Buying a property in Bar: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

Yes, the analysis of Bar's property market is included in our pack

Thinking of buying a property in Bar? You're not alone!

Many people are captivated by Bar's coastal charm and dream of owning a cozy apartment or a charming villa with sea views.

Does it make sense from a financial perspective, though? Are property prices increasing in Bar? What is the current trend? Is it more profitable to invest in Eixample or Gràcia? Are there any hidden fees? Where are the best rental yields?

In this article, everything is sorted out for you.

The Investropa team knows this market like the back of their hand. As a matter of fact, we've compiled all our findings in one pack. Get it now.

In the lines below, we'll provide you with helpful information.

How's the property market in Bar?

Is the property market in a good shape or a challenging one? Data will tell us the story.

Types of properties

In Bar, there are various types of properties available for sale.

These include apartments, houses, villas, and land. Apartments are typically suited for individuals or small families and can vary in size and amenities. Houses and villas offer more space and often come with yards or gardens, suitable for larger families or those who value privacy.

Land for sale provides opportunities for building custom homes or developments.

So, whether you're looking for a cozy apartment, a spacious house, a charming villa, or a piece of land to build on, Bar offers a range of property options to choose from.

Should you buy or rent?

(If you want to live there yourself and not rent it to others)

If Bar, Montenegro's coastal town, has caught your interest as a place to settle, you might be considering whether it's better to buy or rent a property in this picturesque area.

Generally, buying is a better choice than renting in Bar due to the area's high appreciation rates and growing market.

Still, if flexibility is key, consider going for renting.

Property prices in Bar

On average, according to the updated data from Statistical Office of Montenegro, purchasing a property in Bar will cost you around $2,400 per square meter.

Naturally, prices are quite spread out. The value of a square meter for a traditional home in Bar might be lower compared to a modern apartment. We actually offer a more in-depth analysis in our pack for buying property in Bar and in Montenegro.

To put things in perspective, it means that, instead of buying an apartment in a big city like Paris, you can afford 6 properties in Bar.

Also, housing prices in Bar are 58% cheaper than in Tivat.

The most expensive neighbourhoods in Bar are probably the city centre and the beachfront areas.

Trends

First and foremost, we have to acknowledge that Montenegro offers, today, peace and stability to investors. The last Fragile State Index that has been reported for this place is 57.9.

Keep this in view when pondering the viability of buying a property in in Bar.

Besides that, if we look at the IMF's GDP forecasts, Montenegro's economy is expected to soar by 13.8% in the coming 5 years, resulting in an average GDP growth rate of 2.8%.

If you intend to invest in real estate in Bar it's a good thing because a growing economy (usually) leads to higher incomes for citizens, enabling them to invest in real estate, which boosts demand and prices for properties.

Also, in Montenegro, the average GDP per capita has changed by 6.7% over the last 5 years. It's a satisfactory number.

These are cues signaling that property prices in Bar might go up in 2024 and during the coming years.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Montenegro right now.

Buying property in Bar

Buying real estate in Barand can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Bar and in Montenegro.

Buying process

Inside our pack, we've outlined the complete buying process, including a detailed breakdown of prices and yields per area, tips for negotiating the price, and information about mortgage options.

Here, we're presenting you with a more straightforward version.

This is the step-by-step process to purchase a property in Bar:

1. Check residency requirements and obtain a tax number (PIB).
2. Hire a licensed real estate agent familiar with Bar's property market.
3. Choose properties and view them in person or virtually.
4. Conduct a thorough property inspection and request a Building Technical Inspection Report (DGU).
5. Draft a Letter of Intent (LOI) indicating your offer and terms.
6. Negotiate the purchase price and conditions, considering the Property Transfer Tax (Porez na prenos apsolutnih prava).
7. Sign a Purchase Agreement (Kupoprodajni ugovor) prepared by a notary.
8. Pay a deposit, usually 10% of the property value, into an escrow account.
9. Obtain a Cadaster Extract (Izvod iz katastra nepokretnosti) and check the property's legal status.
10. Finalize the sale at the notary's office, where you'll need a certified interpreter if you don't speak Serbian.
11. Pay the Property Transfer Tax (if applicable) and notary fees.
12. Register the property at the Cadaster and the Real Estate List within 30 days to complete the purchase.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Montenegro.

Make a profitable investment in Bar

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Where to find a property

Explore these websites to find properties in Bar:

• Indomio.me - Search for properties for sale in Montenegro and customize your preferences.
• A Place in the Sun - Browse properties for sale in Montenegro.
• Patuljak.me - One of Montenegro's largest classifieds websites with a significant number of real estate listings.
• Realitica.com - Another commonly used website in Montenegro for real estate listings.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Montenegro.

Properties & Budget

As mentioned before, the average price per sqm in Bar is $2,400. A 1-bedroom property with an area of 60 square meters would cost approximately $144,000, and a 2-bedroom property with an area of 85 square meters would cost approximately $204,000.

However, the cost of properties will fluctuate depending on both their characteristics and their location.

Top neighborhoods in Bar typically come with higher price tags. For about $580,000, you could consider a residence in Susanj, whereas a residence in Dobra Voda might be priced at $540,000.

However, there are also places that won't strain your finances as much. You may find a condominium in Topolica for $80,000, or you might discover a condominium in Stari Bar priced only at $60,000.

Find a more detailed price list in our full pack for buying property in Montenegro.

Mistakes to avoid

Here are the main pitfalls when buying a property in Bar, Montenegro:

• Land ownership restrictions: Foreign buyers may face limitations on land purchases in certain areas, affecting investment opportunities.
• Land registry accuracy: Inaccurate or outdated land records can lead to disputes and legal complications during property transactions.
• Coastal development regulations: Strict coastal zoning laws can limit building possibilities or require expensive modifications for compliance.
• Infrastructure development delays: Some regions may experience slow infrastructure growth, impacting accessibility and property values.
• Local language barriers: Misinterpretation of contracts or negotiations due to language differences can lead to misunderstandings and financial losses.
• Seasonal rental viability: Relying on tourism income may prove challenging during off-peak seasons, affecting return on investment.
• Seismic risks: Montenegro is in a seismic zone, and inadequate consideration of earthquake-resistant construction may endanger property safety.
• Unpermitted constructions: Existing structures with unapproved additions could lead to penalties and costly modifications to meet regulations.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Montenegro Property Pack

Living in Bar

Living in Bar is a great experience, with its natural beauty, friendly locals, and laid-back atmosphere, it is an ideal place to buy property and settle down.

Cost of living

The cost of living in Bar is relatively low compared to many other cities in Montenegro. Prices for food, transportation, and housing are all relatively affordable.

Here are some examples to better understand the cost of living in Bar, Montenegro:

• Rent for a one-bedroom apartment in the city center: $400/month.
• Monthly public transportation pass: $20.
• Dinner for two at a local restaurant: $30.
• 1 liter of gasoline: $1.10.
• Utilities (electricity, water, cooling) for an 85m² apartment: $90/month.
• Gym membership at a local fitness center: $35/month.
• Ticket to a movie at a cinema: $5.
• Cup of locally brewed coffee at a café: $2.

Neighbourhoods

We want to show information in a way that is easy to understand and read. So, we made a table that lists the different areas in Bar. For yields, prices and rents, check our property pack.

Life in Bar

Bar is a small city located in the south of Serbia. Despite its size, the city has a vibrant economy fueled by a mix of small businesses, tourism, and agriculture.

What expats usually like the most in Bar is the relaxed atmosphere and the stunning views of the Adriatic Sea. They also enjoy the variety of local restaurants, beaches, and attractions.

Access to healthcare in Bar is generally good, with a number of hospitals and clinics providing medical services to the local population.

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Renting out in Bar

For those aiming to buy property solely for renting out and earning income.

Long-term

Tenant Profiles in Bar

If you decide to buy and rent out to long-term tenants, you should target young professionals, students, and families. For short-term tenants, you should focus on vacationers and business travelers.

Here is a little summary table we've made for you.

Rental yields

Nowadays, the rental yields you get in Bar are between 5% and 7%. There are some opportunities. So you know, a "good" rental yield is above 7%.

The best rental yields in Bar come from properties located in the city center, close to amenities such as shopping, restaurants, and transportation. This is because these properties are in high demand from tenants who are looking for convenience and easy access to all the amenities the city has to offer.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Bar are taxed at 15%, which is not much.

Short-term

You could also decide to rent short-term to bar patrons who are looking for a place to stay after a night out, as well as to travelers looking for a convenient place to stay while visiting the city.

If you decide to go with that option, look for properties in Old City and the surrounding neighborhoods such as Fener, Balat, and Eyup. These areas are popular tourist destinations and have a high demand for short-term rentals.

There are approximately 650 active Airbnb listings in Bar, reflecting a dynamic short-term rental market. The average daily rate is at $47.

You have the opportunity to generate some additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Bar can make around $400 per month. Also, the average occupancy rate is estimated at 33%.

Is it worth buying real estate in Bar then?

Certainly, when it comes to buying a property in Bar, Montenegro, it's essential to weigh the pros and cons carefully.

On the positive side, if you're looking for a long-term residence in a picturesque coastal town with a relaxed lifestyle, Bar could be an excellent choice. The cost of living is relatively low, property prices are competitive, and the potential for rental income and property appreciation exists. Moreover, the projected economic growth and stability in Montenegro provide a favorable backdrop for real estate investment.

However, it's vital to consider your specific situation. If you're planning a short-term stay, face language barriers, or are looking for quick speculative gains, buying may not be the best option. Additionally, be aware of foreign ownership restrictions, seasonal rental income fluctuations, and seismic risks in the area.

In essence, buying property in Bar can be a fantastic opportunity for those seeking a peaceful coastal lifestyle or long-term investment. Still, it's not a one-size-fits-all decision. It's essential to align your goals and circumstances with the advantages and challenges of Bar's property market. Conduct thorough research, possibly seek local expertise, and make an informed choice that suits your unique needs and aspirations.

Make sure you understand the real estate market in Bar

Don't rush into buying the wrong property in Montenegro. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.