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
As we reach mid-2025, Budva's property market continues to show remarkable strength, with prices reaching historic highs across all property segments.
Property prices in Budva have surged by an impressive 49% year-on-year as of June 2025, making it one of the fastest-growing real estate markets in the Adriatic region. This rapid appreciation has captured the attention of both local and international investors, who are increasingly viewing Budva as a prime investment destination with significant potential for further growth.
If you want to go deeper, you can check our pack of documents related to the real estate market in Montenegro, based on reliable facts and data, not opinions or rumors.
Property prices in Budva are experiencing exceptional growth, with coastal properties increasing by 49% year-on-year and forecasts suggesting an additional 3-7% rise through 2025.
The average price per square meter now ranges from €1,700 to €3,500 for standard apartments, while luxury properties command €3,500 to €6,000 per square meter, with prime waterfront villas reaching up to €10,000 per square meter.
| Property Type | Price Range per m² | Growth Past Year | 5-Year Outlook |
|---|---|---|---|
| Standard Apartments | €1,700–€3,500 | +49% | +3-7% annually |
| Luxury Apartments | €3,500–€6,000 | High | Strong growth expected |
| Villas/Beachfront | €3,000–€10,000 | Very High | Premium appreciation |
| New Developments | €3,000 (avg) | High | Continued demand |
| Older Properties | €1,700–€2,500 | Moderate | Steady growth |
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.
What are the current property prices per square meter in Budva as of June 2025?
Budva's property market shows significant price variation depending on location, property type, and quality.
Standard apartments in Budva currently range from €1,700 to €3,500 per square meter, with city center properties starting at around €2,500 per square meter. More affordable options can be found further from the coast, starting at €1,700 per square meter. These prices represent a substantial increase from previous years and reflect the strong demand for residential properties in this coastal city.
Luxury apartments command significantly higher prices, ranging from €3,500 to €6,000 per square meter. These premium properties typically feature modern amenities, superior construction quality, and often include stunning sea views or prime locations within walking distance of the beach. The luxury segment has shown particularly strong growth, driven by international buyers seeking high-end vacation homes or investment properties.
Villas and waterfront homes represent the pinnacle of Budva's real estate market, with prices ranging from €3,000 to €10,000 per square meter. Prime locations such as Sveti Stefan and Przno command the highest prices, particularly for properties with direct beach access or panoramic sea views. These exclusive properties appeal to ultra-high-net-worth individuals and have shown exceptional appreciation rates.
New developments in Budva average €3,000 per square meter, while finished houses average €2,800 per square meter. These modern properties attract buyers looking for contemporary design, energy efficiency, and the latest amenities, making them particularly popular among investors focused on rental income potential.
How much have property prices increased in Budva over the past 12 months?
The past year has witnessed extraordinary growth in Budva's property market.
Property prices in the coastal region, including Budva, have risen by a remarkable 49.1% year-on-year as of Q2 2024. This represents one of the highest annual growth rates seen in the Adriatic region and significantly outpaces most other European coastal markets. The surge has been driven by multiple factors including increased foreign investment, limited supply, and growing tourism numbers.
Looking ahead to the remainder of 2025, market analysts project that prices will continue to rise by an additional 3-7%. While this represents a moderation from the explosive growth of the past year, it still indicates a healthy and growing market. The sustained demand from both international buyers and domestic investors suggests that the market fundamentals remain strong.
The rapid price growth has been particularly pronounced in prime coastal areas and luxury segments. Properties with sea views or in prestigious developments have seen even steeper appreciation, with some premium locations recording price increases exceeding 50%. This trend reflects the growing appetite for high-quality real estate in Montenegro's most desirable locations.
Market experts attribute this exceptional growth to several factors, including Montenegro's progress toward EU accession, improved infrastructure, and the country's growing reputation as a tourist destination. The introduction of new luxury developments and the modernization of existing properties have also contributed to the overall price appreciation.
It's something we develop in our Montenegro property pack.
Which neighborhoods in Budva are experiencing the fastest price increases?
Not all areas of Budva are experiencing equal price growth, with certain neighborhoods showing particularly strong appreciation.
Prime and luxury zones are leading the price growth, with Budva Center, Old Town, Sveti Stefan, Przno, and waterfront districts showing the highest appreciation rates. These areas combine historical charm, stunning views, and proximity to amenities, making them highly sought after by both investors and end-users. The limited supply of properties in these prestigious locations has created intense competition among buyers.
Emerging neighborhoods such as Rafailovici, Becici, and Petrovac are attracting increased attention due to their relatively lower entry costs combined with strong growth potential. These areas offer excellent value for money while still providing easy access to beaches and amenities. Investors are particularly interested in these neighborhoods as they see significant upside potential.
| Neighborhood | Price Range per m² | Growth Rate | Investment Appeal | Key Features |
|---|---|---|---|---|
| Budva Center | €2,500-€3,500 | Very High | Premium location | Walking distance to all amenities |
| Old Town | €3,000-€4,500 | Very High | Historical value | Medieval charm, tourist hotspot |
| Sveti Stefan | €4,000-€10,000 | Exceptional | Ultra-luxury | Exclusive area, celebrity destination |
| Becici | €2,000-€3,000 | High | Growing area | Long beach, family-friendly |
| Rafailovici | €1,800-€2,800 | High | Value opportunity | Seaside promenade, quiet area |
Outskirt areas such as Lastva Grbaljska and Prijevor show slower price growth but offer opportunities for buyers seeking larger properties at lower prices. These areas appeal to those looking for more space and a quieter lifestyle while still maintaining reasonable access to Budva's center and beaches.
The variation in price growth across different neighborhoods reflects the diverse nature of Budva's real estate market, offering opportunities for different types of investors and buyers with varying budgets and investment strategies.
How do current Budva property prices compare to five years ago?
The transformation of Budva's property market over the past five years has been remarkable.
Average prices in Budva have increased by approximately 49% over the past five years, with coastal properties now averaging €2,107 per square meter compared to around €1,400-€1,500 per square meter in 2020. This represents a compound annual growth rate that significantly outpaces inflation and most other investment options, making real estate in Budva an attractive investment vehicle.
The luxury segment has experienced even steeper appreciation over this five-year period. High-end properties, particularly those with sea views or direct beach access, have seen price increases exceeding 60% in some cases. This exceptional growth in the premium market reflects the increasing number of wealthy international buyers discovering Montenegro as a destination.
Several factors have contributed to this sustained price growth over the past five years. Montenegro's progress toward EU membership, significant infrastructure improvements, and the country's growing international profile have all played crucial roles. The COVID-19 pandemic also unexpectedly boosted demand as people sought properties in less crowded, naturally beautiful locations.
When compared to 2020 prices, today's market represents both an opportunity and a challenge. While prices have risen substantially, many experts believe there is still room for growth, particularly when comparing Budva to similar coastal destinations in Croatia or Italy, where prices are significantly higher.
What's the price difference between new developments and older properties?
The Budva real estate market shows a clear price differentiation between new and older properties.
New developments command a significant premium, averaging €3,000 per square meter. These properties attract buyers with modern amenities, energy efficiency standards, contemporary design, and often come with property management services. The premium pricing reflects not only the quality of construction but also the peace of mind that comes with warranties and modern building standards.
Older properties typically range from €1,700 to €2,500 per square meter, offering more affordable entry points into the market. However, well-located or renovated historic properties, especially in the Old Town, can achieve prices comparable to or even exceeding new developments. The charm and character of these older properties appeal to a specific segment of buyers.
The price growth rates also differ between these segments. New developments and luxury properties are experiencing the fastest appreciation due to strong demand from investors and foreign buyers. These modern properties often offer better rental yields and require less maintenance, making them attractive for investment purposes.
Buyers choosing between new and older properties must consider various factors beyond just price. New developments offer modern conveniences and lower maintenance costs, while older properties may provide more character and potentially better locations. The renovation potential of older properties also presents opportunities for value creation.
It's something we develop in our Montenegro property pack.
Which property types in Budva are seeing the biggest price growth?
Different property types in Budva are experiencing varying levels of price appreciation.
Luxury villas and beachfront homes are experiencing the strongest price growth, often exceeding €6,000-€10,000 per square meter in elite areas. These properties represent the pinnacle of the market and continue to attract ultra-high-net-worth individuals from around the world. The scarcity of prime beachfront land ensures that these properties maintain their value and appreciation potential.
Modern apartments, especially those in new developments or with sea views, are also appreciating rapidly. These properties appeal to a broader range of buyers, from investors seeking rental income to individuals looking for vacation homes. The combination of modern amenities, manageable maintenance, and strong rental potential makes them particularly attractive.
Short-term rental properties are in exceptionally high demand, supporting sustained price increases. Apartments suitable for vacation rentals, particularly those in central locations or near the beach, command premium prices due to their income-generating potential. The growing tourism industry in Montenegro continues to drive demand for these properties.
Even smaller studios and one-bedroom apartments are seeing significant appreciation, particularly in prime locations. These properties offer affordable entry points for investors and generate attractive rental yields, making them popular among both domestic and international buyers.
What are the official property price forecasts for the next 5, 10, and 20 years?
Looking ahead, various official sources provide insights into Budva's property market trajectory.
Short-term forecasts for the next 5 years predict continued moderate growth of 3-7% annually, especially in prime coastal zones. This growth is expected to be driven by ongoing tourism development, infrastructure improvements, and Montenegro's progress toward EU membership. Unless there is a major external shock or significant oversupply, the market fundamentals suggest sustained appreciation.
Medium to long-term projections for 10-20 years are more cautious but still optimistic. While EU accession and ongoing tourism growth support long-term optimism, the Ministry of Finance warns of a gradual market correction as prices are currently considered moderately overvalued. However, any correction is expected to be gradual rather than abrupt, reducing the risk of a housing bubble.
| Time Period | Expected Annual Growth | Key Drivers | Risk Factors |
|---|---|---|---|
| 0-5 years | 3-7% | EU accession progress, tourism growth | Potential oversupply, global economy |
| 5-10 years | 2-5% | EU membership benefits, infrastructure | Market maturation, competition |
| 10-20 years | 2-4% | Economic development, regional growth | Market cycles, demographic changes |
Expert analysis suggests that while the explosive growth of recent years may moderate, Budva's property market will continue to offer attractive returns. The combination of natural beauty, improving infrastructure, and EU integration prospects provides a solid foundation for long-term value appreciation.
No sharp declines are expected in any forecast scenario. The gradual nature of any potential correction, combined with strong underlying demand from both tourists and residents, suggests that property values will remain resilient even in less favorable economic conditions.
How has Montenegro's Golden Passport program affected Budva property prices in 2024?
The revised Golden Passport program has had a notable impact on Budva's luxury property market.
The 2024 revision raised the minimum investment threshold, but demand from foreign investors remains strong, particularly for high-end and coastal properties. Despite the higher entry cost, wealthy individuals continue to view Montenegro's citizenship by investment program as attractive, especially given the country's EU candidate status and visa-free access to the Schengen area.
This sustained interest has led to increased demand for luxury properties and new developments in Budva. Properties that qualify for the investment program have seen particularly strong price growth, as they offer both lifestyle benefits and a path to European residency. The program has effectively created a floor for luxury property prices in prime locations.
The higher investment threshold has actually benefited the market by attracting more serious, long-term investors rather than speculators. These investors typically purchase higher-quality properties and are more likely to contribute to the local economy through additional investments and spending.
Real estate professionals report that the Golden Passport program continues to be a significant driver of demand in the €250,000+ property segment, with many buyers viewing their purchase as both a lifestyle investment and a strategic move for international mobility.
What impact are EU pre-accession reforms having on property values?
Montenegro's progress toward EU membership is significantly influencing property values in Budva.
The 2025 EU pre-accession reforms have improved legal transparency, infrastructure standards, and investment security, making Montenegro more attractive to foreign buyers. These improvements address previous concerns about property rights and legal processes, giving investors greater confidence in the market. The reforms have particularly benefited the real estate sector through clearer ownership structures and more efficient administrative processes.
Anticipation of EU membership has historically led to rising property values in candidate countries, and Montenegro is following this pattern. Investors are positioning themselves ahead of formal EU accession, expecting that membership will bring increased demand and higher prices. The precedent set by other Eastern European countries suggests property values could see significant appreciation upon EU entry.
Infrastructure improvements mandated by EU standards are already enhancing property values. Better roads, utilities, and public services make properties more attractive and functional. The planned improvements to transportation links, including potential new airports and highway connections, are expected to further boost accessibility and property values.
The reforms have also attracted more institutional investors and developers, leading to higher-quality projects and more professional property management. This professionalization of the market benefits all stakeholders and contributes to sustainable price growth.
It's something we develop in our Montenegro property pack.
How strong is demand from foreign investors and digital nomads?
International buyers are playing an increasingly important role in Budva's property market.
Budva remains one of the most attractive destinations for international buyers, digital nomads, and investors, drawn by lifestyle benefits, rental yields of 5-10%, and the prospect of EU membership. The combination of natural beauty, Mediterranean climate, and relatively affordable prices compared to other European coastal destinations creates a compelling value proposition.
Digital nomads, in particular, have emerged as a significant market segment. Montenegro's digital nomad visa program, combined with good internet infrastructure and an attractive lifestyle, has led to increased demand for both rental and purchase properties. These buyers often seek modern apartments with good workspace facilities and proximity to cafes and co-working spaces.
The rental market benefits from strong demand for both short-term vacation rentals and long-term leases. Modern apartments in city center locations are particularly sought after, with many investors reporting occupancy rates exceeding 70% during the tourist season. This robust rental market supports property values and provides investors with attractive yields.
Foreign investment in Budva's real estate has remained resilient despite global economic uncertainties. Buyers from Russia, Turkey, Western Europe, and increasingly from the Middle East continue to view Budva as an attractive investment destination. The diversity of buyer nationalities provides stability to the market.
How do Budva property prices compare to other Adriatic coastal cities?
Budva offers competitive value when compared to other Adriatic destinations.
When comparing Budva to other coastal cities, it emerges as an attractive middle-ground option. While more expensive than some Montenegrin towns like Bar, Budva remains significantly cheaper than established Croatian destinations like Dubrovnik or premium areas in Kotor. This positioning makes it attractive for investors seeking value with growth potential.
| City | Avg. Price per m² (City Centre) | Avg. Price per m² (Outside Centre) | Luxury Segment (max) | Investment Appeal |
|---|---|---|---|---|
| Budva | €2,500–€3,500 | €1,700–€2,800 | €10,000+ | High growth, strong yields |
| Kotor | €3,000–€5,000 | €2,000–€3,500 | €7,000+ | Premium prices, limited supply |
| Dubrovnik | €5,000 | €4,000 | €7,000+ | Established market, lower yields |
| Bar | €1,400–€3,000 | €1,200–€2,500 | €3,500 | Value entry, emerging market |
Budva's advantages include better value for money compared to Dubrovnik, more development opportunities than Kotor, and superior tourist infrastructure compared to Bar. The city strikes a balance between established appeal and growth potential, making it attractive for various investor profiles.
The rental yield comparison also favors Budva, with returns typically exceeding those in more expensive markets like Dubrovnik while offering more stability than emerging markets. This combination of reasonable entry prices and strong rental potential creates an attractive investment proposition.
What risks could lead to price stabilization or decline?
While the outlook remains positive, several risk factors warrant consideration.
The Ministry of Finance and Central Bank of Montenegro note that the market is moderately overvalued, with a gradual correction expected as prices adjust to fair market value. This doesn't necessarily mean a crash, but rather a period of slower growth or stabilization as the market finds equilibrium. Investors should factor this into their long-term planning.
Foreign investment dependency poses another risk, as price growth has been largely driven by international buyers. Any significant drop in foreign direct investment or tourism could slow or potentially reverse price gains. Geopolitical tensions, global economic downturns, or changes in visa policies could impact foreign buyer sentiment.
Supply considerations also play a role in future price movements. Ongoing construction and new developments could lead to localized oversupply, especially if demand slows. Several large-scale projects are in various stages of development, and their completion could temporarily increase supply beyond demand in certain market segments.
Other risk factors include potential regulatory changes affecting foreign ownership, environmental concerns limiting coastal development, global economic uncertainties impacting buyer confidence, and competition from other emerging Mediterranean destinations. However, these risks are balanced by strong fundamental demand and Montenegro's strategic advantages.
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Conclusion
Yes, property prices in Budva are going up significantly, with coastal properties experiencing a remarkable 49% year-on-year increase as of June 2025. The market shows strong momentum across all segments, from affordable apartments starting at €1,700 per square meter to luxury waterfront villas exceeding €10,000 per square meter. Foreign investment, EU accession progress, and robust tourism growth continue to drive demand, while limited supply in prime locations supports price appreciation. Although authorities warn of moderate overvaluation and predict a gradual correction, forecasts suggest continued growth of 3-7% annually over the next five years. The combination of lifestyle appeal, investment potential, and competitive pricing compared to other Adriatic destinations makes Budva's property market attractive for both investors and end-users.
Based on current market dynamics, strong demand fundamentals, and positive economic indicators, the answer is clear: Yes a lot.
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.
Property prices in Budva have reached historic highs, with average prices for standard apartments between €1,700 and €3,500 per square meter. The past year saw nearly 50% price growth in coastal areas, driven by foreign investment, tourism expansion, and anticipation of EU accession. New developments and luxury properties are leading the appreciation, especially in prime zones like Old Town, Sveti Stefan, and waterfront districts.
While official forecasts suggest continued growth of 3-7% annually through 2025, authorities acknowledge moderate overvaluation and expect a gradual market correction. Despite potential risks including foreign investment dependency and possible oversupply, demand from international buyers, digital nomads, and investors remains robust, supported by rental yields of 5-10% and Montenegro's improving infrastructure and EU integration prospects.
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.
Sources
- Global Property Guide - Montenegro Property Prices
- Investropa - Budva Price Forecasts 2025
- The Wandering Investor - Montenegro Real Estate Market
- Statista - Montenegro Real Estate Market Forecast
- Investropa - Montenegro Real Estate Market Statistics
- Objekta Real Estate - Budva Property Costs
- Wikipedia - Montenegro EU Accession
- Royal Town Kotor - EU Accession Impact
- Immigrant Invest - Montenegro Real Estate Guide
- International Investment - Ministry of Finance Property Forecast