Podgorica, Montenegro

When it comes to Colliers International company worldwide, we will say that we offer Mortgage Banking Services also and that company has specialized teams within itself working in that area. That means that professionals of this kind can be engaged at the moment of necessity no matter if we have them in our local teams or not. Speaking about our experience in the region, it should be said that experience is not a big one due to a relatively short period of development of this credit policy in the region and due to law regulations of the states in the region, as well. There have been certain Colliers activities in this area in Serbia, the ones that are results of agreement with the banks but this residential property is not a prestigious one and there have been no interested buyers so far. Colliers International has not started yet in Montenegro those activities but we cannot exclude this possibility if sale of mortgage debt property starts in a bigger degree since there is a law possibility for that. Croatia and Bulgaria’s laws do not allow possibility of sale of this kind; courts and bank tenders defined by the banks are the ways to sell property like this. Albania has not been facing this situation yet which is good meaning that global financial crisis has not influenced that market in this sense yet. Greece has been facing this situation though Colliers has not been engaged regarding this so far. Sale of this type of property in Greece is mostly done by Sale and Leaseback meaning that the owner sells his property to the bank and lease it from the bank. Regarding foreign investors and their attitude in this sense toward Montenegro we can say that they have been showing interest for this lately. They are going directly to the banks to receive information about so-called “distressed property” and some of them contact Colliers to see if our portfolio includes assets like these. If sale of mortgage debt property starts in Montenegro in a really big degree, that will be a sign of serious impact of global financial crisis. Since demand-offer principle defines market mostly, we expect an extremely big fall of prices in case of sale of numerous assets here through direct bargain since we are not sure that there will be enough cash to cover that quickly. Also, that will directly influence on construction industry meaning that a certain number of investors in that sector will withdraw from the business, especially those that have no solid own finance sources.

About Colliers International

Colliers International is a global affiliation of independently owned commercial real estate firms. The organization's 12,700 employees span the world in 294 offices in 61 countries. On a worldwide basis, Colliers manages 1.1 billion square feet, and has revenue of $US 1.6 billion.

Contact Information

montenegro@colliers.com

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