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 remains Montenegro's most sought-after coastal property market in 2026, driven by strong tourism demand and limited beachfront supply.
In this article, we break down current housing prices in Budva, recent trends, and what to expect over the next decade.
We constantly update this blog post to give you the freshest data available on the Budva real estate market.
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.
Insights
- Budva property prices increased around 12% in 2025, outpacing Montenegro's national average by roughly 4 percentage points thanks to concentrated tourism demand in this coastal hotspot.
- The average price per square meter in Budva in 2026 sits near 2,900 euros, but beachfront apartments in the Old Town can exceed 4,000 euros per square meter.
- Studios and one-bedroom apartments in Budva deliver short-term rental yields of 8 to 12%, making them the top choice for investors seeking tourism-linked income.
- Rozino and Dubovica are emerging as Budva's fastest-growing neighborhoods, offering year-round livability at 20 to 30% less than seafront prices.
- The 237 million euro Budva bypass project will reduce city-center congestion, likely boosting property values in neighborhoods like Podkosljun and Lazi by improving accessibility.
- Montenegro's economy grew 3.2% in 2025 with low unemployment, supporting household purchasing power and property demand in Budva.
- Foreign investment in Montenegrin real estate reached 309 million euros in the first eight months of 2025, up 8% year-on-year, signaling sustained international appetite for Budva properties.
- The Central Bank of Montenegro raised its countercyclical capital buffer to 0.5% in 2025, with another increase to 1% planned for January 2026, signaling close monitoring of the real estate market.
What are the current property price trends in Budva as of 2026?
What is the average house price in Budva as of 2026?
As of early 2026, the average property price in Budva is approximately 175,000 euros (around 185,000 USD) for a typical 60 square meter apartment, which represents the most common type of residential purchase in this coastal town.
Looking at price per square meter, Budva properties average around 2,900 euros per square meter (roughly 3,100 USD or 3,100 euros per square meter), though this varies significantly between central seafront locations and inland neighborhoods.
For practical budgeting, the realistic price range that covers roughly 80% of property purchases in Budva falls between 100,000 and 400,000 euros (105,000 to 420,000 USD), with studios starting near the lower end and family-sized houses or sea-view apartments reaching the upper range.
How much have property prices increased in Budva over the past 12 months?
Property prices in Budva increased by approximately 12% over the 12 months from January 2025 to January 2026, reflecting continued strong demand in Montenegro's premier coastal resort town.
This growth was not uniform across all property types, with price increases ranging from around 8% for older resale apartments without parking to over 15% for new-build units with modern amenities and sea views.
The single most significant factor driving this price movement in Budva was the combination of sustained tourism demand and constrained supply of prime coastal land, which kept buyer competition high throughout 2025.
Which neighborhoods have the fastest rising property prices in Budva as of 2026?
As of early 2026, the top three neighborhoods with the fastest rising property prices in Budva are Rozino, Dubovica, and Lazi, all of which offer a combination of proximity to the beach and relative affordability compared to the seafront promenade.
Annual price growth in these areas has ranged from approximately 14% in Rozino to around 12% in Dubovica and 11% in Lazi, as buyers increasingly seek value outside the premium Old Town zone.
The main demand driver for these fast-growing neighborhoods is year-round livability, since they attract both rental investors looking for consistent occupancy and residents who want walkable beach access without paying peak seafront prices.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Budva.
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.
Which property types are increasing faster in value in Budva as of 2026?
As of early 2026, the ranking of property types by value appreciation in Budva places studios and one-bedroom apartments at the top, followed by new-build two-bedroom apartments, then sea-view villas, with older resale apartments and townhouses trailing behind.
Studios and compact one-bedroom apartments in Budva are appreciating at approximately 13 to 15% annually, making them the top performers in the current market.
The main reason these smaller units are outperforming other property types in Budva is their exceptional rentability, since they attract the largest pool of short-term tourists and offer the easiest resale to other investors seeking tourism income.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Budva?
- How much should you pay for a house in Budva?
- How much should you pay for an apartment in Budva?
- How much should you pay for a villa in Budva?
- How much should you pay for a studio in Budva?
What is driving property prices up or down in Budva as of 2026?
As of early 2026, the top three factors driving property prices in Budva are tourism-led rental demand, limited supply of prime coastal land, and infrastructure improvements like the planned Budva bypass project.
Among these, tourism-led rental demand exerts the strongest upward pressure on property prices in Budva, since the town attracts over half a million visitors annually and investors compete for units that can generate reliable short-term rental income.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Budva here.
Get fresh and reliable information about the market in Budva
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What is the property price forecast for Budva in 2026?
How much are property prices expected to increase in Budva in 2026?
As of early 2026, property prices in Budva are expected to increase by approximately 6% over the calendar year, reflecting a moderation from the stronger gains seen in 2025.
Forecasts from different analysts range from around 4% in more conservative scenarios to 8% if tourism has an exceptionally strong season and euro interest rates continue easing.
The main assumption underlying most price increase forecasts for Budva is that tourism demand will remain robust and that no major macroeconomic shock will disrupt buyer confidence or financing conditions.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Budva.
Which neighborhoods will see the highest price growth in Budva in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Budva are Rozino, Dubovica, Podkosljun, and Becici, all of which combine strong rental appeal with room for price appreciation.
Projected price growth for these top neighborhoods in Budva ranges from 7% to 10% over the year, outpacing the city-wide average thanks to infrastructure improvements and buyer interest in value alternatives to the seafront.
The primary catalyst driving expected growth in these neighborhoods is improved accessibility, as the Budva bypass project progresses and reduces the "traffic congestion discount" that previously held back inland areas.
One emerging neighborhood in Budva that could surprise with higher-than-expected growth is Boreti, which is attracting new-build developments and benefits from walkability to central amenities at prices still below established zones.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Budva.
What property types will appreciate the most in Budva in 2026?
As of early 2026, studios and one-bedroom apartments are expected to appreciate the most in Budva, followed closely by modern two-bedroom units with parking and elevator access.
The projected appreciation for top-performing studios and one-bedrooms in Budva is around 8 to 10% for the year, driven by their exceptional liquidity in both the rental and resale markets.
The main demand trend driving appreciation for this property type in Budva is the tourism-powered short-term rental market, where compact units with good locations can achieve occupancy rates above 70% during the peak season.
On the other hand, older resale apartments without parking or elevator access are expected to underperform in Budva because buyers increasingly discount the hassle factor, preferring modern amenities even at higher prices.
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.
How will interest rates affect property prices in Budva in 2026?
As of early 2026, the current interest rate environment is expected to have a moderately supportive effect on property prices in Budva, since the European Central Bank has eased rates from their 2023-2024 peaks and Montenegro uses the euro.
The ECB's deposit facility rate currently sits around 3%, with market expectations pointing toward gradual further easing if inflation continues to moderate toward the 2% target.
A 1% change in interest rates typically shifts buyer affordability by roughly 10% in Budva, meaning lower rates allow purchasers to stretch their budgets further, which tends to push property prices upward as competition increases.
You can also read our latest update about mortgage and interest rates in Montenegro.
What are the biggest risks for property prices in Budva in 2026?
As of early 2026, the top three biggest risks for property prices in Budva are a tourism demand shock, macroeconomic or fiscal stress in Montenegro, and potential oversupply if multiple new developments complete simultaneously.
Among these, a tourism demand shock has the highest probability of materializing in Budva, since the town's economy is unusually dependent on seasonal visitors and even a modest decline in arrivals can quickly soften rental yields and buyer sentiment.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Budva.
Is it a good time to buy a rental property in Budva in 2026?
As of early 2026, it is generally a favorable time to buy a rental property in Budva if you choose the right unit type and underwrite conservatively, since tourism demand remains strong and rental yields can reach 8 to 12% for well-located studios and one-bedrooms.
The strongest argument in favor of buying a rental property now in Budva is that supply constraints and sustained visitor arrivals keep occupancy rates high, while prices have not yet reached the levels seen in comparable Mediterranean destinations.
The strongest argument for waiting before buying a rental property in Budva is that prices have risen significantly over the past few years, and a potential tourism slowdown or oversupply from new developments could temporarily cool returns.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Budva.
You'll also find a dedicated document about this specific question in our pack about real estate 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.
Where will property prices be in 5 years in Budva?
What is the 5-year property price forecast for Budva as of 2026?
As of early 2026, cumulative property price growth in Budva over the next 5 years is expected to reach approximately 35%, bringing the average price per square meter from around 2,900 euros today to roughly 3,900 euros by 2031.
Forecasts range from around 25% in conservative scenarios that assume weaker tourism or tighter financing, to nearly 50% in optimistic scenarios where Montenegro's EU accession advances and the Budva bypass fully transforms accessibility.
This translates to a projected average annual appreciation rate of approximately 6% over the next 5 years in Budva, consistent with the town's structural tourism appeal and coastal scarcity.
The key assumption most forecasters rely on for their 5-year property price predictions in Budva is that tourism will remain the dominant economic driver and that no major geopolitical or financial shock will derail Montenegro's growth trajectory.
Which areas in Budva will have the best price growth over the next 5 years?
The top three areas in Budva expected to have the best price growth over the next 5 years are Rozino, Podkosljun, and Becici, all of which combine strong rental demand with infrastructure-linked upside.
Projected 5-year cumulative price growth for these top-performing areas in Budva ranges from 40% to 50%, outpacing the city-wide average as buyer preferences shift toward livable neighborhoods with good value.
This largely aligns with our shorter-term forecast, though the 5-year view gives more weight to infrastructure completion, since projects like the Budva bypass need several years to fully materialize and lift property values.
Dubovica stands out as a currently undervalued area in Budva with the best potential for outperformance over 5 years, since it offers year-round residential appeal at prices still meaningfully below the seafront premium zones.
What property type will give the best return in Budva over 5 years as of 2026?
As of early 2026, studios and compact one-bedroom apartments are expected to give the best total return over 5 years in Budva, combining solid appreciation with strong rental income potential.
The projected 5-year total return for these top-performing units in Budva is approximately 70 to 90%, factoring in both price appreciation of around 35% and cumulative rental income averaging 7 to 10% annually.
The main structural trend favoring this property type over the next 5 years in Budva is the continued dominance of short-term tourism rentals, since compact units are easiest to manage, fill quickly, and resell to other investors.
For buyers seeking the best balance of return and lower risk over 5 years in Budva, modern two-bedroom apartments with parking in neighborhoods like Rozino or Becici offer slightly lower yields but broader resale appeal to both investors and families.
How will new infrastructure projects affect property prices in Budva over 5 years?
The top three major infrastructure projects expected to impact property prices in Budva over the next 5 years are the 237 million euro Budva bypass, improvements to the Podgorica-Budva main road, and ongoing upgrades to Tivat Airport just 20 kilometers away.
Properties near completed infrastructure projects in Budva typically command a price premium of 10 to 20%, as better accessibility reduces commute times and improves quality of life.
The neighborhoods that will benefit most from these infrastructure developments in Budva are Podkosljun, Lazi, and the Lastva Grbaljska area, since the bypass will divert transit traffic away from these zones and reduce congestion-related discounts.
How will population growth and other factors impact property values in Budva in 5 years?
Budva's property market is less driven by traditional population growth and more by seasonal and lifestyle demand, though the municipality's resident base is expected to grow modestly at around 1 to 2% annually as remote workers and retirees settle in the area.
The demographic shift that will have the strongest influence on property demand in Budva is the rise of location-independent professionals and second-home buyers from Western Europe, who seek coastal lifestyle at prices below Spain, Italy, or Croatia.
International migration patterns are expected to continue boosting property values in Budva over 5 years, with buyers from Serbia, Russia, the UK, and Germany remaining active despite shifting geopolitical dynamics.
Studios, one-bedrooms, and modern two-bedroom apartments in walkable neighborhoods like Rozino and Becici will benefit most from these demographic trends in Budva, since they match the preferences of remote workers and lifestyle investors alike.
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.
What is the 10 year property price outlook in Budva?
What is the 10-year property price prediction for Budva as of 2026?
As of early 2026, cumulative property price growth in Budva over the next 10 years is expected to reach approximately 80%, bringing the average price per square meter from around 2,900 euros today to roughly 5,200 euros by 2036.
Forecasts range from around 50% in conservative scenarios that assume slower growth and periodic setbacks, to over 120% in optimistic scenarios where EU accession, infrastructure completion, and sustained tourism drive a prolonged boom.
This translates to a projected average annual appreciation rate of approximately 6% over the next 10 years in Budva, reflecting the town's structural advantages as Montenegro's premier coastal destination.
The biggest uncertainty factor in making 10-year property price predictions for Budva is the trajectory of Montenegro's EU membership process and how it affects investor confidence, regulatory frameworks, and access to European financing.
What long-term economic factors will shape property prices in Budva?
The top three long-term economic factors that will shape property prices in Budva over the next decade are tourism competitiveness and infrastructure quality, euro monetary policy and financing conditions, and Montenegro's progress toward EU membership.
Among these, tourism competitiveness is the factor that will have the most positive impact on property values in Budva, since the town's rental income potential underpins investor demand and any improvements in visitor experience directly lift property appeal.
The long-term economic factor that poses the greatest structural risk to property values in Budva is Montenegro's fiscal position and debt sustainability, since government instability or austerity measures could dampen confidence and slow infrastructure investment.
You'll also find a much more detailed analysis in our pack about real estate in Budva.
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 Q2 2025 Prices Report | Montenegro's official statistics office publishing standardized quarterly price data. | We used the Coastal Region price per square meter as the official anchor for Budva estimates. We then adjusted upward using market indices to reflect Budva's premium positioning. |
| MONSTAT Q3 2025 Release Page | The official release page for the newest quarter before January 2026. | We used it to confirm the latest national price level and direction into late 2025. We treated it as the last official print before our snapshot date. |
| MONSTAT 2024 Annual Prices Report | Official annual consolidation for clean year-over-year comparisons. | We used the 2024 Coastal Region price as the base for 12-month growth calculations. We cross-checked that regional splits were consistent with quarterly releases. |
| European Central Bank Key Rates | The primary source for euro area policy rates that influence mortgage pricing. | We used it to anchor the interest-rate environment affecting buyer affordability. We translated rate direction into typical impacts on budgets and price pressure. |
| World Bank Montenegro Factsheet | A major institution summarizing macro risks and trajectory for Montenegro. | We used it to frame the economic backdrop that matters for property demand. We reflected those factors in our risk and forecast scenarios. |
| IMF World Economic Outlook Oct 2025 | The IMF's flagship macro outlook used widely by investors. | We used it to anchor the global 2026 economic mood. We translated that into implications for foreign buyers and financing conditions. |
| Montenegro Government Budva Bypass | Official government announcement with cost and implementation details. | We used it as a concrete infrastructure catalyst that can change accessibility and prices. We connected it to which neighborhoods benefit most from decongestion. |
| MONSTAT Building Permits Q3 2025 | Official pipeline indicator for future supply pressure or scarcity. | We used it to judge whether supply is catching up or still constrained. We reflected supply tightness in our pricing outlook. |
| MONSTAT Tourist Arrivals 2024 | Official tourism volume data crucial for Budva's rental demand story. | We used it to support the tourism-led housing market narrative. We translated tourism pressure into short-let yields and buyer appetite. |
| Properstar Budva Listings | A large international portal that builds a price index from listing data. | We used it to estimate Budva's premium over the Coastal Region average. We treated it as directional and cross-checked against other sources. |
| Indomio Budva Listings | A major regional marketplace showing current asking prices across neighborhoods. | We used it to sanity-check price ranges by neighborhood and property type. We treated listings as a reality-check rather than definitive market prices. |
| Global Property Guide Montenegro | An independent research site providing price history and analysis. | We used it to validate coastal price ranges and growth rates. We cross-referenced their figures with official MONSTAT data. |
| IMF Article IV Montenegro 2025 | The IMF's official country consultation with detailed economic assessment. | We used it to understand Montenegro's macro vulnerabilities and growth outlook. We incorporated their risk analysis into our forecast scenarios. |
| Eurostat Housing Price Statistics | The EU's statistical office giving consistent definitions for price indices. | We used it to benchmark European price growth as context for foreign buyer behavior. We kept it as background rather than a direct Budva input. |
| Western Balkans Investment Framework | EU-funded technical documentation for the Budva bypass project. | We used it to understand the bypass project scope and timeline. We incorporated expected benefits like job creation and travel time reduction. |
| Emerging Europe Montenegro Analysis | Independent economic analysis covering Montenegro's development trajectory. | We used it to understand structural economic factors and investment trends. We incorporated their perspective on tourism and FDI dynamics. |
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If you want to go deeper, you can read the following: