The prices of real estate in Kotor and the surrounding area are growing year by year.
The ban on collective construction, that is, the construction of large residential buildings, and the reduction of lot coverage, as envisaged in the draft spatial-urban plan of Kotor, will undoubtedly lead to a considerable increase of the already high prices of residential space in this town, writes Pobjeda, as reported by cdm.
The recently presented draft specifies that construction zones remain unchanged, but that a reduction of lot coverage and a ban on collective construction are planned, that is, that only the construction of buildings of up to three floors will be allowed.
When asked by the press what he thinks of the real estate market in the territory of the municipality of Kotor and whether the market will be affected by the moratorium and the new planning document, Milos Kukulicic, a real estate broker, says that prices will certainly jump drastically, achieving a multiple stable growth up to as much as EUR 5,000.
The price of a square meter of new residential space in the most attractive and in-demand construction zone Dobrota ranges between 1,800 and 3,700 euros per square meter.
– In the first six months since the coming into effect of the moratorium on construction in Kotor, there have not been any great oscillations in the real estate market when it comes to prices and the offer. However, after that, when a certain number of apartments were sold, for the first time after the real estate sale boom of 2007, the demand exceeded the supply, culminating in the recent period, where the ratio is 10 to 1, especially for single-room and smaller two-room apartments, and the prices have already jumped by 30% to 50% depending on the location. So, after the announcement that the draft spatial-urban plan will stop the construction of all residential buildings in all interesting locations in Kotor, it is likely that the prices of the few remaining unsold apartments will jump to as much as EUR 5,000 per square meter, because the supply will be nowhere near the demand. Considering that Boka Kotorska and Kotor are growing more attractive, it is likely that, due to the UNESCO and the ban on collective construction, , the prices are jumping, achieving a multiple stable growth. Regardless of the type of real estate, wherever the demand far exceeds the supply, the prices will be very high – Kukulicic said.