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 tourism capital, and the real estate market here reflects that energy with high demand, limited coastal land, and prices that have been climbing steadily.
In this blog post, we break down the current housing prices in Budva, explain how the market is moving in 2026, and share what you really need to know before buying property in this Adriatic resort town.
We update this article regularly to keep the data fresh and useful for foreign buyers who want accurate, easy-to-understand information.
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.
How's the real estate market going in Budva in 2026?
What's the average days-on-market in Budva in 2026?
As of early 2026, the estimated average days-on-market for a correctly priced and legally clean residential property in Budva sits between 75 and 120 days, which reflects a market that is still active but requires patience from sellers who overprice or have paperwork issues.
That range covers most typical listings, though you will see prime apartments near Slovenska Beach or in popular complexes sell faster (sometimes in 45 to 60 days), while hillside properties with access problems or unclear cadastre status can easily sit for six months or longer.
Compared to two years ago, when coastal Montenegro saw a rush of post-pandemic and foreign buyer demand, days-on-market have stretched slightly as buyers became more selective and the initial buying frenzy calmed into a steadier pattern where quality and legal clarity matter more than ever.
Are properties selling above or below asking in Budva in 2026?
As of early 2026, most residential properties in Budva close at around 3% to 8% below the asking price, which is typical for a market where sellers often test higher prices and serious buyers negotiate down.
We estimate that roughly 15% to 20% of properties sell at or above asking, mostly in the prime, scarce segments like newer buildings with parking near the beach, while the remaining 80% or so close at or below asking after some negotiation, and we have moderate confidence in these numbers because Budva lacks an official sale-to-ask ratio but the pattern is consistent across broker feedback and transaction trends.
The property types and neighborhoods most likely to see bidding wars and above-asking sales in Budva include turnkey apartments in new complexes in Becici and Rafailovici with sea views, units in the Old Town (Stari Grad) with character and proper papers, and any scarce first-line coastal property where foreign buyers compete with each other during the peak season.
By the way, you will find much more detailed data in our property pack covering the real estate market in Budva.
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.
What kinds of residential properties can I realistically buy in Budva?
What property types dominate in Budva right now?
The estimated breakdown of residential property types available for sale in Budva is roughly 70% apartments (studios to three-bedroom units), 20% houses and villas (mostly on hillsides or in surrounding villages), and 10% townhouses or mixed-use buildings, with apartments clearly dominating the market.
The single property type that represents the largest share of the Budva market is the one- to two-bedroom apartment, which makes up more than half of all listings and is the most traded product by far.
This dominance happened because Budva developed primarily as a summer tourism destination, so builders focused on compact, rentable apartments that appeal to both vacationers and investors looking for short-term rental income, while land scarcity near the coast made large villa plots rare and expensive.
If you want to know more, you should read our dedicated analyses:
- 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?
Are new builds widely available in Budva right now?
The estimated share of new-build properties among all residential listings in Budva is around 25% to 35%, meaning new construction is available but not overwhelming the market, partly because Budva has almost exhausted its supply of buildable coastal land.
As of early 2026, the neighborhoods and districts in Budva with the highest concentration of new-build developments include Rozino (which has several mid-rise residential projects with modern amenities), Becici (popular for new resort-style complexes), and Rafailovici (where newer buildings with sea views attract both investors and end-users).
Get fresh and reliable information about the market in Budva
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Which neighborhoods are improving fastest in Budva in 2026?
Which areas in Budva are gentrifying in 2026?
As of early 2026, the top neighborhoods in Budva showing the clearest signs of gentrification include Rozino (where a new shopping center and better infrastructure are transforming the area), Dubovica (attracting year-round residents with improved walkability), and parts of Lazi and Babin Do (where newer buildings are replacing older stock on the hillsides).
The visible changes indicating gentrification in these Budva areas include the construction of modern residential complexes with elevators and parking, the opening of new cafes and supermarkets (like the Rozino shopping center project), younger families moving in for year-round living rather than just summer use, and renovations of older buildings to meet higher standards.
Over the past two to three years, gentrifying neighborhoods in Budva have seen estimated price appreciation of around 10% to 20%, with Rozino and areas benefiting from infrastructure improvements outpacing older, more congested parts of town.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Budva.
Where are infrastructure projects boosting demand in Budva in 2026?
As of early 2026, the top areas in Budva where major infrastructure projects are currently boosting housing demand include Markovic, Lastva Grbaljska, and the western approaches near Jaz Beach, all of which sit along the path of the planned Budva bypass or the upgraded Tivat airport corridor.
The specific infrastructure projects driving that demand are the Budva Bypass (a 9-kilometer expressway from Markovic to Lastva Grbaljska valued at around 237 million euros, featuring tunnels and bridges) and the M2 Tivat to Budva (Jaz) road rehabilitation project financed by the EBRD, which improves the critical airport-to-Budva connection.
The estimated timeline for the Budva Bypass is 48 months from contractor introduction to site, with the tender launched in late 2025, meaning completion could come around 2029 or 2030, while the M2 Tivat-Budva road upgrade has already seen significant progress and sections are nearing completion.
In Budva, the typical price impact on nearby properties is a modest 5% to 10% lift when infrastructure projects are announced, followed by stronger appreciation of 15% to 25% over several years once projects are completed and traffic relief becomes real, especially for properties that were previously hard to access during summer congestion.
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.
What do locals and insiders say the market feels like in Budva?
Do people think homes are overpriced in Budva in 2026?
As of early 2026, the general sentiment among locals and market insiders in Budva is that homes are expensive relative to local salaries, but not necessarily overpriced for what the tourism-driven market delivers to foreign buyers and investors.
Locals in Budva who argue homes are overpriced typically cite the gap between average Montenegrin wages (around 800 to 1,000 euros per month) and apartment prices that can reach 2,500 to 3,500 euros per square meter for new builds, making ownership unattainable for most working families.
Those who believe prices are fair in Budva point to the limited coastal land supply, strong tourism fundamentals, the euro-denominated market stability, and the fact that foreign buyers and investors are willing to pay these prices because comparable Mediterranean locations cost much more.
The price-to-income ratio in Budva is significantly higher than the Montenegrin national average (where inland cities like Podgorica are more affordable) and is more comparable to other Adriatic resort towns in Croatia or Slovenia, reflecting Budva's unique status as a tourism capital rather than a typical local housing market.
What are common buyer mistakes people regret in Budva right now?
The most frequently cited buyer mistake that people regret making in Budva is purchasing a property without thoroughly verifying the cadastre registration status, which can lead to discovering the building has unresolved legalization issues, undisclosed liens, or boundaries that do not match what was promised.
The second most common buyer mistake people mention regretting in Budva is underestimating the summer traffic and parking situation, which means buying an apartment that looks great on paper but becomes nearly unusable during peak season because you cannot park or access it easily.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Budva.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Budva.
Get the full checklist for your due diligence in Budva
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How easy is it for foreigners to buy in Budva in 2026?
Do foreigners face extra challenges in Budva right now?
The estimated overall difficulty level foreigners face when buying property in Budva compared to local buyers is moderate: the legal framework allows foreign ownership of apartments and buildings, but the process involves more paperwork, translation requirements, and coordination than locals experience.
The specific legal restrictions that apply to foreign buyers in Budva include the prohibition on directly purchasing agricultural land, forest land, or properties in border zones and designated security areas, though apartments and buildings in Budva's urban core are fully accessible to foreigners.
The practical challenges foreigners most commonly encounter in Budva include the need for certified Montenegrin translations of all documents, coordinating with notaries and lawyers who may not speak English fluently, verifying cadastre status through an unfamiliar system, and the fact that banks and sellers often move slower than international buyers expect.
We will tell you more in our blog article about foreigner property ownership in Budva.
Do banks lend to foreigners in Budva in 2026?
As of early 2026, mortgage financing for foreign buyers in Budva is available but limited, with only a handful of banks like Erste Bank and CKB (Crnogorska Komercijalna Banka) actively offering products to non-residents, and the terms are significantly stricter than what locals receive.
The typical loan-to-value ratios foreign buyers can expect in Budva range from 30% to 50%, meaning you will need a down payment of 50% to 70% of the purchase price, and interest rates for foreigners generally fall between 5% and 8% annually depending on your profile and the bank's assessment.
The documentation and income requirements banks typically demand from foreign applicants in Budva include a valid passport, proof of income from your home country (at least 3 to 6 months of bank statements or employment confirmation), certified translations into Montenegrin, and often a requirement to establish a local bank account and sometimes obtain temporary residency before final approval.
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.
How risky is buying in Budva compared to other nearby markets?
Is Budva more volatile than nearby places in 2026?
As of early 2026, Budva's price volatility is comparable to other Adriatic resort towns like Dubrovnik in Croatia or coastal Slovenia, meaning it experiences larger swings than inland cities but follows a regional tourism-driven pattern rather than being uniquely risky.
Over the past decade, Budva has experienced notable price swings including a boom in 2006-2008 driven by foreign (especially Russian) investment, a sharp correction during the 2009-2010 financial crisis, a slow recovery through the mid-2010s, and another strong upswing from 2021 to 2024 as post-pandemic demand and new buyer waves (including Ukrainians, Serbians, and digital nomads) pushed prices higher, while nearby markets like Croatia's coast followed a similar but smoother trajectory with EU membership providing more stability.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Budva.
Is Budva resilient during downturns historically?
The estimated historical resilience of Budva property values during past economic downturns is moderate to strong, largely because the tourism engine keeps generating rental demand and foreign buyers often view Adriatic property as a store of value even when local economies struggle.
During the most recent major downturn (the 2008-2010 global financial crisis), property prices in Budva dropped by an estimated 20% to 30% from their peak, with recovery taking roughly five to seven years to return to pre-crisis levels, though the trajectory varied by property type and location.
The property types and neighborhoods in Budva that have historically held value best during downturns include well-located apartments in Stari Grad (the Old Town), seafront units in Becici with established rental track records, and quality newer buildings in Rozino with proper documentation, while hillside properties with access issues and units in buildings with legal problems suffered larger and longer corrections.
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How strong is rental demand behind the scenes in Budva in 2026?
Is long-term rental demand growing in Budva in 2026?
As of early 2026, long-term rental demand in Budva is growing moderately, driven by a mix of year-round tourism workers, digital nomads taking advantage of Montenegro's visa-friendly policies, and foreigners who rent before deciding to buy.
The tenant demographics driving long-term rental demand in Budva include young professionals working in hospitality and tourism services, expats and remote workers from Russia, Ukraine, Serbia, and Western Europe, and small families who want coastal living but are not ready to purchase.
The neighborhoods in Budva with the strongest long-term rental demand right now include Rozino (for its practical amenities and proximity to schools and services), Dubovica (for quieter year-round living), and the areas near TQ Plaza and the civic center where daily life is easiest without a car.
You might want to check our latest analysis about rental yields in Budva.
Is short-term rental demand growing in Budva in 2026?
Montenegro currently has relatively light regulation on short-term rentals compared to many EU countries, though property owners must register their units and pay applicable taxes, and Budva's high season demand makes enforcement of any future restrictions a topic to watch.
As of early 2026, the estimated growth trend for short-term rental demand in Budva is positive but competitive: more tourists are visiting, but the supply of Airbnb-style listings has also grown, meaning revenue per unit is not rising as fast as the raw visitor numbers.
The current estimated average occupancy rate for short-term rentals in Budva is around 54%, which reflects strong summer peaks (often 80% to 95% in July and August) balanced against much lower winter occupancy (sometimes below 20%), making seasonality the defining feature of Budva's STR market.
The guest demographics driving short-term rental demand in Budva include summer beach tourists from Serbia, Russia, and Western Europe, regional weekend visitors, and a growing segment of digital nomads and remote workers who book for weeks or months at a time during shoulder seasons.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Budva.
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 are the realistic short-term and long-term projections for Budva in 2026?
What's the 12-month outlook for demand in Budva in 2026?
As of early 2026, the estimated 12-month demand outlook for residential property in Budva is stable to moderately positive, with buyer interest expected to remain solid thanks to continued tourism growth, infrastructure progress, and Montenegro's appeal as a non-EU but euro-using destination.
The key economic and political factors most likely to influence demand in Budva over the next 12 months include Montenegro's progress toward EU membership (which boosts investor confidence), eurozone interest rate movements (since Montenegro uses the euro), the pace of infrastructure project completion, and any shifts in the mix of foreign buyer nationalities.
The forecasted price movement for Budva over the next 12 months is an increase of approximately 3% to 7%, with stronger gains possible in neighborhoods benefiting from infrastructure improvements and weaker performance for properties with legal or access issues.
By the way, we also have an update regarding price forecasts in Montenegro.
What's the 3 to 5 year outlook for housing in Budva in 2026?
As of early 2026, the estimated 3 to 5 year outlook for housing prices and demand in Budva is gradually positive, with cumulative appreciation of 15% to 30% plausible if infrastructure projects complete on schedule and Montenegro continues progressing toward EU integration.
The major development projects expected to shape Budva over the next 3 to 5 years include the Budva Bypass (which will dramatically reduce summer traffic congestion), continued improvements to the M2 Tivat airport corridor, potential new hotel and mixed-use developments, and ongoing residential projects in Rozino and Becici.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Budva is the pace of EU accession negotiations: a clear path to membership could accelerate foreign investment and price growth, while political instability or stalled reforms could dampen sentiment and slow the market.
Are demographics or other trends pushing prices up in Budva in 2026?
As of early 2026, the estimated impact of demographic trends on housing prices in Budva is significant and positive, as the town continues to attract both permanent relocators and seasonal residents from across Europe and beyond.
The specific demographic shifts most affecting prices in Budva include the ongoing influx of Serbian buyers (now the largest foreign buyer group), a wave of Ukrainian and Russian relocators since 2022, digital nomads taking advantage of Montenegro's remote work visa, and retirees from Western Europe seeking affordable Mediterranean living.
The non-demographic trends also pushing prices in Budva include the remote work revolution (which makes coastal living viable for people who previously needed to be in major cities), the structural appeal of Montenegro's euro-based economy without EU bureaucracy, and continued foreign direct investment flowing into coastal real estate as highlighted in official investment reports.
These demographic and trend-driven price pressures are expected to continue in Budva for at least the next 3 to 5 years, as the underlying drivers (tourism appeal, affordable Mediterranean positioning, infrastructure improvements, EU candidacy) remain intact and show no signs of reversing.
What scenario would cause a downturn in Budva in 2026?
As of early 2026, the estimated most likely scenario that could trigger a housing downturn in Budva would be a significant tourism shock combined with tighter credit conditions, such as a regional conflict affecting travel, a sharp eurozone recession, or a banking sector pullback from foreign lending.
The early warning signs that would indicate such a downturn is beginning in Budva include a noticeable drop in tourist arrivals and overnight stays (watch MONSTAT tourism data), rising days-on-market for quality properties, banks tightening mortgage requirements further, and a visible increase in distressed or below-market sales from overleveraged owners.
Based on historical patterns, a potential downturn in Budva could realistically see prices decline by 15% to 25% from peak levels over 18 to 36 months, similar to the 2009-2010 correction, though the tourism-driven fundamentals and limited coastal supply tend to prevent deeper or longer crashes compared to markets that rely purely on local demand.
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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 New-Build Prices Q2 2025 | Montenegro's official statistics office publishing transaction-based new-build prices from actual concluded contracts. | We used it as our baseline for coastal region prices, then applied a Budva-specific premium adjustment. We also tracked quarterly changes to confirm price momentum direction. |
| MONSTAT Building Permits Q1 2025 | Official supply-side indicator produced from ministry permitting data showing what construction is in the pipeline. | We used it to assess whether new supply is expanding or constrained. We connected permit trends to price resilience in coastal markets. |
| Central Bank of Montenegro (CBCG) | The central bank's official banking-rate statistics covering mortgage and lending rates across Montenegrin banks. | We used it to describe the financing environment and ground our mortgage rate estimates. We anchored foreign buyer rate expectations to the official data plus a non-resident premium. |
| AirDNA Budva Overview | A widely used, methodology-driven short-term rental dataset covering Airbnb and Vrbo performance metrics at the city level. | We used it to quantify short-term rental demand, occupancy rates, and revenue in Budva. We also used the listing count to understand what property types dominate the rental market. |
| U.S. State Department Investment Climate Statement 2025 | A government-grade synthesis citing official macro and investment facts, including foreign direct investment patterns in Montenegro. | We used it to confirm that real estate is a major FDI recipient, which matters for coastal pricing pressure. We also referenced it for the broader economic and regulatory context. |
| Government of Montenegro Budva Bypass Announcement | An official project announcement with route details, budget, and implementation timeline from the Montenegrin government. | We used it to identify infrastructure that can shift demand between Budva neighborhoods. We pinpointed likely beneficiary zones along the Markovic to Lastva Grbaljska corridor. |
| EBRD M2 Tivat-Budva Road Procurement | An official EBRD procurement record with contract value and timeline for a major road upgrade near Budva. | We used it to confirm the scale and schedule of the airport corridor improvement. We linked better access to rental and resale liquidity in impacted areas. |
| eRegulations Montenegro Property Registration | A standardized, process-focused portal citing applicable laws and typical processing times for property registration. | We used it to describe the practical steps and timing for registration. We set realistic expectations for what foreign buyers face in terms of paperwork. |
| Global Property Guide Montenegro | A respected international property data aggregator that compiles price trends, rental yields, and market analysis for Montenegro. | We used it to benchmark Budva prices against national and regional averages. We also referenced their historical data for downturn analysis. |
| BIS Residential Property Price Statistics | The Bank for International Settlements' cross-country framework for comparable property price indicators and volatility measurement. | We used it to structure our risk comparison between Budva and nearby markets. We applied their methodology to assess relative volatility. |
| Eurostat House Price Index | The EU's official HPI release providing a useful benchmark for nearby Adriatic markets like Croatia. | We used it to contextualize Budva's growth within the broader regional cycle. We showed that the Adriatic as a whole has been appreciating, not just Montenegro. |
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