Authored by the expert who managed and guided the team behind the Montenegro Property Pack
Yes, the analysis of Budva's property market is included in our pack
Budva is Montenegro's most popular coastal destination and one of the Balkans' busiest tourist hubs, which means property demand here is driven by factors you simply won't find in other markets.
In this guide, we break down whether January 2026 is the right time to buy in Budva, using fresh data on housing prices, affordability, rental yields, and local market signals.
We constantly update this blog post to reflect the latest Budva real estate trends and official statistics.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Budva.
So, is now a good time?
As of early 2026, we would say it's "rather yes" to buy property in Budva, but only if you're selective about what you buy and ready to hold for at least five years.
The strongest signal supporting a purchase is that Budva's tourism demand remains exceptionally strong, with visitor numbers now exceeding pre-pandemic levels and driving consistent rental income for well-located properties.
Another key signal is that official coastal property prices in Montenegro rose over 23% year-on-year to Q3 2025, showing real momentum, while mortgage rates have dropped to around 4.6%, making financing more accessible than two years ago.
Supporting factors include the planned €237 million Budva bypass, Montenegro's steady progress toward EU membership, and the limited supply of buildable coastal land, all of which support long-term value.
For best results, focus on year-round livable apartments (1 to 2 bedrooms) in areas like Stari Grad, Slovenska Plaza, or Becici, as these rent easily in both peak and off-season, and if you can afford to hold for 5 to 10 years, buying now is more likely to be rewarded than waiting.
This is not financial or investment advice, as we don't know your personal situation, so please do your own research and consult a professional before making any decisions.
Is it smart to buy now in Budva, or should I wait as of 2026?
Do real estate prices look too high in Budva as of 2026?
As of early 2026, property prices in Budva appear stretched relative to local incomes, with typical apartments costing around €2,800 to €3,300 per square meter, which puts a modest 55 square meter flat at roughly €165,000, requiring over 13 years of an average local salary to afford.
One clear signal that Budva prices are elevated comes from time-on-market data: well-priced apartments in prime locations still sell within 2 to 6 weeks, but overpriced or poorly located units now sit for 6 to 12 months, showing buyers are becoming pickier and less willing to overpay.
Another indicator is the share of listings requiring price reductions in Budva, which has been growing for non-prime stock, suggesting that seller expectations have run ahead of what the market will actually pay, especially outside the most desirable neighborhoods and building types.
You can also read our latest update regarding the housing prices in Budva.
Does a property price drop look likely in Budva as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Budva over the next 12 months appears low to medium, mainly because tourism demand remains strong and there's no sign of a credit crunch or sudden oversupply hitting the market.
Looking at plausible scenarios, we estimate that Budva property prices could move anywhere from a 5% to 10% nominal decline (if Europe-wide demand softens and banks tighten lending) to a 5% to 12% increase (if tourism stays robust and infrastructure projects boost desirability).
The single most important macro factor that could trigger a price drop in Budva is a tightening of mortgage credit conditions, since Montenegro's central bank has already raised its countercyclical capital buffer to 1% from January 2026, which may make banks slightly more cautious about housing loans.
However, this credit tightening scenario is only moderately likely in the near term because mortgage rates in Montenegro have actually been falling (now around 4.6%) and the central bank's stance is precautionary rather than aggressive, so any price correction would likely be gradual rather than sudden.
Finally, please note that we cover the price trends for next year in our pack about the property market in Budva.
Could property prices jump again in Budva as of 2026?
As of early 2026, the likelihood of a renewed price surge in Budva is medium, since the key ingredients (strong tourism, limited coastal land, and EU-accession optimism) are still in place, but prices have already risen sharply and affordability is stretched.
In an upside scenario, we estimate Budva property prices could rise by 5% to 12% over the next 12 months, with prime sea-view apartments and new builds in sought-after areas likely outperforming the broader market.
The single biggest demand-side trigger that could drive prices to jump again in Budva is a better-than-expected tourism season combined with continued foreign investor interest, since Budva attracts over half a million visitors annually and tourism directly fuels rental demand and buyer confidence.
Please also note that we regularly publish and update real estate price forecasts for Budva here.
Are we in a buyer or a seller market in Budva as of 2026?
As of early 2026, Budva is best described as a two-speed market: it leans seller-friendly for well-priced, liquid properties (like 1 to 2 bedroom apartments near the sea with clear titles) but tips toward buyers for everything else, including overpriced listings and units with poor winter livability.
While Budva doesn't publish an official months-of-inventory figure, our estimate is that prime, correctly priced apartments move within 1 to 3 months (suggesting tight supply), whereas less desirable stock can sit for 6 to 12 months, which is a clear sign that sellers of "average" properties have much less leverage.
The growing share of price reductions on non-prime Budva listings (visible across major portals) signals that seller leverage has weakened outside the best micro-locations, meaning that if you're patient and targeting non-prime stock, you have real negotiating room in early 2026.
We have made this infographic to give you a quick and clear snapshot of the property market in Montenegro. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Budva as of 2026?
Are homes overpriced versus rents or versus incomes in Budva as of 2026?
As of early 2026, homes in Budva appear moderately overpriced when measured against local incomes, but look closer to fair value when compared to rental yields, especially for properties that can generate strong short-term rental income during tourist season.
The price-to-rent ratio in Budva sits at roughly 19 to 20 for a typical apartment (meaning it would take about 20 years of rent to cover the purchase price), which is above the 15 to 17 range often considered balanced, but not dramatically out of line for a tourism-driven coastal market.
The price-to-income multiple in Budva is more concerning: a typical 55 square meter apartment at €165,000 costs about 13.5 times the average annual local salary, well above the 5 to 6 times threshold that usually signals good affordability, though this ratio matters less if you're buying with foreign-earned income or as a second home.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Budva.
Are home prices above the long-term average in Budva as of 2026?
As of early 2026, Budva property prices are clearly above their recent long-term average, with current levels sitting at or near the top of the 2023 to 2025 price range according to MONSTAT's official coastal housing data.
Looking at momentum, Budva-area prices have risen by roughly 20% to 25% over the past 12 to 18 months (official coastal new-build prices jumped 23.2% year-on-year to Q3 2025), which is much faster than the typical long-run pace of 3% to 7% annual appreciation seen in the years before 2023.
In inflation-adjusted (real) terms, Budva prices have still gained significant ground because consumer price inflation in Montenegro has moderated (around 3% to 4% in late 2025), meaning most of the nominal price increase represents genuine real-terms appreciation, bringing current values close to or above the prior cycle peak.
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What local changes could move prices in Budva as of 2026?
Are big infrastructure projects coming to Budva as of 2026?
As of early 2026, the biggest infrastructure project set to impact Budva property prices is the planned €237 million Budva bypass, which aims to relieve the chronic traffic congestion that frustrates residents and visitors alike during peak tourist season.
The bypass is in the planning and approval phase as of early 2026, with construction timelines still to be finalized, but the government has publicly committed to the project as part of broader coastal connectivity improvements, meaning it could break ground within the next few years and be completed within this decade.
For the latest updates on the local projects, you can read our property market analysis about Budva here.
Are zoning or building rules changing in Budva as of 2026?
The most important zoning and building rule change affecting Budva in 2026 is Montenegro's new construction-law framework, adopted in 2025 under the Law on the Construction of Buildings (Official Gazette No. 19/2025), which decentralizes some permitting authority and updates the rules governing new developments.
As of early 2026, this regulatory shift could have mixed effects on Budva prices: in the short term, it may slow some projects as developers navigate updated requirements, but over the longer term it could either increase supply (if permitting becomes smoother) or limit it (if stricter standards apply), with the net price impact still uncertain.
The areas most likely to be affected by these rule changes in Budva are the hillside and peripheral zones where new construction is still feasible, since the prime coastal strip has limited buildable land remaining and is already heavily developed.
Are foreign-buyer or mortgage rules changing in Budva as of 2026?
As of early 2026, the direction of mortgage and buyer-related rule changes in Budva is cautiously tightening rather than loosening, as Montenegro's central bank has raised its countercyclical capital buffer to 1% from January 2026, which could make banks slightly more conservative about housing loans, though no outright restrictions on foreign buyers are in place.
The most relevant recent change for transaction costs is Montenegro's progressive real estate transfer tax introduced in 2024, which affects higher-value purchases more than entry-level ones, so buyers of pricier Budva properties should factor this into their deal math.
On the mortgage side, the most likely near-term development is continued monitoring of loan-to-value practices and affordability assessments by the central bank, though average mortgage rates have actually fallen to around 4.6% for new housing loans in late 2025, making financing more accessible than it was a year or two ago.
You can also read our latest update about mortgage and interest rates in Montenegro.
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.
Will it be easy to find tenants in Budva as of 2026?
Is the renter pool growing faster than new supply in Budva as of 2026?
As of early 2026, renter demand in Budva appears to be roughly keeping pace with new rental supply for quality units, though the market splits sharply between year-round rentals (where demand is steady from locals, expats, and remote workers) and seasonal rentals (where tourism drives intense summer demand).
The clearest signal of renter-demand growth in Budva comes from tourism numbers: visitor arrivals and overnight stays have exceeded pre-pandemic levels and continued growing through 2025, which directly translates into short-term rental bookings and supports demand for furnished apartments year-round.
On the supply side, new residential completions in Budva continue at a steady pace (building permits show ongoing activity), but supply is not flooding the market fast enough to crash rents, especially for well-located units that work in both peak and shoulder seasons.
Are days-on-market for rentals falling in Budva as of 2026?
As of early 2026, well-priced long-term rentals in Budva typically find tenants within 2 to 6 weeks, and this timeframe has remained stable or slightly tightened in the best locations, reflecting continued demand from expats, remote workers, and local professionals.
There's a significant gap between "best areas" and weaker locations in Budva: apartments in Stari Grad (Old Town), Slovenska Plaza, Gospostina, and Becici rent much faster (often under 3 weeks) than units in peripheral areas or buildings with poor winter conditions, which can sit for 2 to 4 months or longer.
One common reason days-on-market falls in Budva's best areas is seasonal undersupply: many owners keep units off the long-term market to preserve their option for lucrative summer short-term rentals, which means the pool of genuine year-round rentals is smaller than it looks, tightening competition for tenants seeking 12-month leases.
Are vacancies dropping in the best areas of Budva as of 2026?
As of early 2026, vacancy rates in Budva's best-performing rental areas, including Stari Grad (Old Town), Slovenska Plaza, Becici, Rafailovici, and the Sveti Stefan corridor, appear to be stable or edging lower, mainly because these neighborhoods attract tenants in both tourist season and the quieter winter months.
In these prime areas, vacancy is structurally lower than in the overall Budva market because demand comes from multiple sources: short-term tourists in summer, long-term expats and remote workers year-round, and seasonal hospitality staff who need housing from April to October.
A practical sign that Budva's best areas are tightening first is the emergence of "waiting lists" for well-maintained, furnished apartments with parking and modern heating, something almost unheard of a few years ago, where landlords now often have prospective tenants lined up before a current lease even ends.
By the way, we've written a blog article detailing what are the current rent levels in Budva.
Buying real estate in Budva can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Budva as of 2026?
Is for-sale inventory shrinking in Budva as of 2026?
As of early 2026, for-sale inventory in Budva does not appear to be clearly shrinking in total volume, with estimates suggesting over 2,000 apartment listings remain active across the market, but "effective inventory" (properties buyers actually want) can feel tight because demand concentrates on a narrow set of desirable attributes.
It's difficult to pin down an exact months-of-supply figure for Budva since no official MLS system exists, but our estimate is that prime stock (well-priced, well-located, clean-title apartments) would clear in roughly 2 to 4 months, while less desirable inventory could take 9 to 12 months or more, suggesting a split market rather than an outright shortage.
The main reason "effective inventory" feels scarce in Budva is that buyers increasingly prioritize specific features, such as parking, dry and insulated buildings, modern finishes, and walkability to the sea, and properties lacking these attributes struggle to attract offers even if overall listing counts remain high.
Are homes selling faster in Budva as of 2026?
As of early 2026, correctly priced prime apartments in Budva typically sell within 1 to 3 months, while non-prime or overpriced stock takes 3 to 9 months or longer, and this pattern has remained fairly stable over the past year rather than clearly speeding up.
Looking at year-over-year changes, selling times in Budva appear roughly flat to slightly longer for average properties, mainly because affordability pressure (high prices versus local incomes) has made buyers more selective, even as demand from foreign buyers and investors remains solid.
Are new listings slowing down in Budva as of 2026?
As of early 2026, we do not have strong evidence that new for-sale listings in Budva are slowing dramatically, since price levels remain elevated and confident sellers continue testing the market, though we acknowledge that no official listings feed exists to measure this precisely.
Budva's typical seasonal pattern sees new listings increase as spring approaches (when sellers want to capture the summer buyer wave), and current listing levels appear broadly consistent with this pattern rather than unusually low, suggesting no major supply freeze.
If new listings were slowing, the most plausible reason in Budva would be seller caution: owners who bought at lower prices may be waiting for even higher offers, and those with rental income have less urgency to sell, but this dynamic has not yet translated into a dramatic listing shortage.
Is new construction failing to keep up in Budva as of 2026?
As of early 2026, new construction in Budva is not clearly "failing to keep up" with demand, but it's also not flooding the market, since building activity continues at a steady pace while coastal land constraints and regulatory changes limit how fast supply can grow.
MONSTAT's Q3 2025 building permits data shows ongoing construction activity across Montenegro's coastal region, with new projects and planned dwellings in the pipeline, but nothing suggesting a massive wave that would overwhelm demand and push prices down sharply.
The single biggest bottleneck limiting new construction in Budva is the scarcity of buildable coastal land in prime locations, since most of the first and second lines from the sea are already developed, forcing new projects to hillside or peripheral sites that may not command the same prices or rental appeal.
We made this infographic to show you how property prices in Montenegro compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Budva as of 2026?
Is resale liquidity strong enough in Budva as of 2026?
As of early 2026, resale liquidity in Budva is reasonably strong by Montenegrin standards, meaning that a well-priced property in a good location should find a buyer within a few months, though this assumes realistic pricing and attractive features.
Our estimate for median days-on-market for resale homes in Budva is roughly 2 to 4 months for prime stock, which compares favorably to the 3-month benchmark often considered "healthy liquidity" in comparable markets, though less desirable properties can take 6 to 12 months.
The single characteristic that most improves resale liquidity in Budva is year-round livability: apartments that are dry, well-insulated, have parking, and work for both tourist rentals and permanent living attract both investors and end-users, making them easier to sell at any point in the cycle.
Is selling time getting longer in Budva as of 2026?
As of early 2026, selling times in Budva appear stable to slightly longer compared to a year ago for average properties, mainly because buyer affordability has become stretched and there's more new-build competition across Montenegro's coast.
Our current estimate is that median days-on-market in Budva ranges from roughly 6 to 12 weeks for well-priced prime properties up to 6 to 9 months for overpriced or less desirable stock, meaning the spread between "fast sales" and "slow sales" has widened.
One clear reason selling time can lengthen in Budva is the gap between seller expectations and buyer purchasing power: local wages have risen (€1,018/month as of November 2025), but not nearly fast enough to keep pace with property prices, so sellers targeting local buyers may need to wait longer or adjust prices downward.
Is it realistic to exit with profit in Budva as of 2026?
As of early 2026, the likelihood of selling with a profit in Budva is medium to high if you buy wisely and hold for at least 5 years, since the market has real fundamentals (tourism, EU-accession tailwinds, limited coastal land) that support long-term appreciation.
Our estimate is that a minimum holding period of 5 to 7 years is typically needed to absorb transaction costs and benefit from enough price appreciation to exit profitably in Budva, though shorter holds can work if you buy well below market or in a micro-location that re-rates quickly.
Total round-trip transaction costs in Budva (including buyer's transfer tax at 3% for most properties, notary and registration fees, potential agent commissions, and legal costs) typically run 5% to 8% of the property value, or roughly €8,000 to €13,000 on a €165,000 apartment (Montenegro uses the euro, so €1 equals $1.04 at current rates).
The single factor that most increases profit odds in Budva is buying in a high-demand micro-location (like Stari Grad, Becici, or Slovenska Plaza) at a fair price, since these areas have proven resilience, better rental yields, and stronger buyer interest when it's time to sell.
Get the full checklist for your due diligence in Budva
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Budva, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| MONSTAT - Prices of dwellings (Q3 2025) | Montenegro's official statistics office publishes contract-based new-build prices. | We used this as our primary benchmark for coastal property prices. We adjusted the €2,458/m² coastal average upward to estimate Budva-specific values based on its tourism premium. |
| MONSTAT - Average earnings (Nov 2025) | Official wage data is essential for calculating affordability ratios. | We used the €1,018/month net wage to calculate price-to-income multiples. We anchored all our affordability analysis to this official figure rather than guesses. |
| MONSTAT - Tourism arrivals (Nov 2025) | Official tourism data is the best demand proxy for Budva's property market. | We used tourism strength as a leading indicator for rental demand and buyer confidence. We treated strong visitor numbers as validation of Budva's investment case. |
| MONSTAT - Building permits (Q3 2025) | Official permit data shows the construction pipeline and regulatory changes. | We used this to assess supply pressure and identify the 2025 construction-law change. We interpreted permits as a forward-looking indicator for inventory levels. |
| MONSTAT - Consumer Price Index (Nov 2025) | Official inflation data is needed to separate real from nominal price gains. | We used CPI to calculate inflation-adjusted property price changes. We interpreted whether recent appreciation represents genuine real-terms growth. |
| CBCG - Interest rate statistics | Central bank data is the authoritative source for mortgage rates. | We used this to anchor mortgage-rate assumptions (around 4.6% for new housing loans). We assessed how financing costs affect buyer affordability and demand. |
| CBCG - Governor's Report (Jan 2025) | Official central-bank narrative explains risks and policy direction. | We used this to understand credit conditions and the countercyclical buffer increase. We interpreted CBCG's stance as a signal for lending caution into 2026. |
| CBCG - Bank Lending Survey (Q1 2025) | Survey data shows banks' credit standards and demand directly from the regulator. | We used this to assess whether mortgage credit is tightening or loosening. We treated lending conditions as a leading indicator for property price moves. |
| IMF - Montenegro 2025 Article IV Report | The IMF provides authoritative macro risk and sustainability analysis. | We used this to frame crash-risk scenarios and growth outlook. We treated the IMF's assessment as the sober baseline behind local market optimism. |
| World Bank - Montenegro country page | World Bank analysis is authoritative on growth and structural vulnerabilities. | We used this to cross-check growth outlook and tourism reliance. We triangulated World Bank views against IMF analysis for a balanced macro picture. |
| Government of Montenegro - Budva bypass | Official government announcement confirms a concrete infrastructure project. | We used this as a place-specific catalyst for long-term desirability. We assessed how improved accessibility could affect property values over time. |
| Global Property Guide - Montenegro analysis | Respected independent source for international property market comparisons. | We used this for rental yield benchmarks (5.4% to 6.75% in Budva) and historical context. We cross-referenced their data with official MONSTAT figures. |
| Law Office Vujacic - Tax law summary | Legal experts provide accurate interpretations of Montenegro's tax changes. | We used this to confirm the progressive transfer tax introduced in 2024. We factored transaction costs into our profit and affordability calculations. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Montenegro. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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- What are the best areas to buy a property in property in Budva?