That Montenegro this year was one of the most interesting destinations in the Mediterranean for the purchase of the real estates, a destination in which the rich businessman wish to spend their vacation and build luxurious villas testifies the official record about the paid tax on the turnover of the real estates according to which during the year 2006 on Budva Riviera and in Boka Kotorska almost half a billion of euros of real estates was sold and mostly to foreign buyers.
The money which local people get from the sale of the land or from the sale of the houses mostly stays in Montenegro, so being guided by the logic that the money invested in the real estate never lose the values, they are buying apartments and business spaces, mostly in Podgorica or in the place of their staying, and often they buy real estates in Belgrade.
According to the official record, only during the last year on the area of Budva municipality 275 millions of euros of real estates was sold, which is twice as much than the state of Montenegro got from the entire privatization of the economic and tourist capacities.
Even though the “buying and selling fever” is not slackening the officials in the Municipality think that during the year 2007 the trend of the sales of the real estates will be continued but surely not in the volume as it was the case in the previous year, which for sure will remain recorded in the annals as an economical phenomena.
According to the words of the secretary for the economy and the finances Mihailo Djurovic in the municipal cash register during the last year 2, 75 millions of euros have been paid in on the account of the property tax.
– The charging of the tax on the turnover of the property controls the Republic, that is, it is being charged by the tax administration. That is the joined income which the Tax administration and the local managements are dividing in half. Two percents from the amount which is indicated in the sales contract is being charged. Even though with the decision about the budget for the year 2006 we initially planned that the income in the cash register from that tax will be 950.000, 2, 2 millions of euros were charged, because of which we had to do a rebalance. The tax administration in the past 20 days has reinforced the charging so an additional influx of half a million of euros was made. In that way the total figure on the name of the profit on turnover for the last year has reached 2, 75 millions of euros – explained Djurovic.
No matter the millions which are being earned, and which turned the recently modest families into millionaires, often the sales of the land and old family houses in the villages above Budva and Sveti Stefan, which are most interesting to foreign buyers, is being hid even from the closest relatives. No one wants to talk about how he or she is spending the money from the sales of their patrimony. What can be seen is that beside on the purchase of the real estates, they like to spend the money on new expensive cars, with which Budva was overcrowded with during the last year. There almost isn’t a new model of a four wheeler which had its premier on the prestigious fair of cars, that after a month you couldn’t see it on the streets of Budva. Of course one shouldn’t forget that many used the earned money, so they are paying in for tourist arrangements and are visiting exotic places from Cuba, Rio de Janeiro up to Seishells.
Similar situation is also in the Kotor municipality, where in the past three years a significant growth of circulation of the real estates is marked, so during the year 2006 the turnover of almost 70 millions of euros was marked. That the last year was a record one testifies the record from the year 2005 when the sold real estates were 33 millions worth, while in the year 2004 the turnover was about 15 millions of euros.
If you single out several sales of bigger real estates or complexes of land which were done by the either Municipality or enterprises, the other transactions were made among the local people where in most cases the buyers were foreigners.
The counsel for economic issues in the municipality Kotor, Ivo Magud says that the purchase is significantly distinct which is made so that further sale could be done, and that in those cases the buyers are foreign citizens.
One part of the physical persons buys real estates so that they could further sell them, while the other part, a smaller one buys them for their own necessities, that is, for living and for various business activities – said Magud.
He thinks that the money from the sale stays in Kotor.
-Everything depends what is the motif of the purchase, but surely the money remains in Kotor. If some foreigner bought a real estate for example for 5 millions of euros, and then he is selling it for 10 millions, surely these five millions will stay here. And the question is what he will do with the remaining five millions, that is, whether he will trade here again or he will take the money out – said Magud.
The director of the Kotor agency for real estates Montenegro real estate, Mark Wild, also thinks that local people which sells the real estates is purchasing in Kotor.
– There is a certain number of those who after the sale of their property in Kotor decide to buy something in the neighboring Tivat because of the more favorable prices, and we also had some cases of purchase of real estates in Belgrade – said Wild.
He points out that different situation is with the people from Serbia who have weekend homes or some other real estate; because when they sell their property they are not purchasing anything else here again.
Last year on Herceg Novi municipality real estates have been sold in the amount between 80 and 100 millions of euros, and in the municipal cash register went 801.000 euros from the tax. That is two and a half times more than it was the case a year before. In the sales and purchase participated about 1.500 persons, and the buyers were mostly foreigners. The invasion of the buyers hit first Lustica, a peninsula on the entrance in Boka. For a long time , under the special attention of the Military, without the electricity and water, without any urban plans, for decades it was out of the interest of the buyers.
The year which is behind us was marked by big purchases of the complexes in the Herceg Novi villages. One of the last transactions was the sales of the land in Bjelska Krusevica, a village with 2 or 3 permanently inhabited local people, for 5 millions of euros. Several months earlier on Lustica, a complex of land was sold for 9 millions of euros. And the square meter of the housing space in a house on Rose, former fishing place, also on Lustica, a buyer paid 6.000€. People from Novi rarely invest the money for starting of some business, except maybe for the building of apartments for renting to tourists.
V.Lajovic – I.Komnenic – S.Kosic
EVEN THE CLOSEST RELATIVES DO NOT KNOW THE FIGURES
Often the big money received by the sales of the real estates is shared among the great number of heirs and owners, so the millions sums are just “melting”.
Few leave the money in the bank and save it, even though the fear of the burglars is great. That this story has a stand point speaks the recent case of the Herceg Novi dentist, to whom, still unknown thieves, took out from his home 150.000€. He got that money just a few days earlier by the sales of his land. No one, not even the closest relatives, unless they are in the heir line, the sums which are gained by the sales of the real estates, are being told. Even in the public the sellers speak rarely about that. They are trying not to draw attention to themselves. Something still leaks. First, as those who know say, the debts are being paid, which often come to a figure of closely to 100.000€. Then the apartments in Podgorica and Belgrade are being bought, mostly for the children, and then the money is being invested again in the purchase of the real estates. It occurs that the sellers over calculate themselves. Stuck by the great amount of money, while they are thinking where to invest the money, the prices are continuing to grow, and then they are found “in a mess”.
The money which they get from the sale of the land or a house mostly stays in Montenegro. Except the real estates the arrangements in the exotic places are also popular.
IN “SMALL KUWAIT “85 MILLIONAIRES
Recognized by the synonym “metropolis of tourism”Budva Riviera after the last year’s euphoria of the sales of the real estates got another synonym “Small Kuwait”, turning this, a hundred years ago poor fishing place into the, at the moment, richest place on the territory of the former Yugoslavia.
Landlords, mostly local people, in the past years have started slowly to sell piece by piece of their patrimony, and mostly they got for that, even for the world conditions, fabulous amounts, which sometimes reach the amount if several millions of euros. We shouldn’t remind that the wealthy Russians, Irish man and Denmark people are even now ready to pay for a good piece of land, especially from Milocer to Rafailovic, up to 500€ per square meter of the land. That is where from that name “Small Kuwait” comes from, because according to unofficial records at the moment in Budva there are about 85 millionaires, and of those they are the ones who at their bank accounts have at least a million of euros. It would not be strange, that if the Forbs list for this part of the world should be made, that at least several people from Budva is found among the 10 richest people on this “rocky Balkans”.