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Yes, the analysis of Budva's property market is included in our pack
Thinking about buying a 3-bedroom apartment in the Old Town of Budva? It’s a charming area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Bečići or Petrovac where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Montenegro Property Pack.
Will property prices increase in Budva in 2025?
Yes, property prices in Budva are expected to rise in 2025, driven by a combination of increasing tourism and limited real estate availability.
Backed by our fresh, in-depth market analysis, we’re confident that Budva remains an attractive destination for both domestic and international investors.
While there are some economic challenges like inflation and potential regulatory changes, the main drivers behind Budva’s price growth remain strong.
The demand for properties, especially in prime coastal areas, continues to outpace supply, making significant price drops unlikely. Additionally, Budva's appeal as a tourist hotspot and its scenic beauty keep attracting buyers from around the world.
Signals pointing to a property price increase in Budva
Here are some factors suggesting prices could increase:
The ongoing development of luxury resorts and hotels in Budva is expected to boost the area's appeal, attracting more affluent buyers and investors, which could drive up property prices.
Budva's reputation as a premier tourist destination in Montenegro continues to grow, leading to increased demand for vacation homes and rental properties, which is likely to push property prices higher.
The limited availability of land for new developments in Budva, particularly in desirable coastal areas, is expected to constrain supply, thereby supporting higher property prices.
Government initiatives to improve infrastructure, such as road and public transport enhancements, are likely to make Budva more accessible and attractive, potentially increasing property values.
The trend of remote working is encouraging more international buyers to consider Budva as a location for both living and working, increasing demand for residential properties.
The Montenegrin government's favorable tax policies for foreign investors are expected to continue, making Budva an attractive option for international property buyers.
The anticipated growth in Montenegro's economy, driven by tourism and foreign investment, is likely to have a positive impact on the real estate market in Budva.
Signals pointing to a property price decrease in Budva
Here are some factors suggesting prices could fall:
Potential regulatory changes in Montenegro's property market, such as increased taxes or restrictions on foreign ownership, could dampen investor enthusiasm and impact property prices.
Economic uncertainties, including inflation and fluctuating currency exchange rates, could affect the purchasing power of international buyers, potentially reducing demand.
Environmental concerns, such as coastal erosion or stricter building regulations to protect natural landscapes, could limit new developments and affect property values negatively.
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If property prices go up in Budva, how much would they increase by?
If real estate prices in Budva were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Budva appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, tourism trends, and property type.
It means that, if you spot a charming 2-bedroom apartment with a sea view in the Old Town for 200,000 euros today, don't be surprised if it's priced between 206,000 and 214,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Budva real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Seaside Apartment (60 sqm / 646 sqft) | €150,000 | €154,500 | €157,500 | €160,500 |
| Modern Condo (75 sqm / 807 sqft) | €180,000 | €185,400 | €189,000 | €192,600 |
| Luxury Villa (100 sqm / 1,076 sqft) | €500,000 | €515,000 | €525,000 | €535,000 |
| Studio (30 sqm / 323 sqft) | €80,000 | €82,400 | €84,000 | €85,600 |
| Loft (80 sqm / 861 sqft) | €220,000 | €226,600 | €231,000 | €235,400 |
| Townhouse (150 sqm / 1,615 sqft) | €400,000 | €412,000 | €420,000 | €428,000 |
| Investment Property (50 sqm / 538 sqft) | €120,000 | €123,600 | €126,000 | €128,400 |
Everything you need to know is included in our Property Pack for Budva
If real estate prices go up in Budva, which areas are likely to see the biggest increases?
Today, people who want to move to Budva are looking for stunning coastal views and modern amenities, which Old Town (Stari Grad) delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more vibrant, lively neighborhoods, and Rafailovići has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Budva market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Old Town (Stari Grad) | High | Recent restoration projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Becici | High | Expected rise due to limited beachfront properties, upcoming luxury hotel developments, and growing demand for prime coastal real estate. |
| Rafailovići | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Petrovac | Medium | The shift towards more tranquil living spaces is driving demand for residential properties near serene beaches, combined with new mixed-use developments. |
| Pržno | Medium-High | Eco-friendly urban projects and recent construction of new resorts and parks are increasing its attractiveness for families, pushing prices upward. |
| Sveti Stefan | Medium | Investment in local infrastructure, such as the extension of road networks and renovation of historic areas, is boosting long-term value. |
| Jaz Beach | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Budva Riviera | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Reževići | Medium-High | Its proximity to Budva, along with new residential developments, makes it increasingly attractive to professionals seeking more space. |
| Kamenovo | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Miločer | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Perazica Do | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this scenic, coastal location. |
-The best areas to buy a property in Budva
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Budva?
In 2025, Budva real estate trends focus on luxury waterfront properties, modern villas with sea views, eco-friendly developments, and properties with proximity to cultural and historical sites—all driving higher demand and prices. Here is a summary.
- Luxury Waterfront Properties:
Budva's stunning Adriatic coastline makes waterfront properties highly sought after. These homes offer breathtaking views and direct access to the sea, appealing to international buyers and investors looking for premium real estate.
- Modern Villas with Sea Views:
There is a growing demand for modern villas that offer panoramic sea views. These properties cater to affluent buyers seeking privacy and luxury, making them a valuable investment in 2025.
- Eco-Friendly Developments:
With increasing awareness of environmental issues, eco-friendly developments in Budva are gaining popularity. Properties with sustainable features and low environmental impact are attracting buyers focused on green living.
- Properties Near Cultural and Historical Sites:
Budva's rich history and cultural heritage make properties near historical sites highly desirable. Proximity to attractions like the Old Town enhances property value, appealing to both tourists and investors.
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