Yes, the analysis of Budva's property market is included in our pack
The question of 'the best neighborhood to buy a property in Budva' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At Investropa, when we write a blog post or when we update our our property pack for Montenegro, we want to bring solutions and cover different aims in a clear and organized way.
Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Budva into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
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How is the real estate market in Budva?
The real estate market in Budva, Montenegro, is indeed quite dynamic and attractive, particularly to foreign investors and those seeking a unique blend of Mediterranean charm and modern amenities.
Let's delve into what makes Budva so special.
Budva stands out for its unique blend of historical and natural beauty, which is hard to find elsewhere.
The Old Town, a well-preserved medieval walled city with narrow streets and squares, is a testament to Budva's rich history.
This historic charm is complemented by stunning beaches and a vibrant nightlife, making the city a popular destination for tourists and property buyers alike.
People are drawn to buy in Budva for a variety of reasons.
The city offers a Mediterranean lifestyle with beautiful beaches, such as Mogren and Jaz, and is known for its cultural events, like the famous Budva Theatre City festival.
The combination of historical allure, natural beauty, and modern luxury developments appeals to a wide range of buyers, including retirees looking for a peaceful seaside life, investors seeking rental income from the bustling tourist market, and families wanting a second home in a picturesque location.
Foreign interest in Budva's real estate is particularly high. This is fueled by the relatively affordable property prices compared to other Mediterranean destinations, along with Montenegro's growing economy and potential EU membership in the future.
The country's favorable tax regime and the ease of doing business are additional draws for international buyers.
The dynamism of Budva's real estate market can be evidenced by one notable data point: the steady increase in property prices over recent years, reflecting both the high demand and the ongoing development of high-quality real estate projects.
A unique aspect of properties in Budva is their blend of traditional Montenegrin architectural styles with modern luxury. Many properties, especially those in the Old Town or along the coast, offer this unique combination, providing a living experience that's deeply rooted in the local culture yet equipped with contemporary comforts.
Looking into the future, properties in Budva are likely to gain value due to several factors.
Firstly, Montenegro's potential accession to the European Union will likely boost property values.
Secondly, the ongoing development of high-end resorts and residential areas is attracting more affluent buyers and investors.
Finally, Budva's growing reputation as a tourist hotspot is leading to an increase in demand for rental properties, which in turn drives up property values.
Top neighborhoods in Budva to consider for living
Areas in Budva that are budget-friendly
If you're looking to buy property in Budva on a budget, there are a few neighborhoods you might want to consider.
Here is a summary table. Below, we will give more details.
| Neighborhood | Average Price per sqm | Property Types | Resident Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Rozino | Moderate | Older apartments, newer constructions | Local families, working professionals | Local feel, community vibe | Lacks immediate beach access, nightlife |
| Lastva | Lower end | Traditional houses, new apartments | Long-term residents | Calm environment, community sense | Far from beaches, city amenities |
Rozino
The Rozino district is another affordable area in Budva.
It's less expensive because it's more residential and less focused on tourism. In Rozino, you'll find a variety of properties, from older apartment buildings to newer constructions. Prices per sqm are moderate and likely to appreciate as Budva expands and modernizes.
This neighborhood is popular with local families and working professionals, offering a more authentic Montenegrin living experience.
Rozino's strengths include its local feel and community vibe, but it lacks the immediate beach access and vibrant nightlife found in more central areas.
Lastva
Lastly, consider the Lastva area for budget-friendly property options.
Lastva's lower prices are due to its location being further from Budva's central area and main tourist attractions. The properties here are predominantly traditional houses and some new apartment developments.
The average price per sqm in Lastva is on the lower end, with potential for growth as Budva's outskirts develop. The area is mostly inhabited by long-term residents and is known for its peaceful and rural setting.
The strengths of Lastva include its calm environment and sense of community, but the trade-off is a greater distance from Budva's beaches and city amenities.
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Areas in Budva that are popular and upscale
When looking to buy property in Budva, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.
| Neighborhood | Average Price (€/sqm) | Resident Profile | Strengths | Weaknesses |
|---|---|---|---|---|
| Becici | €3,000 | Wealthy tourists, locals | Luxury amenities, beachfront | High cost, overcrowding |
| Sveti Stefan | €4,000+ | Celebrities, wealthy | Exclusivity, views | Limited accessibility |
| Old Town | €3,500 | Affluent locals, foreigners | Historical charm, vibrancy | Noise, crowded streets |
Becici
Becici is a prestigious area in Budva known for its luxurious resorts and stunning beachfront.
It's expensive due to its high-end amenities and popularity with affluent tourists and locals. Properties in Becici are mostly upscale apartments and villas, with the average price per square meter hovering around €3,000.
You'll find a mix of wealthy tourists and well-to-do locals living in Becici. The area boasts excellent restaurants, nightlife, and beaches, making it highly desirable.
However, the cost of living is high, and it can get overcrowded during peak tourist seasons.
Sveti Stefan
Sveti Stefan, renowned for its iconic island and luxury resort, is another high-end neighborhood in Budva.
This area commands high prices, often exceeding €4,000 per square meter, due to its exclusivity and historical significance.
Properties in Sveti Stefan are a blend of luxury villas and high-end apartments, attracting a clientele of celebrities and the wealthy. Its strengths are its privacy, stunning views, and historical charm.
However, accessibility can be an issue, and there's a limited supply of properties, which keeps prices steep.
The Old Town of Budva
The Old Town of Budva combines historical allure with modern luxury.
It's an expensive area, with property prices averaging around €3,500 per square meter. The neighborhood offers charming old-style apartments and a few renovated houses.
It's popular among both affluent locals and foreigners looking for a mix of history and modernity. The Old Town is vibrant, with numerous shops, restaurants, and cultural sites.
However, it can be noisy, and the narrow streets are often crowded, which might not appeal to those seeking tranquility.
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.
Areas in Budva that emerge as new hotspots
Let's explore these emerging neighborhoods in Budva that, according to our local partners and our customers, are getting quite a bit of buzz lately.
| Neighborhood | Average Price (€/sqm) | Resident Profile | Strengths | Weaknesses |
|---|---|---|---|---|
| Golubovina | €2,000 | Younger crowds, investors | Growth potential, vibrant community | Lacks luxury amenities |
| Velji Vinogradi | €2,500 | Young professionals, families | Community feel, balanced living | Less prestige than central areas |
| Rozino | €2,200 | Young, dynamic residents | Proximity to center, investment potential | Still developing identity |
Golubovina
Golubovina, once a quieter part of Budva, is gaining traction for its more affordable property prices and evolving urban environment.
Initially more residential and less developed, it's now attracting younger crowds and investors due to its lower property prices in Golubovina, averaging around €2,000 per square meter.
This evolution is driven by new cafes, bars, and small businesses popping up, making it more lively and appealing. It's expected that prices will rise as the area develops further, but it will likely remain more affordable than central Budva.
Its strengths lie in its potential for growth and the vibrant community forming there, but it lacks the beachfront and luxury amenities of more established neighborhoods.
Velji Vinogradi
Velji Vinogradi is another up-and-coming area in Budva.
Originally a more traditional residential neighborhood, it has recently seen an influx of new developments and renovations. The average property price in Velji Vinogradi is about €2,500 per square meter, making it more accessible than central Budva.
The area is attracting a diverse mix of residents, from young professionals to families, drawn by its evolving character and more reasonable prices. The trend suggests that prices will continue to rise as the neighborhood modernizes.
Its strengths are its community feel and the balance between urban and residential spaces, though it still lacks the prestige and facilities of prime Budva areas.
Rozino
Rozino, historically less prominent, is now on the radar for property buyers due to its strategic location and ongoing development.
Initially a more subdued area, it's becoming popular for its proximity to Budva's center while offering more affordable living, with prices around €2,200 per square meter.
This trendiness is fueled by new residential and commercial projects, attracting a younger, dynamic crowd. Prices in Rozino are expected to rise steadily, making it a smart investment.
Rozino balances urban convenience with a more laid-back vibe, but it's still developing its identity and amenities compared to more established neighborhoods.
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Top neighborhoods in Budva to invest in property
Areas in Budva with a strong rental demand
If you're considering buying real estate in Budva for renting it out, these neighborhoods with high demand for rentals should be considered.
| Neighborhood | Property Type | Rental Income | Rental Yield | Tips for Higher Income | Weaknesses |
|---|---|---|---|---|---|
| Slovenska Plaza | Two-bedroom apartments | €600-€800/month | 5-7% | Modern amenities, summer season focus | Off-season vacancy |
| Budva Old Town | Studio/One-bedroom | €500-€700/month | 6-8% | Historical features, unique aesthetics | Higher maintenance, parking issues |
| Becici | Three-bedroom/villas | €800-€1000/month | 4-6% | Proximity to beach, family amenities | Distance from main attractions |
Slovenska Plaza
Slovenska Plaza is a bustling area in Budva, attracting a mix of tourists and locals seeking short-term stays, particularly during the summer season.
Apartments in Slovenska Plaza are in high demand due to their proximity to beaches and nightlife. Typically, two-bedroom apartments in Slovenska Plaza are most sought after, catering to small groups or families. You can expect rental incomes around €600-€800 per month for such properties in Slovenska Plaza.
The rental yield hovers around 5-7%. To maximize income and reduce vacancy, consider well-furnished, modern apartments with amenities like Wi-Fi and air conditioning.
However, off-season demand drops significantly, leading to potential vacancies. The area is densely populated, which might not appeal to those seeking quiet retreats.
Budva Old Town
Budva Old Town, known for its historical charm, attracts a more niche market.
In Budva Old Town, rental demand comes from tourists and history enthusiasts looking for short stays. Studio or one-bedroom apartments, especially those with a traditional aesthetic in Budva Old Town, are highly sought after.
Rental income in Budva Old Town can be approximately €500-€700 per month, with yields around 6-8%. Properties with a view of the old town or near local landmarks are particularly lucrative.
To attract higher-paying tenants, focus on properties with unique historical features. However, maintenance costs can be higher due to the age of buildings, and parking can be a challenge.
Becici
Becici is popular for its beachfront properties and family-friendly atmosphere.
In Becici, three-bedroom apartments or small villas are in demand, mainly by families or larger groups. Rental income for such properties in Becici can range from €800 to €1000 per month, with a rental yield of about 4-6%.
Properties with sea views or those close to the beach command higher rents. Investing in properties with kid-friendly amenities can attract more families.
However, this area is slightly away from Budva’s main attractions, which might deter some tourists, and it can be quieter in the off-season.
Don't lose money on your property in Budva
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Areas in Budva where property prices might increase in the future
In these areas in in Budva you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.
| Neighborhood | Property Type | Average Nightly Price | Tips for Higher Income | Weaknesses |
|---|---|---|---|---|
| Slovenska Plaza | Studios/One-bedroom | €50-€70 | Near nightlife, modern amenities | Seasonal demand fluctuation |
| Budva Old Town | Small traditional apartments | €60-€80 | Historical ambiance, modern comforts | Higher maintenance, limited parking |
| Becici | Apartments/Villas | €70-€100 | Family amenities, sea views | Location, off-peak quietness |
Slovenska Plaza
In Slovenska Plaza, the demand for short-term rentals is driven by its vibrant nightlife and beach proximity, appealing mostly to young tourists and party-goers.
Studios and one-bedroom apartments in Slovenska Plaza are popular, especially those with modern amenities like Wi-Fi and air conditioning. The average nightly price in Slovenska Plaza is around €50-€70. Properties near popular clubs or with sea views can command higher prices.
For better rental income, focus on properties with easy access to nightlife and beaches.
A potential drawback is the seasonal nature of demand, with winters seeing a significant drop in occupancy.
Budva Old Town
Budva Old Town is a magnet for short-term renters looking for a blend of history and modern convenience.
Small, traditional apartments or those with unique architectural features are in demand. The average nightly rate in Budva Old Town is about €60-€80. Properties offering a historical ambiance along with modern comforts like good internet connectivity are preferred.
To attract higher-paying short-term tenants, focus on properties that balance old-world charm with contemporary amenities.
However, be mindful of the higher maintenance costs and the limited parking available in this area.
Becici
Becici is ideal for short-term renters seeking a more relaxed, family-oriented environment.
Apartments and small villas, especially those with multiple bedrooms and kid-friendly facilities, are popular. The average nightly rate in Becici ranges from €70 to €100.
Properties offering stunning sea views or direct beach access can yield higher rents. Investing in properties with family-centric amenities, like pools and play areas, can be lucrative.
However, its location slightly away from Budva’s central attractions might not appeal to all tourists, and the area is quieter outside the peak summer months.
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.