Big plans for the outdated system: The government determined the medium-term work program of the Real Estate Administration until 2030

A significant part of the Real Estate Administration system was developed more than ten years ago, which is why an investment of 11,3 million euros is planned over the next five years to keep up with technological progress.

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They are also planning a digital register of real estate prices (Illustration), Photo: Shutterstock
They are also planning a digital register of real estate prices (Illustration), Photo: Shutterstock
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

An outdated system, infrastructure at the limits of its capabilities, and a lack of protection in the event that the IT network stops working are just some of the problems facing the Real Estate Administration, which it plans to solve over the next five years by investing 11,3 million in the geodetic and cadastral information system.

In addition, the Administration intends to survey 830 kilometers of state borders, establish a cadastre in places where it does not exist, list cables, water and other pipes, determine the fertility of plots and form registers for apartment prices, house numbers, streets and squares...

These are some of the problems and plans listed in the Proposal for the Administration's Medium-Term Work Program for the period until 2030, which the Government established at the end of April.

This document directs the further development of surveys and the state cadastre in the next five years, along with the type, scope and cost of works, but also the geodetic-cadastral system in which the basic geodetic works, real estate, utilities, house numbers, streets, records of spatial units, state and other maps...

"A significant part of the Real Estate Administration system was developed more than ten years ago and has become obsolete due to rapid technological progress and constant innovations in IT areas. The infrastructure is currently operating at the limits of its capabilities, and the complexity, amount of data and new requirements have increased many times over. It is also important to note that the Administration currently does not have a "disaster recovery" location, which poses a significant risk to data security and the information system as a whole. In the coming period, there is a need to urgently begin activities to improve and upgrade both the Administration's software systems and the hardware and communication infrastructure. The total funds that need to be provided for the Geodetic and Cadastral Information System amount to 11.336.817 euros," the program states, for which suggestions were made by several ministries, municipalities, state-owned companies, institutions, the business and civil sectors...

Enrollment for 83 units is pending.

The administration points out in the document that there are a total of 795 cadastral municipalities in Montenegro, of which 712 are in the real estate cadastre. 16 of them are in the land cadastre, data presentation is underway for 24, while surveys have been completed for 28, and these processes are ongoing for another 15.

They state that this is why a real estate cadastre should be established for Tuzi, parts of Andrijevica, Berane, Gusinje, Nikšić, Petnjica, Plav and Rožaje, while it should also be introduced in municipalities where land cadastre records are used, i.e. Bijelo Polje, Mojkovac, Nikšić and Ulcinj.

The work of surveying and establishing these cadastres will require 3.950.000 euros over the next five years...

"A significant part of the real estate cadastre records, from the period up to the 1990s, was created and maintained in analog form. This concerns 456 cadastral municipalities, which includes about 64 percent of the total number of parcels in the real estate cadastre records. For these municipalities, the documentation has been converted into digital form, but the quality control procedure for digitization, harmonization and integration of the graphic and numerical parts has not been fully implemented.

"Using data without taking into account the facts about data quality can lead to erroneous conclusions, and the result may be unnecessary disputes or damage to property rights holders. Improving data quality is one of the biggest challenges," the Administration points out, emphasizing that they will need 2,1 million euros to renew the survey and harmonize this data.

The administration states that a new cadastre of lines, or a list of electrical cables and water and other pipes, needs to be created, because there has been a large amount of construction and changes in the area and laws, and that this process is "urgent." They add that the current situation, data and new regulations need to be analyzed, and that this will cost an additional 2.930.000 euros.

They plan to survey and mark the state border along a length of 830 kilometers, of which 254 kilometers with Bosnia and Herzegovina, 207 with Albania, 158 kilometers with Serbia, and 93 kilometers of the sea, while this work would cost 1.412.000 euros by 2029. They emphasize that the records would be formed by downloading data on the border from the archives of the Ministry of Foreign Affairs of Serbia, the Ministry of Internal Affairs and Public Administration, and by a new survey and marking of the state border.

Soil quality under scrutiny

In the next five years, the Administration intends to conduct assessments of soil fertility and quality, regardless of what it is used for - i.e. land assessment. This, they say, could improve tax policy and avoid paying uncoordinated taxes on plots, as payment would be based on quality, while better managing space during the development of spatial plans, obtaining data on state-owned land and facilitating expropriations...

This work would require around 890.250 euros by 2030.

"Montenegro has a total area of ​​13.812 square kilometers, about 30 percent of the territory is covered by areas that are not subject to land assessment, such as populated areas, barren land, water bodies... The total area subject to land assessment is approximately 967.000 hectares. Based on the current staffing situation in the Administration, if one expert can carry out land assessment on an area of ​​300 to 400 hectares per day, it is estimated that between 2.300 and 2.500 working days are needed to complete the work on the entire territory of Montenegro. This means that two experts would need about 1.200-1.300 working days, or about 750 working days if three experts were hired. It is concluded that land assessment would take between two and three years," the program states.

They also claim that the priority is to establish an Address Register, which would include all house numbers, streets and squares, and that the money for this project was donated by the Government of the Kingdom of Norway. As a result, they state, an application has been created, but at the municipal level there is still no special software to keep records, so it is proposed to use the new system jointly.

They point out that in the next five years, this work will require around 250 thousand euros, that the regulations have not been adjusted, and that the municipalities of Budva, Nikšić, Petnjica, Žabljak and Ulcinj have not worked on entering and submitting data. They emphasized that collecting data is not their responsibility, but that they have proposed the development of a manual.

According to this document, Montenegro currently has neither a system for mass valuation of real estate nor an appropriate registry through which this market would be monitored. The Administration states that this process is carried out individually, mainly for the expropriation of plots, and that there is no market overview or standards in valuation. They point out that the establishment of this system would increase market transparency, lead to fairer taxation and more efficient asset management, and that this process would cost 5.815.000 euros over five years.

They also state that 1,19 million euros will be needed for topographic surveys and cartography.

Will monitor the sale of apartments and plots

The Real Estate Administration, in cooperation with several institutions, plans to invest 422.250 euros in the next five years to establish and maintain a Real Estate Price Registry, in order to monitor prices and analyze the market, provide data, and determine rights over plots...

They point out that regulations are the basis for this system, but that they are currently lacking, so the concept of real estate value needs to be introduced as soon as possible, documentation and the method of keeping and form of the Register need to be prepared, as well as data analysis from administrations, tax services, notaries and appraisers needs to be conducted.

"Subjects from the public and private sectors are participating, so all planned activities must be mutually coordinated. It will be necessary to form working groups in order to coordinate and monitor the implementation of the establishment of the Register. Planned activities for the implementation of the project also relate to the preparation of tender documentation and the implementation of the public procurement procedure for the Creation and Implementation of the Register of Prices of Real Estate Transactions," the Administration's program states.

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