Published on and written by Cyril Jarnias
Green Real Estate in Montenegro: Rapid Advancement
In Montenegro, green real estate is progressing by leaps and bounds as the country prepares for significant changes in 2025, fully aware of environmental impact and the urgency to comply with European standards.
Rigorous Standards for Sustainable Construction
This small Balkan country is implementing rigorous standards to make its buildings more sustainable, while offering attractive subsidies to encourage the adoption of innovative green technologies.
Redefining the Real Estate Market
In this article, we will explore how these efforts are redefining Montenegro’s real estate market, the competitive advantages they bring, and the challenges the sector still needs to overcome to achieve a greener and more sustainable future.
Good to Know:
Montenegro is gradually aligning with European standards for sustainable construction, with tax incentives for green real estate projects.
Eco-Construction and Environmental Standards in Montenegro
Popular types of eco-construction in Montenegro include:
- Wooden houses, valued for their low carbon footprint and natural integration into the landscape.
- Passive buildings, designed to minimize energy consumption through enhanced insulation and efficient ventilation systems.
- Construction using recycled or bio-based materials, such as flax or hemp, which are gaining popularity throughout Europe and gradually finding their place in the Montenegrin market.
| Type of Eco-Construction | Main Characteristics |
|---|---|
| Wooden House | Low carbon emissions, fast construction |
| Passive Building | High energy performance, advanced insulation |
| Recycled/Bio-based Materials | Waste reduction, low environmental impact |
Environmental Standards and Legislation
Montenegro has strengthened its regulations on building energy performance to align more closely with European standards. The legislation now requires:
- Mandatory integration of high-performance thermal insulation in new constructions or major renovations.
- Compliance with strict targets for reducing CO₂ emissions from the building sector.
- Progressive obligation to obtain an energy performance certificate for any new real estate property placed on the market.
Government Initiatives and Subsidies
To encourage the adoption of eco-friendly practices in construction:
- The government offers several subsidies aimed at reducing costs associated with using green technologies (solar panels, heat pumps).
- Tax incentives also exist for real estate developers who meet certain certified environmental standards.
- Pilot programs support the energy renovation of the existing building stock as well as the increasing integration of renewable energy sources.
Integration into Sustainable Development & Impact on Local Real Estate (2025)
These standards are fully integrated into Montenegro’s national strategy focused on balanced sustainable development between economic growth and environmental preservation. Their application contributes:
To enhancing the value of eco-friendly real estate properties, whose demand is significantly increasing among both local and international buyers,
To improving the overall thermal and health comfort of the residential building stock,
To positioning Montenegro as an attractive destination for responsible investments.
The expected impact is a continuous increase in the number of eco-construction projects and a higher value per square meter compared to traditional buildings. These dynamics are expected to intensify further as 2025 approaches, driven by the combined effect of new European regulations being progressively integrated into national law.
Good to Know:
Montenegro, in full transition towards a sustainable development model, is seeing an increase in eco-construction such as wooden houses, passive buildings, or those using recycled materials. The country imposes strict environmental standards, particularly regarding energy performance and carbon emission reduction, integrated into local legislation. To support this transition, government subsidies and initiatives encourage green construction, such as the “Eco-Friendly Building Initiative” program launched in 2023. These measures, combined with increased awareness of climate issues, positively impact the real estate market, making “green” projects more attractive and competitive. By 2025, the integration of ecological standards promises not only to reduce the real estate sector’s carbon footprint but also to stimulate the economy by creating jobs in sustainable construction.
Subsidies for Renewable Energy in Montenegro
Montenegro has implemented several subsidy programs aimed at promoting renewable energy in the real estate sector, as part of an ambitious national energy transition strategy.
The Household Energy Efficiency Incentive Program, funded by the European Union and implemented by the Environmental Protection Fund (Eco Fund) with support from UNDP, is one of the flagship initiatives. This program, with a total estimated value of over €15 million, has already enabled more than 4,500 households to improve the energy efficiency of their homes.
The subsidies cover several types of improvements:
- Window replacement
- Thermal insulation
- Solar panel installation
- Energy-efficient heating systems
More than 2,500 applications have already been approved, with an expected increase in the coming months. The program also contributes to local economic development by involving 27 Montenegrin companies in carrying out the work, thus creating green jobs and strengthening the competitiveness of companies offering environmentally friendly solutions.
| Type of Improvement | Benefits | Environmental Impact |
|---|---|---|
| Thermal insulation | Reduced energy costs | Decreased CO₂ emissions |
| Solar panels | Energy autonomy | Clean energy production |
| Efficient windows | Improved comfort | Reduced thermal losses |
| Eco-friendly heating | Improved indoor air quality | Reduced pollution |
The new Renewable Energy Law adopted in August 2024 provides for the first auctions for new renewable energy production projects in 2025. The ministry announced that Montenegro will launch its first auctions for market premiums for the construction of renewable energy power plants in early 2025.
These initiatives are part of the broader Strategic Options Program for Montenegro (2025-2030), which envisions the use of various renewable energy sources such as solar and thermal energy. These measures aim to reduce greenhouse gas emissions, contribute to carbon storage, and provide small-scale farmers with more resilient and diversified livelihoods.
“Energy efficiency is a key step towards a sustainable future for Montenegro”
The positive impacts of these subsidies on the green real estate industry are multiple:
- Stimulation of the green construction market
- Increased value of energy-efficient properties
- Creation of specialized jobs in the renewable energy sector
- Reduction of the country’s energy dependence
- Improvement of indoor and outdoor air quality
However, inconsistencies have been noted between the ambition set in the new renewable energy law and the projected trajectories for renewable energy development, suggesting that adjustments may be needed to fully achieve the targets set for 2025.
Good to Know:
In Montenegro, subsidies for renewable energy in the real estate sector include direct financial aid from the government, reduced-rate loans, and tax incentives encouraged by international organizations such as the European Development Bank. Amounts ranging from €10,000 to €50,000 can be obtained for projects meeting energy efficiency and environmental impact criteria. To be eligible, projects must notably include the installation of solar panels or the use of geothermal energy. These subsidies have already enabled the success of various projects, such as the transformation of old buildings into passive buildings in Podgorica. By aligning with ecological objectives for 2025, these aids aim to reduce the country’s carbon footprint while making green real estate more accessible and profitable. For the future, simplifications in administrative procedures and the expansion of available funds are under discussion to further stimulate the adoption of renewable energy.
BREEAM Certification: An Asset for Green Real Estate
BREEAM certification is emerging as a major lever for the transition to green real estate in Montenegro. Globally recognized, it assesses and enhances the environmental performance of new or renovated buildings, encouraging developers to adopt sustainable and innovative construction practices.
Main Criteria Assessed by BREEAM:
- Energy efficiency
- Waste management
- Use of sustainable resources (eco-friendly materials, responsible water management)
- Indoor air quality
- Overall ecological impact
| Criterion | Objective | Alignment with 2025 Government Subsidies |
| Energy Efficiency | Reduction of consumption and emissions | National priority to limit energy dependence |
| Waste Management | Decrease in landfill volume | Regulatory requirement to access aid |
| Sustainable Resources | Responsible use, local materials | Favored by green public procurement policies |
The integration of these criteria allows certified projects to increase their attractiveness to investors concerned with sustainable profitability. BREEAM buildings offer:
- Significant reduction in energy costs
- Increased real estate value in local and international markets
- Easier access to public subsidies planned in the 2025 national climate-energy plan
BREEAM certification thus becomes a differentiating factor: it attracts demanding international clientele while allowing anticipation of Montenegrin regulatory evolution focused on ecological transition.
Concrete Examples in Montenegro:
Several recent residential complexes have obtained BREEAM certification, such as:
The Terra Verde Complex in Podgorica
Observed benefits:
- 25% reduction in energy consumption
- High rate of use of local materials certified FSC or equivalent
Direct result: quick access to state financial support through the “Green Buildings Montenegro 2025” program
Tenants also enjoy superior environmental quality (filtered indoor air) and investors benefit from increased occupancy rates.
The BlueGreen Tower Commercial Building in Budva
Financial advantages:
- Reduced common charges thanks to smart resource management (rainwater harvesting)
Ecologically:
- Innovative integrated waste sorting system from the design phase
This project benefited from the tax bonus reserved for constructions labeled with a recognized international certification.
In Summary
Obtaining BREEAM certification in Montenegro not only ensures better environmental performance but also privileged access to various national financial incentives designed to accelerate the widespread adoption of green building before 2025.
Good to Know:
BREEAM certification plays a crucial role in Montenegro’s green real estate by promoting improved environmental performance of buildings and attracting investors interested in sustainability. It assesses criteria such as energy efficiency, waste management, and the use of sustainable resources, which align with the objectives of Montenegrin government subsidies planned for 2025. Projects like the eco-residence in Podgorica, BREEAM certified, demonstrate these benefits, enabling significant reductions in energy costs while increasing their market attractiveness. The approach ensures long-term profits for investors and compliance with international standards, boosting the country’s appeal for sustainable real estate projects.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
