The phenomenon of illegal construction in Montenegro dated back from ’70 ‘80 of the last century. However, it is
changing informal settlements into formal, where was cited: “The informal construction has extremely been up–
todate in the nineties. The whole settlements “grew up” with the informally built constructions.
Unfavorable economic situation and complicated procedure of getting building permit for building a home were
the starting point of building informal housing construction”. It was a case especially with citizens who, for reason
of economic migrations, moved from North of Montenegro to Podgorica. As for informal construction, well known
between citizens as the illegal construction, it appears into two forms: 1) social illegal construction in the
suburb of the urban areas and 2) corporative constructionresidential buildings, office buildings, hotels and etc.,
emerging mainly in the city centre.