What is the average house price in Montenegro?

Authored by the expert who managed and guided the team behind the Montenegro Property Pack

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INVESTROPA

A team specialized in real estate investing in European countries (Montenegro, Croatia, Portugal, Greece, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Montenegro. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At InvestRopa, we explore the Montenegro real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Podgorica, Budva, and Kotor. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

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Inna Kataeva 🇲🇪

Investment Consultant

Inna Kataeva specializes in real estate investment across Montenegro. She provides tailored support, from selecting apartments, land, or commercial properties to advising on location benefits like climate, infrastructure, and development plans. With a focus on transparency, Inna ensures seamless transactions by collaborating with trusted agencies, developers, and legal professionals. Whether seeking a coastal retreat or an investment opportunity, she is committed to guiding you through every step with expertise and care.

What types of properties are most commonly sold in Montenegro?

Apartments dominate Montenegro's property market, particularly in coastal cities like Budva, Kotor, and Tivat, as well as in the capital Podgorica.

Villas represent the second most popular property type, especially in exclusive coastal developments such as Porto Montenegro in Tivat and Luštica Bay. These luxury properties attract high-net-worth buyers and international investors seeking premium waterfront living.

Traditional stone houses in historic towns like Kotor and Herceg Novi appeal to buyers seeking authentic Montenegrin character and charm. Mountain chalets in ski resort areas like Kolašin and Žabljak are gaining popularity among eco-tourism enthusiasts and winter sports lovers.

Land plots are available for purchase, though foreigners typically need to buy land through a registered Montenegrin company due to legal restrictions.

It's something we develop in our Montenegro property pack.

Which regions or cities in Montenegro have the highest, average, and lowest property prices?

Location	Price Category	Price Range (€/m²)
Porto Montenegro, Luštica Bay, Sveti Stefan	Highest (Ultra-luxury)	€5,000-€14,000+
Budva, Kotor, Tivat (prime areas)	High	€2,700-€5,000
Petrovac, Herceg Novi, Becici	Mid-range	€2,000-€3,500
Podgorica (capital)	Average	€1,520-€2,250
Bar, Ulcinj	Budget coastal	€1,100-€2,500
Kolašin, Žabljak	Budget inland	€1,200-€1,400
Central Region towns	Lowest	€700-€1,050

What is the average price per square meter for each property type and area?

Luxury villas and waterfront apartments in premium locations like Budva, Kotor, Tivat, and Porto Montenegro command the highest prices at €5,000-€14,000 per square meter.

Premium coastal apartments in established tourist destinations like Budva, Kotor, and Tivat typically cost €2,700-€5,000 per square meter. Mid-range coastal properties in areas like Petrovac, Herceg Novi, and Becici range from €2,000-€3,500 per square meter.

Budget coastal options in Bar and Ulcinj offer more affordable entry points at €1,100-€2,500 per square meter. Mountain chalets in Kolašin and Žabljak cost €1,200-€1,400 per square meter, while the capital city Podgorica averages €1,520-€2,250 per square meter for new builds.

Central Region properties represent the most affordable segment at €700-€1,050 per square meter, though these areas have limited tourism appeal and rental potential.

What are example total purchase prices including all taxes, legal fees, and agency commissions?

For a 50-square-meter coastal apartment in Budva priced at €3,000 per square meter, the total buyer costs would be approximately €156,123.

This breaks down to a €150,000 purchase price, plus €4,500 in transfer tax (3% for properties up to €150,000), approximately €423 in notary fees, and around €1,200 in legal fees. Agency commissions are typically paid by the seller, not the buyer.

For a luxury 150-square-meter villa in Porto Montenegro at €10,000 per square meter, total buyer costs would reach approximately €1,589,000. The €1,500,000 purchase price incurs €82,000 in transfer tax (€22,000 base plus 6% of the amount exceeding €500,000), €1,000-€2,000 in notary fees, and €2,000-€5,000 in legal fees depending on transaction complexity.

Transfer tax rates are progressive: 3% up to €150,000, 4% from €150,000-€500,000, and 6% above €500,000.

How have property prices changed over the past 5 years and the past 12 months?

Montenegro's property market has experienced explosive growth over the past five years, with national average prices increasing by over 50% when adjusted for inflation.

Coastal areas have led this surge, with some locations seeing up to 49% growth in just the last two years. The past 12 months have been particularly remarkable, with national property prices jumping 20.8% in 2024 alone.

This dramatic appreciation reflects Montenegro's growing popularity among international buyers, increased tourism demand, and limited supply in prime coastal locations. Foreign investment has been a key driver, particularly from Western Europe and Russia.

As of June 2025, the pace of growth has moderated but remains positive, with coastal areas expected to see 3-7% annual appreciation while inland areas may experience 2-5% growth.

What are the current forecasts for real estate prices over the next 1 year, 5 years, and 10 years?

For the next 12 months through mid-2026, experts forecast moderate growth of 3-7% in prime coastal areas and 2-5% elsewhere, as the market stabilizes from its recent rapid expansion.

The five-year outlook through 2029 projects steady annual growth of 5-6%, driven by continued tourism development, foreign investment, and Montenegro's potential EU accession prospects. This sustained growth reflects the country's improving infrastructure and international recognition as a premium destination.

The ten-year forecast suggests continued appreciation, with potential acceleration if Montenegro joins the European Union. Historical precedent from Croatia's EU accession in 2013 shows significant property value increases following membership.

Market fundamentals supporting long-term growth include limited developable coastal land, increasing international tourism, and Montenegro's strategic position in the rapidly growing Balkans region.

Which areas are considered the most expensive, which are up-and-coming, and which are budget-friendly today?

The most expensive areas include Porto Montenegro in Tivat, Luštica Bay, Sveti Stefan, and Dukley Gardens in Budva, where ultra-luxury properties command premium prices exceeding €10,000 per square meter.

1. **Up-and-coming areas showing strong potential:** - Bar's expanding waterfront district with new developments - Rafailovici near Budva, benefiting from proximity to established tourism - Kolašin mountain region, growing eco-tourism destination - Žabljak area, developing winter sports and nature tourism - Tivat's surrounding areas beyond Porto Montenegro2. **Budget-friendly options for value-conscious buyers:** - Bar and Ulcinj on the southern coast - Kolašin and Žabljak for mountain properties - Central Region towns for the lowest entry prices - Inland Podgorica suburbs for urban living - Emerging neighborhoods in established coastal towns

It's something we develop in our Montenegro property pack.

What are the best choices if I want to live in Montenegro year-round?

Podgorica offers the best urban amenities for year-round city living, with steady rental income potential, lower living costs, and excellent infrastructure for professionals and families seeking a quieter lifestyle.

Coastal cities like Budva, Kotor, Tivat, and Herceg Novi provide vibrant expat communities, international amenities, and strong rental demand, though they can become crowded and expensive during summer tourism season. These locations work best for retirees, digital nomads, and those prioritizing lifestyle over cost.

Inland mountain areas like Kolašin and Žabljak appeal to nature lovers and those seeking peaceful, affordable living with access to outdoor activities. These regions offer the lowest cost of living but limited urban amenities and job opportunities.

Climate considerations favor coastal areas for year-round comfort, while mountain regions experience proper winters with snow, making them suitable for those who enjoy seasonal variation and winter sports.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Montenegro versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the smartest investment options if I plan to rent the property short-term or long-term?

Short-term rental investments perform best in coastal apartments in Budva, Kotor, and Tivat, where tourist demand generates yields of 4-10% during peak season from May through September.

Long-term rental strategies work well in Podgorica and Herceg Novi, providing stable year-round income from expats, locals, and business travelers. These markets offer more predictable returns of 3-6% annually with lower management requirements.

Luxury villas in Porto Montenegro and Luštica Bay attract affluent long-term tenants and offer premium rental yields, though they require higher initial investment and specialized property management services.

Mountain properties in Kolašin and Žabljak are emerging as eco-tourism and winter sports rental opportunities, though the season is shorter and yields are currently lower than coastal alternatives. However, these areas show strong growth potential as Montenegro develops its mountain tourism infrastructure.

What type of properties and locations offer the best potential for resale with profit in the future?

Coastal apartments and villas in established destinations like Budva, Kotor, and Tivat offer the strongest resale potential due to consistent demand, limited supply, and high appreciation rates.

1. **Properties with highest resale potential:** - Waterfront apartments in Budva and Kotor Old Town - Modern villas with sea views in established developments - Luxury properties in Porto Montenegro and Luštica Bay - Well-located apartments near marinas and historic centers - Properties in up-and-coming areas like Bar and Rafailovici2. **Factors that maximize resale value:** - Sea views and proximity to water - Walking distance to amenities and attractions - Modern construction with quality finishes - Parking availability in urban areas - Legal compliance and proper documentation

Up-and-coming areas like Bar, Rafailovici, Kolašin, and Žabljak offer lower entry prices with potential for strong future growth as these markets mature and develop tourism infrastructure.

It's something we develop in our Montenegro property pack.

What are typical mortgage terms, rates, and loan-to-value ratios available to foreigners in Montenegro?

Mortgage Term	Foreigner Requirements	Details
Interest Rates	5.1-6.5% annually	Higher than resident rates, varies by bank
Loan-to-Value (LTV)	30-50% maximum	Requires 50-70% down payment
Loan Term	Up to 10 years	Some banks limit to 7 years for non-residents
Required Documentation	Extensive	Income proof, bank statements, passport, property valuation
Bank Restrictions	Limited availability	Some banks don't offer mortgages to foreigners
Additional Requirements	Variable	May require proof of future rental income

How do average property prices in Montenegro compare with similar destinations like Croatia, Portugal, or Greece?

Montenegro remains significantly more affordable than Croatia, Portugal, and Greece for comparable coastal properties, offering strong value for international buyers.

Croatian coastal properties in prime locations cost €3,000-€10,000+ per square meter, while Montenegro's equivalent areas range from €2,700-€14,000 per square meter. However, Montenegro's luxury segment now matches or exceeds Croatian prices in ultra-premium developments.

Portuguese coastal properties average €2,500-€8,000+ per square meter, with higher property taxes and transaction costs than Montenegro. Greek coastal properties range from €2,000-€6,000+ per square meter, offering similar pricing to Montenegro but with a more established, mature market.

Montenegro's advantages include lower transaction costs, no property taxes for residents, and stronger rental yields due to its emerging market status. However, mortgage availability for foreigners is more limited compared to EU countries like Portugal and Greece.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. InvestRopa - Buying Property Montenegro Worth It
2. Montenegro Guides - Real Estate Property Buying
3. Objekta Real Estate - Montenegro Investment Guide
4. Lustica Bay - Property Buying Guide 2025
5. MD Realty - Real Estate Market Analysis 2025
6. Montenegro Business - Apartment Prices Q1 2025
7. InvestRopa - Montenegro Real Estate Market
8. InvestRopa - Montenegro Property Investment
9. Global Property Guide - Montenegro Price History
10. Tranio - Montenegro Property Prices