Organized workers' housing cooperatives in Montenegro now provide apartments for their members at prices that are 30 to 40 percent lower than market prices.
Interlocutors of "Vijesti" state that this is a good way to provide a roof over the head for a large number of families who cannot afford the currently very high real estate prices, but that more significant support from the state is needed.
According to Monstat data from September last year, the average price per square meter of a newly built apartment in Montenegro is 2.228 euros, and on the coast it is 2.458 euros, meaning that two and a half average salaries are needed for an average square meter.
The oldest active cooperative of educators, “Solidarno”, which has been operating since 2002, has so far built 790 apartments and distributed 9,2 million euros worth of soft loans to its members for renovations and expansions. The cooperative of healthcare workers has built 322 apartments and distributed 3,3 million euros worth of soft loans since 2012.
Cooperatives are financed by membership fees, donations, sale or lease of housing and business premises to members. The Law on Housing Cooperatives also stipulates that the state and local governments shall encourage their work through social, land, credit and fiscal policy measures, tax breaks through the transfer of land and exemption from paying utilities.
Director of the Housing Cooperative of Healthcare Workers of Montenegro "Zdravstvo" Dijana Pavlicic She said that so far they have built 322 housing units for their members, of which 204 in Podgorica, 70 in Nikšić and 48 in Radovići near Tivat, and that they have approved 3,3 million euros in loans for 268 members.
"In 2025, we did not have any apartment sales, due to the demanding procedure we had to carry out with the Ministry of Health and other state authorities. The planned projects will be financed within the framework of the Agreement signed with the Minister of Health, Dr. Vojislav Šimun", and in accordance with it, in the period from 2024 to 2026, the state will provide a total of one and a half million euros to finance housing solutions for healthcare workers. The funds will be distributed in 500.000 euros per year, and the Ministry of Health has already made a payment of 500.000 euros last year and the year before last," said Pavličić.
She states that their housing cooperative now has about a thousand members, and the membership fee is one percent of earnings.
She indicated that they have cooperation with several municipalities. In Kotor, they are completing a building with 54 apartments, in Berane they are working on a conceptual design for a building with up to 25 residential units. In Cetinje, the preparation of documentation for the construction of a residential building on the site of a former kindergarten is underway, they have begun talks with the Municipality of Budva about allocating a new plot, while in Nikšić there is also interest in a similar project.
Pavličić said that she will work with the Ministry of Health to increase their share to a minimum of 800 thousand per year, given the number of projects that are underway and planned in the coming period.
"We will also discuss with the Government the regulation of legislation, which has not recognized the specific nature of the work of cooperatives, which greatly complicates our work, given the numerous legal gaps and uncertainties in the interpretation of the law, which are accordingly applied to housing cooperatives," said Pavličić.
They also plan to announce competitions for granting loans, and in smaller municipalities the money will be directed towards individual construction.
Director of the Education Workers' Cooperative "Solidarno" Zoran Stanišić states that since its founding in 2002, they have built 790 apartments in 15 municipalities, distributed loans for adaptation and expansion of 9,2 million for a repayment period of up to 30 years with an annual interest rate of one percent, as well as a grant of 300 thousand.
He states that the prices of apartments offered to cooperative members are reduced by the value of the plot, utilities, financing costs, while they offer lower interest rates, longer repayment periods, and various other benefits.
"Finally, it can be concluded that the difference in value is 30-40% compared to the free market, and in favor of our cooperative members. Our cooperative is financed by voluntary membership fees, which amount to one percent of net monthly income. Another form of financing is based on an agreement with the Ministry of Education, which now amounts to 700.000 euros annually. These days we expect to sign a new Agreement for the next three years. We hope for a larger amount. Our cooperative currently has around 2.500 members," said Stanišić.
The cooperative's annual budget is now around one and a half million euros. Stanišić believes that this is not enough for all the activities they have and plan to do to improve the living and housing conditions of their cooperative members.
"We believe that the funds allocated by the state through the Ministry of Education, Science and Innovation should be at a higher level, and in the current circumstances should not be less than one million euros annually. This would result in a greater number of individual loans being granted, and therefore in a greater number of cooperative members," said Stanišić.
They plan to complete 40 apartments in Kotor this year, as well as 12 in Plav.
"We have not yet determined the price, but we believe that it will be significantly lower than the market price. Activities are also underway regarding the allocation of new plots in the municipalities of Nikšić, Cetinje, Kolašin, Podgorica, Ulcinj and Tivat," said Stanišić.
The last distributions were 108 apartments in Donja Gorica, when they sold a square meter to members for 670 euros, also in 2022, they distributed 159 apartments in Budva with state subsidies, the construction of which took ten years, and the price was 650 euros, according to the agreement from 2012.
"We believe that the work of housing cooperatives can be improved through the modernization of the legal framework, strengthening transparency, better education of members about their rights and obligations, as well as through strengthening cooperation with municipalities and state institutions, especially in the area of financial support and allocation of construction plots under favorable conditions. We also believe that through a more flexible tax policy - exemption from VAT, we could achieve a more favorable price per square meter, because the construction of housing units under the auspices of cooperatives should be considered of special importance and interest for the State," said Stanišić.
"Vijesti" sent questions on this topic to both the Montenegrin Fund for Solidarity Housing Construction and the Confederation of Trade Unions, but received no answers. This Fund's account has been blocked for more than six years for a debt of 3,7 million. The Fund is also on the Tax Administration's blacklist with a debt of 4,1 million and a canceled reprogram.
Government slows down establishment of administrative and judicial cooperative
The Administration and Judiciary Union, although the largest branch organization, is one of the few that does not have its own housing cooperative, although they have been trying to reach an agreement with the Government for three years.
The president of this union Nenad Rakočević He told "Vijesti" that in 2023 they signed an agreement with the Government to form a Housing Cooperative called "Responsibility", through which 24 thousand employees in public administration and the judiciary would have the opportunity to resolve housing policy in a favorable manner. At that time, a co-financing agreement was also signed with the Government, which provided for the state's participation of at least one million annually.
"The remaining funding would be from the funds of the cooperative members, as well as
payments from employers who would essentially be the bearers of this story. With the arrival of the 44th Government, for reasons unknown to us, they stopped fulfilling their obligations - delegating their representatives to the management bodies of the cooperative, which is why it could not be constituted. Consultations are underway, which gives us optimism that the implementation will begin," said Rakočević.
He believes that cooperatives are currently the only way for workers to obtain affordable conditions for purchasing an apartment.
"As is known, real estate prices have reached unprecedented and disproportionate levels in relation to the financial capabilities of workers, i.e. their earnings. Apartment prices affect the life, functioning and existence of families. The possibility of providing a roof over one's head significantly affects demography, i.e. the birth rate and the very possibility of marriage, where this type of issue is the initial basis for further life. The state, as the bearer of all long-term strategies, must pay special attention to improving and improving the conditions for housing provision, because practice in recent years has shown us that real estate prices and rental rates have skyrocketed due to the influx of a large number of foreign citizens and their money," said Rakočević.
He believes that it is necessary to amend the current legal framework for the functioning of housing cooperatives in order to prevent abuses and increase state control, which would result in transparency and greater participation of workers and citizens in cooperatives.
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