Authored by the expert who managed and guided the team behind the Montenegro Property Pack
Everything you need to know before buying real estate is included in our Montenegro Property Pack
Montenegro's property market is attracting serious attention from international buyers as we reach mid-2025.
With coastal prices stabilizing after years of rapid growth and new developments reshaping the landscape, many investors and lifestyle buyers are wondering if now is the right time to make their move.
If you want to go deeper, you can check our pack of documents related to the real estate market in Montenegro, based on reliable facts and data, not opinions or rumors.
Montenegro offers diverse property options from coastal apartments to mountain chalets, with prices ranging from €1,100-€10,000 per square meter depending on location and luxury level.
The market is expected to grow 5-6% annually through 2029, making it an attractive option for both lifestyle buyers and investors seeking rental yields of 4-10%.
| Property Type | Price Range (€/m²) | Best Locations |
|---|---|---|
| Budget Coastal | 1,100-1,900 | Ulcinj, Bar |
| Mid-Range Coastal | 2,400-3,100 | Petrovac, Herceg Novi |
| Premium Coastal | 2,700-4,100 | Budva, Kotor, Tivat |
| Luxury Developments | 5,000-10,000+ | Porto Montenegro, Luštica Bay |
| Mountain Properties | 1,200-1,400 | Kolasin, Zabljak |
| Capital City | 1,520-2,250 | Podgorica |
| Up-and-Coming | 1,600-2,500 | Bar, Rafailovici |
What properties can you actually buy in Montenegro—apartments, houses, land, or something else?
Montenegro's real estate market offers something for every buyer, from beachfront apartments to mountain retreats.
You can purchase apartments in coastal cities or mountain towns, traditional stone houses in historic areas, modern villas with sea views, urban or development land plots, and even commercial properties like shops or small hotels.
The most popular choices among foreign buyers are coastal apartments in cities like Budva and Kotor, luxury villas in exclusive developments, and increasingly, mountain properties in ski resort areas.
Foreigners can freely buy most property types except agricultural land and forests, which require purchase through a registered company.
As of June 2025, the market is particularly strong for residential properties, with new developments offering modern amenities and investment potential.
Where are the best places to buy—what's affordable, upscale, and trending?
Montenegro's property landscape varies dramatically from budget-friendly southern beaches to ultra-luxury marina developments.
For affordable options, Bar and Ulcinj offer coastal properties starting from €1,100-€2,500 per square meter, providing excellent value for budget-conscious buyers.
The upscale market centers around Porto Montenegro in Tivat (€7,000-€10,000/m²), Luštica Bay, and exclusive areas like Sveti Stefan and Dukley Gardens in Budva.
Up-and-coming areas include Bar's expanding waterfront, Rafailovici near Budva, and mountain towns like Kolasin and Zabljak, which are attracting eco-tourism and winter sports enthusiasts.
It's something we develop in our Montenegro property pack.
How much do properties cost now, and how have prices changed?
| Location | Current Price (€/m²) | Year-on-Year Change |
|---|---|---|
| Tivat (average) | 2,800-5,400 | +8-9% |
| Kotor | 2,500-3,800 | +8-9% |
| Budva | 2,450-3,700 | +8-9% |
| Herceg Novi | 1,900-3,000 | +7-8% |
| Bar | 1,600-2,200 | +10-12% |
| Podgorica | 1,520-2,250 | +6-7% |
| Ulcinj | 1,100-1,900 | +12-15% |
Property prices in Montenegro rose 8-9% year-on-year in 2024, following even stronger growth of 20-30% annually in 2022-2023.
The national average for new dwellings reached €2,158/m² in Q2 2025, with coastal properties commanding significant premiums.
What's expected for Montenegro's property market in 2025 and beyond?
Montenegro's real estate market is projected to grow 5-6% annually through 2029, driven by tourism expansion and infrastructure development.
Prices in premium coastal locations are expected to stabilize at current high levels in 2025, partly due to the introduction of progressive property taxes affecting luxury properties.
The rental market, which saw dramatic 60% increases since 2021, is anticipated to stabilize as new supply comes online, particularly in Tivat and Kotor.
Major infrastructure projects, including highway improvements and marina expansions, will likely boost property values in connected areas.
Foreign investment remains strong, with EU citizens and digital nomads increasingly choosing Montenegro for its favorable tax regime and Mediterranean lifestyle.
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Should you buy or rent in Montenegro in 2025?
The buy-versus-rent decision in Montenegro depends on your timeline and investment goals.
Buying makes sense if you plan to stay more than 3 years, want to establish residency, or seek capital appreciation—property values in coastal areas have consistently outpaced inflation.
Renting offers flexibility and lower upfront costs, typically €500-€1,500 monthly for quality apartments, but you'll face rising rents, especially in tourist hotspots where prices jumped 60% since 2021.
For investment purposes, buying provides rental yields of 4-10% depending on location and property type, with short-term rentals in Budva and Kotor offering the highest returns.
Consider that property ownership can support your temporary residence permit application, adding value beyond pure investment returns.
How does buying property work step-by-step for foreigners?
The property buying process in Montenegro is straightforward but requires careful attention to legal details.
- Select your property through a licensed agent and conduct viewing visits
- Perform due diligence—verify ownership, check for debts, and confirm building permits
- Obtain a Tax Identification Number (TIN) from the tax authority
- Pay a 10% deposit to reserve the property
- Sign a preliminary purchase agreement outlining terms and payment schedule
- Complete the final contract at a notary office with both parties present
- Pay the 3% property transfer tax (higher for luxury properties)
- Register ownership with the Real Estate Cadastre
- Receive your title deed confirming ownership
Total costs including taxes, notary fees, and registration typically add 4-5% to the purchase price.
Where can you find properties—trusted agencies and websites?
Montenegro has several reliable platforms and agencies for property searches.
Leading online portals include Realitica.com and Estitor.com for comprehensive listings, Montenegro Prospects for curated selections, and PropertyUnder100k.com for budget options.
International agencies like Sotheby's International Realty Montenegro and Savills serve luxury buyers, while local experts like CMM Montenegro, Leo Estate, and Lako Invest offer personalized service.
For specific developments, contact sales offices directly at Porto Montenegro, Luštica Bay, or Portonovi for the best selection and prices.
It's something we develop in our Montenegro property pack.
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 can you get for €100k, €250k, €500k, or €1M?
| Budget | Coastal Properties | Mountain/Inland Properties |
|---|---|---|
| €100,000 | Studio in Ulcinj, 1-bed apartment in Bar (older building) | 2-bed apartment in Niksic, small house in rural areas |
| €250,000 | Modern 2-bed apartment in Budva/Herceg Novi (not seafront) | Family house in Podgorica suburbs, mountain chalet in Kolasin |
| €500,000 | New 3-bed apartment with sea view in Kotor, small villa in Bar | Luxury villa in Podgorica, large mountain property with land |
| €1,000,000 | Seafront villa in Budva, penthouse in Porto Montenegro | Estate with multiple buildings, development land |
These are current market examples as of June 2025, with prices varying based on exact location, condition, and amenities.
What mistakes do buyers make—and how can you avoid them?
The most costly mistake is skipping proper due diligence on property titles and permits.
Many buyers fail to check for existing debts on properties, unpaid utilities, or missing construction permits—always hire a local lawyer to verify all documentation before signing anything.
Foreigners sometimes attempt to buy agricultural land directly, which is illegal—you must establish a company for such purchases.
Underestimating total costs catches many off-guard; factor in the 3% transfer tax, notary fees, annual property tax (0.25-1%), and potential renovation costs for older properties.
Some investors overpay for luxury developments without comparing rental yields—premium properties often deliver lower returns than mid-market options.
What's living in Montenegro like for foreigners and expats?
Montenegro offers an attractive Mediterranean lifestyle at reasonable costs for European standards.
Monthly living expenses range from €700-900 for singles to €2,000-2,800 for families, excluding accommodation.
The expat community thrives in coastal cities, particularly Budva, Kotor, and Tivat, with active social groups, international schools, and English-speaking services.
Healthcare combines affordable public options with quality private clinics—most expats opt for private insurance costing €50-150 monthly.
Property ownership supports residence permit applications, and the new digital nomad visa program makes long-term stays easier for remote workers.
What about long-term rentals—best areas, tenants, and returns?
Long-term rental properties in Montenegro deliver steady returns in the right locations.
- Kotor Bay attracts professionals and expats, offering 5-7% gross yields
- Budva serves tourists and seasonal workers, with higher turnover but 6-8% returns
- Tivat's yachting community pays premium rents for quality apartments near Porto Montenegro
- Bar appeals to families and retirees seeking affordable coastal living
- Podgorica provides stable tenants (government workers, students) with 4-6% yields
Rental income is taxed at a flat 15%, and most landlords require 1-2 months' deposit plus advance rent.
It's something we develop in our Montenegro property pack.
What's the situation with short-term rentals—rules, hotspots, and earnings?
Short-term rentals remain profitable in Montenegro's tourist areas, though regulations are tightening.
Top locations include Budva (€100-300/night in season), Kotor Old Town (€150-400/night), and Tivat near Porto Montenegro (€200-500/night).
You must register with local authorities, collect tourist tax (€1-2/night), and some municipalities require special permits—check local rules as enforcement increased in 2024.
Peak season (June-September) occupancy reaches 80-90% in prime locations, dropping to 20-30% in winter except ski areas.
Annual gross yields of 8-10% are achievable with professional management, though you'll need to budget for cleaning, maintenance, and platform fees totaling 20-30% of revenue.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Montenegro's property market in 2025 presents compelling opportunities for both lifestyle buyers and investors.
With prices stabilizing after rapid growth, diverse property options from €100,000 beach apartments to million-euro villas, and rental yields reaching 10% in prime locations, the market offers something for every budget and goal. Success requires careful due diligence, understanding local regulations, and choosing the right location for your specific needs.
Sources
- Montenegro Properties
- Trading Economics - Montenegro Housing Index
- Global Property Guide - Montenegro Price History
- Investropa - Montenegro Real Estate Market Analysis
- Immigrant Invest - Montenegro Property Guide
- Lustica Bay - Buying Property Guide 2025
- The Wandering Investor - Montenegro Real Estate
- Montenegro Pulse - Property Buying Guide
- Sotheby's International Realty Montenegro
- Savills Montenegro