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
Everything you need to know about rental yields in Budva is in this article, from average gross and net returns to which neighborhoods deliver the best cashflow.
We update this blog post regularly so the numbers reflect what's actually happening in the Budva property market right now.
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's average gross rental yield in early 2026 sits around 5.5%, but inland neighborhoods like Rozino and Dubovica can push past 6.5% because purchase prices stay lower while rents hold steady.
- The gap between Budva's gross and net yields is roughly 2 percentage points, largely eaten up by a vacancy buffer that accounts for the town's strong seasonality and winter tenant turnover.
- Studios and one-bedroom apartments in Budva consistently outperform larger units on yield because they attract the deepest pool of renters, from seasonal workers to remote professionals.
- Prime seafront areas like Stari Grad and Slovenska obala often yield below 4.5% gross because buyers pay a lifestyle premium that long-term tenants simply won't match in rent.
- Montenegro's 2023 census shows a high share of homes used seasonally, which explains why even "long-term" landlords in Budva should budget for about one month of vacancy per year.
- The upcoming Budva bypass, valued at around €237 million, could ease congestion and lift rents in neighborhoods along the main access corridors once construction wraps up.
- Crowne Plaza Budva is set to open in early 2026 on Slovenska obala, bringing jobs and business travelers that may support rental demand in the central promenade area.
- Property tax in Budva typically runs between 0.3% and 1.0% of assessed value per year, a modest but unavoidable bite out of net yield that landlords often underestimate.
What are the rental yields in Budva as of 2026?
What's the average gross rental yield in Budva as of 2026?
As of early 2026, the average gross rental yield in Budva across all residential property types sits at roughly 5.5% per year.
Most typical residential properties in Budva fall within a gross yield range of about 4.5% to 6.5%, depending on location, property condition, and how well the unit is priced relative to the local rental market.
This puts Budva slightly above the broader Montenegrin coastal average, which makes sense given Budva's status as the country's most active tourism hub with year-round rental demand.
The single biggest factor shaping gross yields in Budva right now is the gap between prime seafront pricing and what long-term tenants are actually willing to pay, which compresses yields in the most desirable locations while leaving room for better returns inland.
What's the average net rental yield in Budva as of 2026?
As of early 2026, the average net rental yield in Budva across all residential property types is approximately 3.6% per year.
The typical gap between gross and net yields in Budva runs about 1.5 to 2 percentage points, which reflects the real costs of owning and managing a rental property in a seasonal coastal market.
The expense that takes the biggest bite out of gross yield in Budva is the vacancy and seasonality buffer, because even long-term landlords often face winter turnover or gaps between tenants in a town where many homes are used seasonally.
Most standard investment properties in Budva land somewhere between 2.8% and 4.6% net yield, with the range reflecting differences in property tax obligations, maintenance needs, and whether the landlord self-manages or pays for professional help.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market 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 yield is considered "good" in Budva in 2026?
In Budva's rental market in 2026, a gross yield of 6% or higher is generally considered "good" by local investors who prioritize steady cashflow over lifestyle positioning.
The threshold that separates average performers from high performers typically sits around 5.5% gross, meaning anything above that puts you ahead of most comparable properties in the market, while yields below 4.5% usually signal you're paying a premium for location rather than income potential.
How much do yields vary by neighborhood in Budva as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Budva is roughly 2 percentage points, which is a meaningful difference when you're calculating long-term returns.
The neighborhoods that typically deliver the highest rental yields in Budva are the more "local living" areas like Rozino, Dubovica, Lazi, Golubovina, and Babin Do, where purchase prices stay reasonable but rents remain solid thanks to walkability and everyday services.
On the other end, the lowest-yield neighborhoods tend to be the prime tourist spots like Stari Grad (Old Town), Slovenska obala, Bečići beachfront, Rafailovići, Pržno, and the Sveti Stefan area, where buyers pay a hefty premium for sea views and prestige.
The main reason yields vary so much across Budva neighborhoods is that seafront and Old Town prices are driven by lifestyle buyers and capital appreciation hopes, while year-round tenants simply won't pay rents high enough to justify those purchase prices.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Budva.
How much do yields vary by property type in Budva as of 2026?
As of early 2026, gross rental yields in Budva range from roughly 4% for villas and larger houses up to about 6.5% for studios and compact one-bedroom apartments.
Studios and one-bedroom apartments currently deliver the highest average gross rental yield in Budva because they attract the broadest pool of renters, from seasonal workers to couples to remote professionals, and stay occupied more consistently.
Villas and larger houses typically deliver the lowest average gross rental yield in Budva, as their luxury pricing, especially with sea views, rarely translates into proportionally higher long-term rents.
The key reason yields differ between property types in Budva is that smaller units command higher rent per square meter while not always costing proportionally more to buy, which tilts the math in favor of compact apartments.
By the way, you might want to read the following:
- What rental yields can you expect for an apartment in Budva?
- What rental yields can you expect for a villa in Budva?
What's the typical vacancy rate in Budva as of 2026?
As of early 2026, the typical vacancy rate for long-term rental properties in Budva runs between 6% and 10%, which translates to roughly 3 to 6 weeks of downtime per year for a correctly priced, well-located unit.
Vacancy rates vary quite a bit across Budva neighborhoods, with practical living areas like Rozino and Dubovica seeing lower vacancy, while tourist-heavy zones can feel busy in summer but empty in winter.
The main factor driving vacancy rates in Budva is the town's strong seasonality, as many owners prefer winter leases combined with summer tourist lets, which creates artificial vacancy windows even when demand exists.
Budva's vacancy dynamics are higher than Montenegro's inland cities because census data shows a large share of coastal homes are used seasonally, making Budva one of the places where this pattern is most visible.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Budva.
What's the rent-to-price ratio in Budva as of 2026?
As of early 2026, the average annual rent-to-price ratio in Budva is approximately 5.5%, which is essentially the same concept as gross rental yield expressed as a percentage of purchase price.
A rent-to-price ratio above 5% is generally considered favorable for buy-to-let investors in Budva, and since this ratio directly equals your gross yield, anything pushing toward 6% or higher signals a property with strong income potential relative to its cost.
Budva's rent-to-price ratio compares reasonably well to other Adriatic coastal towns, sitting above some Croatian resort destinations but below major European capitals where prices have outpaced rents more dramatically.
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 neighborhoods and micro-areas in Budva give the best yields as of 2026?
Where are the highest-yield areas in Budva as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Budva are Rozino, Dubovica, and Lazi, with Golubovina and Babin Do close behind.
In these top-performing areas, investors can typically expect gross rental yields in the range of 5.5% to 6.5%, which is meaningfully above the Budva average.
What these high-yield areas share is that they offer "local living" appeal with walkable services and everyday amenities, keeping purchase prices accessible while still attracting solid year-round tenant demand.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Budva.
Where are the lowest-yield areas in Budva as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Budva are Stari Grad (Old Town), Slovenska obala along the promenade, and the Sveti Stefan area.
In these low-yield areas, gross rental yields typically fall in the range of 3.5% to 4.5%, reflecting the premium prices buyers pay for prestige and sea views.
The main reason yields are compressed in these areas is that purchase prices are driven by lifestyle buyers and capital appreciation expectations, while long-term tenants won't pay rents high enough to match that premium.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Budva.
Which areas have the lowest vacancy in Budva as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Budva are Rozino, Dubovica, and the wider Centar area away from the immediate first line.
In these low-vacancy areas, landlords typically experience vacancy rates in the range of 4% to 6%, which means only about 2 to 3 weeks of downtime per year.
The main demand driver keeping vacancy low in these areas is their practical appeal for year-round living, with nearby services, schools, and everyday amenities that attract local workers and long-term residents rather than just summer tourists.
The trade-off investors typically face when targeting these low-vacancy areas is that while occupancy is more stable, the headline rents tend to be lower than what you could charge in prime seafront locations during peak season.
Which areas have the most renter demand in Budva right now?
The top three neighborhoods currently experiencing the strongest renter demand in Budva are Rozino, Centar, and Dubovica, with Bečići also attracting strong interest from higher-budget tenants.
The renter profile driving most of the demand in these areas includes local workers, seasonal hospitality staff, remote workers, and couples seeking practical furnished apartments with good walkability.
In these high-demand neighborhoods, well-priced rental listings typically get filled within one to two weeks, especially for furnished studios and one-bedroom units in good condition.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Budva.
Which upcoming projects could boost rents and rental yields in Budva as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in Budva are the Budva bypass road (valued at around €237 million), the Crowne Plaza Budva hotel opening on Slovenska obala, and ongoing municipal infrastructure upgrades in the wider urban area.
The neighborhoods most likely to benefit from these projects include the broader Budva urban area along main access corridors for the bypass, and the central promenade and Slovenska obala area for the Crowne Plaza, which will bring jobs and business travelers.
Once these projects are completed, investors might realistically expect rent increases in the range of 5% to 10% in directly affected corridors, though the timeline for the bypass means the full effect will unfold over several years.
You'll find our latest property market analysis about Budva here.
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What property type should I buy for renting in Budva as of 2026?
Between studios and larger units in Budva, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments are the better-performing unit type in Budva in terms of both rental yield and occupancy, consistently outperforming larger units on cashflow metrics.
Studios in Budva typically deliver gross rental yields in the range of 5.5% to 6.5% (roughly €140 to €180 per square meter annually, or about $150 to $195 USD), while larger two-bedroom and three-bedroom units often fall closer to 4.5% to 5.5%.
The main factor explaining this difference is that smaller units attract the deepest renter pool in Budva, including seasonal workers, couples, and remote professionals, making them easier to keep occupied year-round.
One scenario where a larger unit might actually be the better investment is if you're targeting families who need space near schools and services, as these tenants tend to sign longer leases and take better care of the property.
What property types are in most demand in Budva as of 2026?
As of early 2026, the most in-demand property type in Budva is the furnished one-bedroom apartment in a walkable location with good access to services.
The top three property types ranked by current tenant demand in Budva are: first, furnished one-bedroom apartments; second, studios; and third, practical two-bedroom apartments suitable for couples or small families.
The primary trend driving this demand pattern is Budva's mix of tourism workers, remote professionals, and young couples who need affordable, move-in-ready housing without the commitment of buying.
One property type currently underperforming in demand and likely to remain so is the large villa segment, as these properties attract a very narrow buyer and renter pool and face significant seasonality challenges for long-term letting.
What unit size has the best yield per m² in Budva as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Budva is approximately 25 to 45 square meters, which covers studios and compact one-bedroom apartments.
For units in this optimal size range, the typical gross rental yield per square meter runs around €12 to €16 per month (roughly $13 to $17 USD or €144 to €192 annually), translating to yields between 5.5% and 6.5%.
The main reason smaller or larger units tend to have lower yield per square meter is that rents don't scale proportionally with size in Budva, so you pay more per square meter on a large apartment but can't charge enough extra rent to compensate.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Budva.
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.
What costs cut my net yield in Budva as of 2026?
What are typical property taxes and recurring local fees in Budva as of 2026?
As of early 2026, the estimated annual property tax for a typical rental apartment in Budva falls in the range of 0.3% to 1.0% of assessed property value, which for a €100,000 apartment means roughly €300 to €1,000 per year (about $325 to $1,080 USD).
Beyond property tax, landlords in Budva should also budget for communal service charges in multi-unit buildings, which vary by building but typically run a few hundred euros per year, plus any locally administered fees tied to property use categories.
Combined, these taxes and fees typically represent about 3% to 6% of gross rental income in Budva, depending on the property's assessed value and the specific building's communal charges.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Budva.
What insurance, maintenance, and annual repair costs should landlords budget in Budva right now?
The estimated annual landlord insurance cost for a typical rental property in Budva is relatively modest, usually a few hundred euros per year (roughly €150 to €400, or $160 to $430 USD), depending on coverage level and property value.
For maintenance and repairs, a recommended annual budget in Budva is about 0.8% to 1.2% of property value, which for a €100,000 apartment means setting aside roughly €800 to €1,200 per year (about $865 to $1,300 USD).
The type of repair expense that most commonly catches landlords off guard in Budva is humidity-related damage, as the coastal climate and heavy summer usage can accelerate wear on air conditioning units, bathroom fixtures, and exterior surfaces.
In total, landlords should realistically budget around €1,000 to €1,600 per year (roughly $1,080 to $1,730 USD) for the combined cost of insurance, maintenance, and repairs on a typical Budva rental apartment.
Which utilities do landlords typically pay, and what do they cost in Budva right now?
In Budva, long-term lease tenants usually pay their own electricity, water, and internet bills, though some landlords include certain utilities to stay competitive during the winter off-season, while short-term rental hosts almost always cover all utilities as part of the nightly rate.
When landlords do cover utilities, the estimated monthly cost for a typical rental unit in Budva runs around €50 to €120 (roughly $55 to $130 USD), depending on the season and whether air conditioning or heating is included.
What does full-service property management cost, including leasing, in Budva as of 2026?
As of early 2026, the estimated monthly property management fee for full-service long-term management in Budva runs about 8% to 12% of collected rent, which for a €500 per month apartment means roughly €40 to €60 (about $43 to $65 USD), while short-term rental management can reach 15% to 30% of revenue.
On top of ongoing management, the typical leasing or tenant-placement fee in Budva is often equivalent to half a month's rent to one full month's rent (roughly €250 to €500, or $270 to $540 USD, for a mid-range unit), charged each time a new tenant is placed.
What's a realistic vacancy buffer in Budva as of 2026?
As of early 2026, landlords in Budva should set aside about 8% of annual rental income as a vacancy buffer, which accounts for the town's seasonality and typical tenant turnover patterns.
In practical terms, most landlords in Budva experience about 3 to 5 weeks of vacancy per year, though those who switch between winter long-term leases and summer tourist lets may see more turnover gaps.
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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 (Prices of Dwellings) | It's Montenegro's official statistics office, making it the closest thing to an authoritative benchmark for property prices. | We used it as the anchor for Coastal Region price per square meter. We then adjusted to Budva-specific levels using live listing evidence. |
| MONSTAT (Census 2023) | It's official census output, which is the best source for understanding how homes are actually used across Montenegro. | We used it to explain why Budva has strong seasonality effects. We translated that into a realistic vacancy buffer for landlords. |
| Central Bank of Montenegro (CBCG) | It's the central bank, and its stability reporting flags system-level risks including those affecting real estate. | We used it to frame the big picture macro context affecting yields. We cross-checked our yield assumptions against this backdrop. |
| Government of Montenegro (Budva Bypass) | It's an official government release about a major infrastructure project that will affect Budva's accessibility. | We used it to identify rent catalysts and which micro-areas could benefit. We translated it into potential rent upside in affected corridors. |
| Government of Montenegro (Bypass Tender) | It's another official update confirming the bypass project is moving into execution stages. | We used it as a reality check that the bypass isn't just talk. We treat this as supporting evidence for future rent growth. |
| Službeni list Crne Gore (Official Gazette) | It's the official legal publication, making it the authoritative record of municipal tax rules in Budva. | We used it to ground the property tax part of net yield calculations. We converted the legal framework into a practical cost range. |
| Opština Budva (Municipality) | It's the municipality's own page where local tax and fee documents are published. | We used it to map what fees exist locally. We sanity-checked that we weren't missing any Budva-specific recurring costs. |
| EPCG (Electricity Utility) | It's the main electricity supplier, so it's the practical source for understanding how utility bills work. | We used it to explain utilities at a high level. We turned that into a landlord budgeting range when utilities are included in rent. |
| Vodovod i Kanalizacija Budva | It's the local water utility's official tariff document showing what customers are actually charged. | We used it to estimate water and wastewater recurring costs. We folded that into net yield scenarios where landlords cover utilities. |
| IHG (Crowne Plaza Budva) | It's the hotel group's own announcement, so it's the cleanest confirmation of the project and timeline. | We used it as a near-term demand signal for the central promenade area. We translated it into which areas could see rent support. |
| AirDNA | It's a widely used short-term rental dataset with consistent methodology across markets. | We used it only for the short-term rental occupancy reality check. We kept it separate from long-term yields and clearly labeled it. |
| Estitor | It's a large portal with visible listing inventory and date-stamped updates useful for triangulation. | We used it to cross-check the direction of rents in early 2026. We treat it as market asking prices, not official statistics. |
| Realitica (Rentals) | It's a long-running regional classifieds portal with lots of real, unit-level listings. | We sampled typical rent levels and unit sizes to estimate rent bands. We used it to validate that our rent assumptions aren't too optimistic. |
| Realitica (Dubovica Sales) | It provides unit-level sale prices that help ground neighborhood price differences. | We used it to illustrate price dispersion by micro-area. We used it to explain why yields can rise inland even when rents are similar. |
| IMF Article IV Report | It's a top-tier international institution and a standard reference for macro risk assessment. | We used it to frame inflation and interest-rate risk that feeds into rent growth. We kept it as context rather than a direct yield input. |
| SeeNews | It's a regional business newswire that often mirrors government tender updates independently. | We used it as a cross-check that the bypass is being covered consistently. We rely on official sources as primary and use this for confirmation. |
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