Overview of Montenegro’s Housing Cooperatives
The article, published by Radio‑Televizija Nikšić (RTNK) and authored by journalist Branko Čupić, examines the current state of union‑led housing cooperatives in Montenegro. It highlights how organised workers’ housing societies provide apartments at prices 30‑40 % below market rates, offering an affordable alternative for families unable to afford the steep rise in real‑estate prices.
Scale and Impact of Cooperative Housing
Cooperatives such as “Solidarno” (educational workers, founded 2002) have built 790 dwellings and extended €9.2 million in adaptation loans. The health‑workers cooperative “Zdravstvo” (since 2012) has constructed 322 units and granted €3.3 million in loans. Together, these societies serve roughly 2 500 members, with membership fees set at one per cent of net monthly earnings.
Market Comparison and Pricing
Average new‑build prices in Montenegro stand at €2 228 per square metre nationally and €2 458 on the coast, equivalent to about two and a half average salaries for a typical apartment. Cooperative apartments are offered at 30‑40 % lower prices, with recent sales ranging from €650 to €670 per square metre, significantly reducing the financial barrier for members.
Funding Sources and Government Support
Cooperatives are financed through membership fees, donations, and the sale or lease of residential and commercial spaces. The law encourages state and local subsidies, tax relief, land grants and exemption from utility charges. In 2025, the Ministry of Health pledged €1.5 million for health‑workers housing, disbursed in €500 000 instalments, while the Ministry of Education and Science provides €700 000 annually to the “Solidarno” cooperative, with plans for a new three‑year agreement.
Ongoing Projects and Regional Expansion
Key construction projects include 54 new flats in Kotor, 25 units in Berane, and a forthcoming development on a former kindergarten site in Cetinje. Additional plans target 40 flats in Kotor and 12 in Plav this year, as well as parcel allocations in Nikšić, Cetinje, Kolašin, Podgorica, Ulcinj and Tivat. Smaller municipalities intend to channel funds toward individual homebuilding.
Legislative Challenges and Calls for Reform
Cooperative leaders stress the need for clearer legal frameworks, citing ambiguities that hinder operations. They advocate for enhanced state financing—suggested minimum of €1 million per year—and more flexible fiscal policies, such as VAT exemptions for cooperative construction, to further lower housing costs.
Broader Social Implications
Affordable cooperative housing is presented as a tool for stabilising demographics, supporting family formation and mitigating the social impact of soaring property prices driven by foreign investment. Trade union representatives argue that without such models, many workers face untenable housing conditions.
Future Outlook and Sustainability
The article concludes that, while cooperatives have demonstrably reduced housing costs and expanded access for thousands of members, sustained governmental backing and legislative clarity are essential for scaling the model across Montenegro and enhancing its contribution to sustainable, inclusive housing solutions.