Why are there so many half-built houses in Montenegro?
When you travel through Montenegro, you immediately notice the numerous half-built houses that characterize the landscape. Unfinished shells, often with only a basic framework and unplastered walls, are omnipresent. This raises the question: Why are there so many half-built houses in Montenegro? To understand this, you need to take a look at the cultural, economic and social aspects of real estate financing in Montenegro.
The culture of self-financing
One of the main reasons for the many unfinished buildings is the culture of self-financing. In Montenegro, it is common for people not to take out loans to build their homes. Instead, they are financing the construction from their own funds. These funds often come from income in the high season, when tourism is booming and many families generate additional income.
Seasonal income as a source of financing
Montenegro is a popular tourist destination, especially during the summer months. Many Montenegrins run small guesthouses, apartments or other tourist services that are well booked during the high season. This additional income is then often invested in building a house. However, as this income is seasonal and not continuous, construction is taking place in stages. Every year, the income from the high season is used to build the house a little further.
The long-term construction process
This step-by-step construction method means that it often takes many years to build a house. The owners build as far as the budget allows and then wait for the next peak season to continue building. As a result, many houses remain unfinished for long periods of time. While in other countries loans and mortgages make it possible to build a house within a few months or years, in Montenegro it often takes a decade or longer to complete a house.
Advantages and disadvantages of self-financing
Self-financing has both advantages and disadvantages. A major advantage is that homeowners do not incur any debt and therefore do not have to pay monthly loan installments. This gives them financial freedom and independence. In addition, the risk of over-indebtedness, as can be the case with credit financing, is significantly lower.
One disadvantage, however, is that the long construction process can often lead to frustration. A half-finished house does not offer the same comfort as a fully finished one. In addition, building materials and building regulations can change over the years, which can further complicate construction. The permanent construction site can also affect the aesthetic appearance of the surroundings and possibly reduce the value of the property.
Social and economic aspects
In addition to the culture of self-financing, there are also social and economic reasons for the numerous half-finished houses. In Montenegro, there is traditionally a strong attachment to one’s own country and one’s own property. Owning your own home is an important status symbol and a sign of prosperity and security. Many families save for years to build their own home, accepting the long construction times.
In economic terms, Montenegro is a country with a comparatively low average income. Loans and mortgages are often associated with high interest rates and are simply unaffordable for many people. This makes self-financing the only realistic option for many homeowners.
Advantages of self-financing for the state
The practice of self-financing offers advantages not only to homeowners, but also to the state. One of the main advantages is that the overall indebtedness of the population remains relatively low. As Montenegrins do not take out large loans to build their homes, the risk of widespread private debt and the associated financial crisis is reduced.
Another advantage for the state is the stability of the banking sector. Without a high number of real estate loans, banks are less susceptible to payment defaults and financial instability. This contributes to the country’s overall economic stability and reduces the need for government intervention or rescue packages for the banking sector.
The influence of external factors
External factors such as economic fluctuations, political uncertainties and natural disasters can also delay the construction process. One example of this is the economic crisis of 2008, which also hit Montenegro hard. Many construction projects were halted or delayed at the time due to a lack of funds.
Conclusion
The numerous half-built houses in Montenegro are a visible sign of the local building culture and economic situation. The practice of self-financing from seasonal tourist income means that the construction of houses often takes many years. This has both advantages in the form of financial independence and disadvantages such as long construction times and aesthetic impairments.
Nevertheless, this method is deeply rooted in Montenegrin culture and reflects people’s strong attachment to their properties. It also shows the creative ways in which Montenegrins overcome their financial challenges and realize their dream of owning their own home despite limited resources. In addition, this practice contributes to the country’s economic stability by keeping the population’s debt low and making the financial system less vulnerable.
This insight into construction methods in Montenegro offers not only an explanation for the phenomenon of half-built houses, but also an understanding of the cultural and economic backgrounds that characterize this practice. It remains to be seen whether this tradition will change in the future, as economic development and access to funding may improve. Until then, the half-finished houses will continue to dominate the Montenegrin landscape and bear witness to the special architecture of this fascinating country.
