Land became cheaper due to the global crisis

In the continuation of the trial of the former mayor of Podgorica, Miomir Mugoša, court expert and appraiser Sanja Radović explained in detail yesterday the 16 objections that the special prosecutor Sanja Jovićević had to her findings and opinion on July 2, who evaluated the findings as contradictory and contradictory.

Yesterday, in the Podgorica High Court, Radović recalled that her task was to determine the market value of land with a total area of ​​15.205 square meters in two time averages - June 21, 2007 and October 27, 2011.

She explained that, related to the real estate market, the economic environment in Montenegro in 2007 was characterized by the influx of foreign investments of one billion and 57 million euros, according to the source of Monstast, then the relatively easy availability of bank loans, a liberal attitude towards planning regulations, an unprecedented growth trend stock market and extremely high growth of the gross domestic product.

"One of the logical consequences of such developments is that in 2007, the Montenegrin real estate market was characterized by significantly higher demand than supply, especially those properties that were ready for immediate use. That is why in that period the price growth of all types of real estate was exponential, additionally supported by the perception of potential buyers that real estate purchased in 2007 will reach a significantly higher value in the immediate future and provide the owner with a large profit in a relatively short period of time. In the context of such an economic environment, taking into account the physical and legal attributes that characterize the immovable property that was the subject of my assessment as part of the expert opinion in this court proceeding, the market value of the land per square meter was 246 euros, although the built-up indices were low, and allowed only business purpose", said Radović.

She explained in the courtroom that, in contrast to 2007, four years later the market was significantly saturated with the offer of residential premises, the construction of which began immediately after the "real estate boom".

"Gross domestic product growth was only 3,2 percent compared to the previous year, and foreign investments fell by 54 percent compared to 2007. As a consequence of the financial and economic crisis of 2009, the banks' policy regarding lending to the economy and the population was extremely strict. In the context of such an economic environment, taking into account the physical and legal attributes that characterize the assessed real estate, the market value of the land per square meter was 169 euros, for an area of ​​15.205 square meters, at the location next to the railway line at the Old Airport, although the built-up indices were significantly higher , and the permitted purpose was extended to housing," explained Radović.

She also pointed out that in practice there is no law that the price of land should always follow the price of apartments, and especially not proportionally, as plaintiff Jovićević claims in her objections.

The former mayor of Podgorica, Miomir Mugoša, was accused of damaging the budget of the Municipality of Podgorica by 6,7 million euros by selling the city's construction land to the company "Carine".

According to the indictment, Mugoša, as mayor, used his official position and, without conducting the public procurement procedure, made a decision to transfer the right to use the city's construction land to the company "Carine".

The trial continues on September 11.