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 not a single real estate market but a patchwork of micro-neighborhoods where prices, rental demand, and investment returns can vary dramatically within a 15-minute walk.
This guide breaks down every major area in Budva so you know exactly where the best opportunities are and which spots to avoid in early 2026.
We constantly update this blog post to reflect the latest data and market shifts.
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.
What's the Current Real Estate Market Situation by Area in Budva?
Which areas in Budva have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for property in Budva are Stari Grad (the Old Town), the Zavala peninsula near Dukley Gardens, and the Gospoština slope leading to Mogren beach.
In these premium Budva neighborhoods, typical asking prices range from around €4,000 per square meter at the lower end up to €8,000 per square meter for branded luxury or fully renovated stone apartments in the Old Town.
Each of these high-priced areas commands a premium for different reasons:
- Stari Grad (Old Town): extreme scarcity of units inside medieval walls plus walk-to-everything convenience.
- Zavala peninsula / Dukley zone: private beach access, resort-style amenities, and branded serviced residences.
- Gospoština / Mogren approach: quiet hillside living with direct walking access to Budva's best beaches.
Which areas in Budva have the most affordable property prices in 2026?
As of early 2026, the most affordable neighborhoods for buying property in Budva are Dubovica (both I and II), the hillside areas of Lazi and Maine, Rozino with its neighboring Babilonija district, and the inland villages of Lastva Grbaljska and Krimovica.
In these value-oriented Budva neighborhoods, you can expect to pay between €1,600 and €3,200 per square meter depending on building age, condition, and exact location within each area.
The main trade-offs in these lower-priced areas are distance from the beach (typically a 10 to 20 minute walk or drive), steeper terrain with parking challenges in Lazi and Maine, and less tourist foot traffic which limits short-term rental potential in the inland villages.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Budva Offer the Best Rental Yields?
Which neighborhoods in Budva have the highest gross rental yields in 2026?
As of early 2026, the Budva neighborhoods delivering the highest gross rental yields are Rozino (around 6 to 7 percent), Babilonija (around 5.5 to 6.5 percent), Dubovica I and II (around 5.5 to 6.5 percent), and Podkošljun on its inland side (around 5.5 to 6 percent).
Across Budva as a whole, typical gross rental yields for investment properties range from about 3.5 percent in trophy beachfront locations up to 7 percent in the best value-oriented neighborhoods with strong tenant demand.
Here is why these top-yielding Budva neighborhoods outperform the rest:
- Rozino: year-round tenant demand from locals and expats combined with prices well below beachfront.
- Babilonija: good unit sizes for the money and walkable access to everyday services.
- Dubovica I and II: strong family rental demand with significantly lower purchase prices.
- Podkošljun (inland): solid returns when parking and walkability are good, lower entry cost.
Finally, please note that we cover the rental yields in Budva here.
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Which Areas in Budva Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Budva perform best on Airbnb in 2026?
As of early 2026, the top-performing Budva neighborhoods on Airbnb are Stari Grad and the marina edge (highest occupancy and rates), the Mogren approach in Gospoština (strong couple demand), the beachfront band of Bečići (excellent family bookings), and Rafailovići along the seafront promenade.
In these best-performing Budva short-term rental areas, top properties can generate between €1,500 and €4,000 per month during peak summer season, though annual averages are lower due to Budva's seasonal tourism pattern.
Each of these neighborhoods succeeds on Airbnb for specific reasons:
- Stari Grad / marina edge: constant tourist preference for the "Budva postcard" location and walkability.
- Gospoština / Mogren approach: quieter than the party strip but near the best beaches.
- Bečići beachfront (first 1 to 3 rows): family-friendly with longer stays and strong summer demand.
- Rafailovići seafront: dining scene and beach access create a loyal "return visitor" profile.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Budva.
Which tourist areas in Budva are becoming oversaturated with short-term rentals?
The Budva areas showing signs of short-term rental oversaturation are the Slovenska Plaža apartment clusters along the main beach strip, the large new-build complexes in inland Bečići, and some of the dense residential blocks in central Budva away from the Old Town.
In these oversaturated Budva zones, you will find hundreds of nearly identical listings competing for the same guests, with AirDNA data showing over 6,000 active vacation rentals across the broader Budva market.
The clearest sign of oversaturation is aggressive price competition during shoulder season (May, June, September, October) even when July and August numbers look healthy, which compresses annual returns significantly for undifferentiated properties.
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 Areas in Budva Are Best for Long-Term Rentals?
Which neighborhoods in Budva have the strongest demand for long-term tenants?
The Budva neighborhoods with the strongest long-term rental demand are Rozino, Babilonija, Dubovica I and II, and Podkošljun (the areas with good parking and reasonable slopes).
In these high-demand Budva rental areas, well-priced apartments typically rent within two to four weeks, and vacancy rates remain low even during the winter off-season when tourist areas empty out.
Different tenant profiles drive demand in each of these Budva neighborhoods:
- Rozino: young professionals and couples seeking year-round "normal city" living with services.
- Babilonija: similar profile to Rozino with good unit sizes attracting small families.
- Dubovica I and II: families with children who need space and quieter surroundings.
- Podkošljun: mixed tenants who value the balance of access and relative affordability.
What makes these neighborhoods especially attractive to long-term tenants in Budva is their combination of walkable services (groceries, cafes, pharmacies), escape from summer tourist congestion, and reasonable commute times to workplaces across the Budva municipality.
Finally, please note that we provide a very granular rental analysis in our property pack about Budva.
What are the average long-term monthly rents by neighborhood in Budva in 2026?
As of early 2026, average long-term monthly rents in Budva range from around €350 for a studio in value areas like Dubovica up to €1,700 for a two-bedroom apartment in prime locations like Stari Grad or Gospoština.
In Budva's most affordable rental neighborhoods (Dubovica, Lazi, Maine), entry-level studios rent for €350 to €550 per month, one-bedroom apartments for €450 to €750, and two-bedroom units for €650 to €1,050.
In Budva's mid-range rental neighborhoods (Rozino, Babilonija, Podkošljun), studios typically rent for €420 to €650 per month, one-bedroom apartments for €550 to €850, and two-bedroom units for €750 to €1,200.
In Budva's premium rental neighborhoods (Stari Grad, Gospoština, Zavala edge), studios command €550 to €850 per month, one-bedroom apartments €750 to €1,200, and two-bedroom units €1,050 to €1,700.
You may want to check our latest analysis about the rents in Budva here.
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Which Are the Up-and-Coming Areas to Invest in Budva?
Which neighborhoods in Budva are gentrifying and attracting new investors in 2026?
As of early 2026, the Budva neighborhoods showing the clearest gentrification patterns and attracting new investor attention are Dubovica II (and upper Dubovica), select streets in Lazi where new buildings have solved parking and elevator issues, and inland Bečići where you can still walk to the beach without paying beachfront prices.
These gentrifying Budva neighborhoods have experienced annual price appreciation of roughly 10 to 15 percent over the past two years as new construction replaces older stock and building quality improves across the board.
Which areas in Budva have major infrastructure projects planned that will boost prices?
The Budva areas most sensitive to infrastructure developments are the Zavala to Bečići corridor (where connectivity improvements amplify price reactions) and the hillside access roads serving Dubovica and Lazi (where even small road or parking upgrades can materially change livability).
Infrastructure planning in Budva is managed through Detailed Urban Plans (DUPs), and you can verify what is permitted in your target area through the Montenegro Real Estate Administration and the Budva municipality planning portal, though local documentation now points toward the national registry system.
Historically in Budva, areas that gained improved road access or parking facilities have seen price increases of 15 to 25 percent within two to three years of project completion, making infrastructure timing a valuable signal for investors.
You'll find our latest property market analysis about Budva here.
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.
Which Areas in Budva Should I Avoid as a Property Investor?
Which neighborhoods in Budva with lots of problems I should avoid and why?
The Budva areas that present the most problems for property investors in 2026 are highly homogenous apartment clusters along the Slovenska zone, steep hillside pockets in Lazi and Maine without proper parking, and any building with unclear legalization or permit history (which can occur anywhere in the municipality).
Here are the specific problems affecting each of these Budva areas:
- Slovenska zone apartment clusters: too many identical units create price wars in shoulder season.
- Steep Lazi/Maine pockets without parking: tenant resistance and resale friction, especially for families.
- Buildings with unclear permits: the number one foreign buyer risk in Montenegro is legal complications.
For any of these Budva neighborhoods to become viable, the Slovenska clusters would need significant differentiation or reduced supply, Lazi and Maine would need parking and access infrastructure investment, and legally unclear properties would need full resolution through the official cadastre verification process.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Budva.
Which areas in Budva have stagnant or declining property prices as of 2026?
As of early 2026, Budva is not experiencing broad price declines (official data shows the coastal region rose over 20 percent year-on-year into 2025), but specific micro-areas can stagnate in real terms when supply expanded too fast relative to demand.
The Budva areas most likely to see stagnation (flat or below-inflation growth) are oversupplied pockets in inland Bečići where many investors bought identical floor plans, and large blocky inland Budva zones with little architectural differentiation.
Here is the main cause of stagnation in each of these Budva areas:
- Inland Bečići new-build clusters: too many similar units launched simultaneously, diluting pricing power.
- Dense inland Budva blocks: lack year-round tenant depth and cannot compete with beachfront for tourists.
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Which Areas in Budva Have the Best Long-Term Appreciation Potential?
Which areas in Budva have historically appreciated the most recently?
The Budva areas that have appreciated most strongly over the past five to ten years are Stari Grad and its immediate perimeter, the Mogren slope and Gospoština, the Zavala peninsula with its branded luxury developments, and the prestige pockets around Pržno and Sveti Stefan.
Here is the approximate appreciation these top-performing Budva areas have achieved:
- Stari Grad / Old Town perimeter: roughly 80 to 120 percent total appreciation over the past decade.
- Gospoština / Mogren slope: approximately 60 to 90 percent appreciation driven by beach access scarcity.
- Zavala / Dukley zone: around 70 to 100 percent appreciation as branded product established the market.
- Pržno / Sveti Stefan view corridors: roughly 50 to 80 percent appreciation on prestige and natural constraints.
The main driver behind above-average appreciation in these Budva areas is genuine scarcity: limited buildable land, protected Old Town status, branded developments with controlled supply, and natural terrain constraints that cannot be replicated elsewhere in the municipality.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Budva.
Which neighborhoods in Budva are expected to see price growth in coming years?
The Budva neighborhoods expected to see the strongest price growth over the coming years are Rozino and Babilonija (benefiting from Budva's shift toward year-round living), Dubovica II (riding the quality upgrade cycle), and walkable inland Bečići (capturing beach demand without beachfront prices).
Here are the projected annual growth rates for these high-potential Budva neighborhoods:
- Rozino and Babilonija: projected 8 to 12 percent annual growth as year-round demand increases.
- Dubovica II: expected 7 to 10 percent annual growth as new builds replace older stock.
- Walkable inland Bečići: anticipated 6 to 9 percent annual growth with beach proximity value.
The single most important catalyst expected to drive future price growth in these Budva neighborhoods is the continued flow of foreign capital into Montenegro's real estate sector, which official data shows represents a dominant share of the country's foreign direct investment.
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 Do Locals and Expats Really Think About Different Areas in Budva?
Which areas in Budva do local residents consider the most desirable to live?
Local Budva residents generally consider Rozino, Babilonija, and Dubovica (especially for families) to be the most desirable neighborhoods for year-round living.
Here is what makes each of these areas most desirable to locals in Budva:
- Rozino: walkable services, schools nearby, and escape from peak-season tourist congestion.
- Babilonija: good apartment sizes for the money and a "real neighborhood" atmosphere.
- Dubovica: space for families, quieter surroundings, and better value per square meter.
These locally-preferred Budva areas tend to attract middle-class Montenegrin families, young professionals working in the Budva tourism industry, and long-term residents who prioritize everyday convenience over beach proximity.
Local preferences in Budva often differ from what foreign investors target because locals prioritize year-round livability and practical services, while foreigners tend to focus on beachfront glamour and short-term rental potential.
Which neighborhoods in Budva have the best reputation among expat communities?
The Budva neighborhoods with the best reputation among expats are the Bečići beachfront, Rafailovići, Pržno, and Gospoština for lifestyle-focused expats, while Rozino and Babilonija attract expats seeking practical year-round living.
Here is why expats prefer these Budva neighborhoods:
- Bečići beachfront: easy beach access, family-friendly, and established expat community presence.
- Rafailovići: dining scene, promenade lifestyle, and a good balance of activity and calm.
- Pržno: quieter village feel with premium positioning and natural beauty.
- Gospoština: walkable to Old Town and beaches but quieter than the main tourist strip.
- Rozino / Babilonija: practical services and year-round functionality for working expats.
The expat profile in Budva's popular neighborhoods tends to split between retirees and lifestyle seekers in the coastal areas (Bečići, Pržno, Gospoština) and remote workers or business owners in the more practical inland neighborhoods (Rozino, Babilonija).
Which areas in Budva do locals say are overhyped by foreign buyers?
The Budva areas that locals commonly consider overhyped by foreign buyers are Stari Grad (the Old Town) for tiny units with high maintenance surprises, ultra-premium branded zones like parts of Zavala where amenities may not translate to resale value, and some beachfront strips where the "view premium" exceeds practical utility.
Here is why locals believe these Budva areas are overvalued:
- Stari Grad (Old Town): foreigners pay premium for charm but face renovation restrictions and small layouts.
- Ultra-branded Zavala developments: amenity fees and premium pricing may not be recovered on resale.
- Generic beachfront strips: view premiums often exceed what the location delivers in daily convenience.
Foreign buyers typically see romantic Old Town charm, resort-style amenities, and sea views as high-value features, while locals focus more on practical considerations like unit size, parking, year-round services, and total cost of ownership.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Budva.
Which areas in Budva are considered boring or undesirable by residents?
The Budva areas that residents commonly consider boring or undesirable are certain hillside pockets in Lazi and Maine where access is difficult, dense inland apartment blocks near the main summer strip that suffer from noise without beach benefits, and some large homogenous new-build clusters that lack neighborhood character.
Here is the main reason residents find these Budva areas unappealing:
- Difficult Lazi/Maine hillside pockets: steep access, parking struggles, and isolation in winter months.
- Dense inland blocks near Slovenska: summer noise and congestion without the beach convenience payoff.
- Homogenous new-build clusters: no character, no community feel, and identical to dozens of other buildings.
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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 Q2 2025 New-Build Prices | Official statistics office publishing contract-based sale prices. | We used it as the hard anchor for coastal region pricing in Budva. We then scaled neighborhood ranges based on beach proximity and scarcity factors. |
| MONSTAT 2024 Annual Housing Report | Annual official benchmark that smooths out quarterly fluctuations. | We used it to validate that coastal pricing was structurally higher than inland Montenegro. We treated it as a trend baseline for historical comparison. |
| MONSTAT Tourism Arrivals 2024 | Official nationwide tourism demand data from the statistics office. | We used it to frame why Budva's rental market is tourism-driven. We justified why short-term rentals can outperform long-term rents in peak season. |
| AirDNA Budva Market Overview | Leading short-term rental data provider with global coverage. | We used it for occupancy and average daily rate benchmarks in Budva. We compared neighborhood profiles through a demand lens rather than assumptions. |
| Global Property Guide Montenegro | Long-running property research publisher with consistent methodology. | We used it as an independent check on typical gross yields. We ensured our rent and price combinations produced realistic yield percentages. |
| Central Bank of Montenegro Annual Report | Authoritative source for macro and financial stability context. | We used it for macro framing around foreign capital flows. We treated it as the reality check behind Budva's price momentum. |
| U.S. State Department Investment Climate 2025 | High-credibility external government review with hard numbers. | We used it to corroborate how dominant real estate is in Montenegro's FDI inflows. We triangulated so we did not rely only on local narratives. |
| Montenegro Real Estate Administration | Official institution for cadastral records and property registration. | We used it to ground the ownership verification section in official process reality. We framed due diligence steps specific to Montenegro. |
| EuroGeographics Montenegro Member Page | European association confirming the cadastral authority's legitimacy. | We used it as a legitimacy cross-check for the cadastre institution. We reassured foreign buyers about what the official registry is. |
| SeeNews Montenegro Pricing Report | Regional financial newswire clearly referencing official MONSTAT data. | We used it as secondary confirmation of timing and year-on-year direction. We reduced risk of misreading the official release schedule. |
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