According to data from the Central Bank of Montenegro (CBCG), citizens’ debt for housing loans amounts to approximately 600 million EUR.
Bankers told the RTCG portal that housing loans experienced growth last year due to rising salaries and somewhat lower interest rates. On the other hand, property prices also reached record highs in the past year.
As reported by the CBCG to RTCG, by the end of November last year, the total debt of citizens to banks had reached a record level of around 1.9 billion EUR, with housing loans accounting for one-third of this amount.
“In the structure of earmarked loans, housing loans dominate, making up 33.5% of the total loans granted to citizens,” the CBCG stated.
Although citizens are heavily in debt, they are not shying away from taking out new loans, especially for purchasing apartments. Leading banks in the market have reported that demand for housing loans remains strong and, in fact, reached record levels last year.
The average salary in November of last year was 993 EUR, with a minimum salary of 600 EUR for high school graduates and 800 EUR for those with a university degree.
Bank offers show that for a loan of 100,000 EUR, with a 20-year repayment period, the monthly installment would be around 700 EUR. For a loan of 60,000 EUR with the same repayment term, the monthly installment would be about 400 EUR. Banks also offer benefits for young singles and couples, including a 25-year repayment period, which reduces the monthly installment amount.
Real estate agencies informed RTCG that with these amounts, one could purchase a one-bedroom apartment or a studio in Podgorica or along the coast.
It is important to note that banks generally allow borrowing up to half of one’s salary, and there is also the possibility of co-signing.
This means that a university graduate with the minimum salary could take out a loan of around 60,000 EUR, which would be enough to purchase a studio apartment in the capital or on the coast.
Erste Bank reported to RTCG that they approved loans exceeding 100 million EUR last year. A total of about 11,000 loans were granted to citizens, with cash loans without mortgages and housing loans being the most popular.
The Director of the Retail Sector at Erste Bank, Relja Đurović, said that there is always great interest in housing loans, and they are among the most sought-after.
“We constantly strive to offer citizens more opportunities to resolve one of their most important life and family issues—buying their own home and getting out of the rental market. Housing loans from Erste Bank experienced expansion this year, thanks to the increase in citizens’ incomes and lower interest rates, along with various other benefits,” Đurović told RTCG.
Compared to 2023, Erste Bank approved 50% more housing loans last year, and the number of housing loans granted increased by about 30%.
“The average value of a housing loan has risen by around 17% compared to last year, now reaching nearly 78,000 EUR,” Đurović clarified.
Crnogorska Komercijalna Banka (CKB) also reported significant interest in housing loans last year.
“Interest in housing loans at our bank was exceptionally high last year. By mid-December 2024, 699 families in Montenegro secured new homes thanks to CKB housing loans. We believe that the great interest from clients was influenced by the variety of our offers, as we provide loans tailored to their needs—different purposes, interest rates in accordance with the repayment period, and special conditions for young people under 30,” CKB representatives stated.
According to data from the Statistical Office of Montenegro (Monstat), the average price of a square meter of newly built property in Podgorica in the third quarter of last year was 1,820 EUR. However, real estate agencies selling properties report that the price per square meter in the capital is generally around 2,000 EUR.
They also noted that citizens’ interest in purchasing apartments remains high, with the average price for a 50-square-meter one-bedroom apartment in Podgorica being around 100,000 EUR.
According to bankers’ calculations, the monthly installment for such a loan would be about 700 EUR.
