five strongest housing markets in the latest Q2 2021 global house price index are in Europe, according to Global Property Guide. 

The Montenegro housing market made a surprise comeback, with the price of dwellings in new residential buildings rising by a whopping 20.4% during the year to Q2 2021. This is in sharp contrast to a y-o-y price fall of 16.9% in the previous year. 

Quarter-on-quarter, prices rose slightly by 0.1% in Q2 2021. Demand is rising again, especially from foreign homebuyers, according to the report. In the first half of 2021, foreign direct investment in real estate more than doubled to €91m compared to €44m a year earlier, according to the Central Bank of Montenegro. Montenegro’s economy is expected to grow strongly this year, with a GDP growth forecast of 9% - partially offsetting the 15.2% contraction that it suffered last year.