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Buying a property in Budva: a complete guide

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property investment Budva

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

Considering buying real estate in Budva? You're not alone!

Many people are fascinated by Budva's Adriatic beauty and dream of owning a luxurious villa or a stylish apartment with sea views there.

Is it worth investing there, though? Are property prices increasing in Budva? Is it expensive? Is it more profitable to buy in the Old Town or Becici? What about the taxes? Where are the best rental yields?

We've figured it out for you.

The Investropa team knows this market inside and out. Actually, we've put all our findings together in a pack. Get it now.

In this article, get ready to receive valuable insights from us.

How's the real estate market in Budva?

Is the property market getting better or worse? People have different views. We like to be unique and analyze the latest data and stats to make accurate conclusions.

Property types

In Budva, you can find various types of properties for sale, catering to different preferences and needs.

These include apartments with different sizes and features, ranging from cozy studios to spacious multi-bedroom units.

There are also houses and villas available, offering more privacy and often with outdoor spaces like gardens or terraces.

Additionally, commercial properties like shops or offices might be on the market for those interested in business ventures.

Whether you're looking for a comfortable home, a vacation getaway, or an investment opportunity, Budva offers a diverse range of properties to choose from.

Better to buy or rent?

(If you're buying for yourself and not to rent out)

If Budva, the picturesque coastal town of Montenegro, is where you plan to settle, you may be considering the advantages and disadvantages of buying versus renting a property.

Without a doubt, it's better to buy if you want to have a secure investment and the potential for long-term equity accumulation.

Actually, the property price-to-rent ratio is a good metric to look at for this kind of decision. This helps you understand the connection between rental income and the property's current price in terms of years.

According to Numbeo, the property price-to-rent ratio in Budva is around 16.5, which is below the world average.

In simple terms, it would typically require 17 years of rental payments, on average, to buy a property in Budva.

Housing prices in Budva

On average, according to the last data from Statistical Office of Montenegro, purchasing a property in Budva will cost you around $4,100 per square meter.

It's evident that there are significant disparities. The value of a square meter for a sea-view property in Budva might differ from a condo in Becici. We actually offer a more in-depth analysis in our pack for buying property in Budva 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 3 properties in Budva.

Also, housing prices in Budva are 28% cheaper than in Tivat.

The most expensive neighbourhoods in Budva are probably Becici and Rafailovici, while the cheapest are probably Petrovac and Sveti Stefan.

Budva Property Price per Square Meter


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.

Don't overlook this while weighing the pros and cons of buying a property in Budva.

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 want to invest in real estate in Budva it's a good thing because, when people experience an increase in wealth, it typically translates to a surge in housing costs.

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

This data is a positive signal - housing prices in Budva might soar in 2024 and after that.

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 Budva

Buying real estate in Budva can be difficult due to the lack of reliable and up-to-date information available, making it the most challenging part of the process. That's why we have created the pack to buy property in Budva and in Montenegro.

Buying process

Within our pack, we've covered the entire buying process extensively. This includes a detailed breakdown of prices and yields based on the area, advice on negotiating prices, and information about obtaining a mortgage.

Now, we're providing you with a simplified version.

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

  1. Research the Budva property market and identify potential properties.
  2. Engage a licensed local real estate agent familiar with Budva regulations.
  3. Verify property ownership at the Budva Land Registry and check for any encumbrances.
  4. Negotiate the price and terms with the seller; draft a Preliminary Sales Agreement.
  5. Hire a Budva-based attorney to review the agreement and conduct due diligence.
  6. Obtain a tax identification number (TIN) from the Montenegrin tax authorities.
  7. Sign the Preliminary Sales Agreement and pay a deposit (usually 10% of the property price).
  8. Conduct a property survey and inspection; ensure compliance with local zoning laws.
  9. Non-resident buyers must apply for approval from the Montenegrin Ministry of Sustainable Development and Tourism.
  10. Transfer the remaining funds, including the property transfer tax (3% for residential properties).
  11. Finalize the Sales Agreement before a notary public in Budva.
  12. Complete the registration process at the Budva Land Registry to obtain the property title deed.

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 Budva

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buying property in Budva

Where to find a property

Looking for properties in Budva? Check out these websites:

  • - Search for properties for sale in Montenegro and customize your preferences.
  • A Place in the Sun - Browse properties for sale in Montenegro.
  • - One of Montenegro's largest classifieds websites with numerous real estate listings.
  • - A 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.

What you can get

As mentioned before, the average price per sqm in Budva is $4,100. A 1-bedroom property of 60 square meters would cost approximately $246,000, and a 2-bedroom of 85 square meters would cost approximately $349,000.

However, prices will change based on both the property itself and its location.

You can expect prices to be steeper in the upscale parts of Budva. A condominium in Budva could come to around $470,000, while a villa in Sveti Stefan would be priced at $920,000.

But, there are cheaper places. You can locate a property in Bijela for $190,000 or a property in Zeleni Pojas for only $160,000.

We give a more detailed pricing list in our full pack for buying property in Montenegro.

Risks and pitfalls

Here are the main pitfalls specific to buying property in Budva, Montenegro:

  • Ambiguous property boundaries due to informal land use practices.
  • Unregistered properties may lack legal recognition and protection.
  • Complex permitting processes can delay construction or renovations.
  • Non-EU citizens may face restrictions on certain property types.
  • Rapidly changing tourism trends may affect rental income.
  • Opaque property pricing for foreigners may lead to overpayment.
  • Unpredictable property tax regulations may impact ownership costs.
  • Limited availability of mortgage loans for non-resident buyers.

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.

real estate Montenegro

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

Living in Budva

Living in Budva is a great experience, offering a vibrant atmosphere and beautiful scenery, making it an ideal destination for those looking to purchase property.

Cost of living

The cost of living in Budva is generally affordable compared to other cities in Montenegro. Prices for basic goods such as groceries, transportation, and utilities are all relatively low, making it a great destination for budget travelers.

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

  • Rent for a one-bedroom apartment in the city center: $600/month.
  • Monthly public transportation pass: $25.
  • Dinner for two at a local restaurant: $40.
  • 1 liter of gasoline: $1.20.
  • Utilities (electricity, water, cooling) for an 85m² apartment: $100/month.
  • Gym membership at a local fitness center: $30/month.
  • Ticket to a movie at a cinema: $6.
  • Cup of locally brewed coffee at a café: $2.

Neighbourhoods and spots

Since our intention is to present information in a clear and reader-friendly manner, we've created a summary table outlining the various neighborhoods in Budva. For yields, prices and rents, check our property pack.

Neighborhood Description Strengths Weaknesses

Old Town

The Old Town is a charming historic area with narrow cobblestone streets and ancient architecture, offering a vibrant atmosphere with various shops, restaurants, and cultural sites.

Rich cultural heritage, popular tourist destination, lively ambiance.

Crowded during peak seasons, limited parking.


Becici is a picturesque coastal neighborhood known for its stunning beach and scenic views, attracting both tourists and locals seeking a relaxed seaside experience.

Beautiful beach, scenic vistas, peaceful environment.

Can be crowded during summer, limited nightlife options.


Przno is a tranquil fishing village offering a laid-back atmosphere, with a sandy beach and traditional seafood restaurants, making it an ideal destination for a relaxing getaway.

Quaint village vibe, seafood restaurants, beautiful coastal setting.

Less nightlife, limited shopping facilities.


Rafailovici is a small coastal town known for its sandy beach and charming waterfront promenade, offering a pleasant atmosphere for beachgoers and seafront dining.

Nice beach, scenic promenade, beachfront restaurants.

Can get crowded, limited parking options.

Budva Center

Budva Center is the lively heart of the city, featuring a mix of historical landmarks, modern shops, restaurants, and a bustling nightlife scene.

Central location, diverse entertainment options, vibrant nightlife.

Noisy at times, higher accommodation costs.


Topla is a residential neighborhood with a mix of apartments and family houses, offering a quieter atmosphere while still being relatively close to the city center.

Residential charm, proximity to amenities, peaceful surroundings.

Limited tourist facilities, fewer entertainment options.


Gospostina is a historic neighborhood with narrow streets, stone houses, and a laid-back vibe, offering a glimpse of Budva's traditional architecture and local life.

Historic charm, local culture, peaceful ambiance.

Limited modern facilities, challenging for navigation.

Life in Budva

The economy of Budva is mainly based on tourism, with a large number of hotels and other tourist-oriented businesses. Agriculture and fishing are also important economic activities in the area, and the city also has a growing service sector.

What expats usually like the most about Budva is the Mediterranean climate and its picturesque beaches. They also appreciate the vibrant nightlife and the unique historical sites such as the Old Town, churches, and fortresses.

Access to healthcare in Budva is generally good, with a number of public and private hospitals and clinics providing a range of medical services.

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invest real estate in Budva

Renting out in Budva

This part is for you if you want to buy a property with the goal of renting it out and making money from it, rather than living there.


Tenant Profiles in Budva

If you decide to buy and rent out to long-term tenants, you should target young professionals, students, and retirees who are looking for a home close to the beach and the city center. You could also target tourists looking for a short-term rental in the summer months.

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

Property type and area Profiles of potential tenants What they are looking for Expected monthly rent in $

Apartment in Old Town

Tourists, expats

Historic charm, central location

$500 - $1000

Studio in Becici

Couples, beach lovers

Proximity to the beach, resort area

$400 - $800

House in Petrovac

Families, retirees

Quiet coastal living, outdoor space

$800 - $1500

Apartment in Budva Riviera

Beachgoers, nightlife seekers

Beach access, entertainment options

$600 - $1200

Condo in Rafailovici

Retirees, relaxation enthusiasts

Peaceful atmosphere, sea views

$600 - $1200

Apartment in Budva Center

Young professionals, artists

Urban lifestyle, cultural scene

$400 - $800

Villa in Blizikuce

Families, nature enthusiasts

Scenic surroundings, privacy

$800 - $1500

Rental yields

Nowadays, the rental yields you get in Budva are between 5% and 7%. There are some opportunities. For a "good" rental yield, you should aim for 7% or more.

In Budva, properties in the city center and close to the beach tend to give the highest rental yields due to the high demand from tourists. The city's unique combination of natural beauty and vibrant nightlife also makes it a desirable destination for travelers.

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 Budva are taxed at 15%, which is not much.


You could also decide to rent short-term to holidaymakers, expats, students, or business travelers visiting Budva for a short stay. Additionally, you could rent short-term to those who are looking for a weekend getaway or a summer vacation in Budva.

If you decide to go with that option, look for properties in the Old Town of Budva or in the residential area of Becici. Both areas offer a great combination of tourist attractions, amenities, and rental potential.

Currently, there are approximately 5,000 active Airbnb listings in Budva, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $70.

You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Budva can make around $600 per month. Also, the average occupancy rate is estimated at 42%.

Is it worth buying real estate in Budva then?

Certainly, when it comes to buying property in Budva, Montenegro, the decision largely depends on your investment goals and your willingness to navigate potential challenges.

If you're in it for the long haul and seek a secure investment with the potential for substantial equity accumulation, Budva can be an attractive destination. The low property price-to-rent ratio and the promise of future economic growth suggest that buying property here could lead to long-term financial stability.

Moreover, the diverse range of property types and the potential for lucrative rental income in a city known for its affordability make it an appealing prospect.

However, if you're looking for quick profits or a straightforward buying process, Budva might not be your best bet. The real estate market can be complex, with a lack of reliable information and potential pitfalls, such as unclear property boundaries and restrictions for non-EU buyers.

This complexity demands thorough research, local expertise, and a willingness to invest time and effort. Ultimately, buying property in Budva is a promising venture for those with a patient, long-term outlook and the determination to overcome the hurdles that can come with it, but it may not be suitable for those seeking fast returns or a hassle-free purchase process.

Make sure you understand the real estate market in Budva

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.

real estate market Budva

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.