All sources have been thoroughly verified for credibility. Furthermore, an industry specialist has reviewed and approved the final article.
Yes, the analysis of Kotor's property market is included in our pack
Thinking about buying a 3-bedroom apartment in the Old Town of Kotor? It’s a charming area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other parts of Kotor Bay where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Montenegro Property Pack.
Will property prices increase in Kotor in 2025?
Yes, property prices in Kotor are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Kotor remains one of the most attractive locations in Montenegro for both domestic and international investors.
Sure, there are some economic challenges like inflation and rising interest rates, but the main drivers behind Kotor’s price growth remain strong.
Demand, especially in the scenic coastal areas, continues to outpace supply, making any major price dips unlikely. Additionally, Kotor's status as a UNESCO World Heritage site and its natural beauty keep drawing in buyers from around the world.
Signals pointing to a property price increase in Kotor
Here are some factors suggesting prices could increase:
The limited availability of land for new developments in Kotor, particularly in the historic and coastal areas, is expected to keep supply tight. This scarcity is likely to drive up property prices as demand remains strong.
Kotor's growing reputation as a luxury tourist destination is attracting high-net-worth individuals looking for vacation homes, which is expected to boost demand for premium properties and push prices higher.
The Montenegrin government's continued investment in infrastructure, such as road improvements and enhanced public services, is expected to make Kotor more accessible and attractive, thereby increasing property values.
The increasing popularity of Montenegro as a destination for digital nomads and remote workers is expected to bolster demand for residential properties in Kotor, particularly those offering modern amenities and connectivity.
Kotor's cultural and historical significance, combined with its stunning natural surroundings, continues to attract international buyers, ensuring a steady demand for properties in the area.
Signals pointing to a property price decrease in Kotor
Here are some factors suggesting prices could fall:
Economic uncertainties, such as potential fluctuations in the Eurozone economy, could impact buyer confidence and reduce demand for properties in Kotor.
Rising interest rates may make it more difficult for potential buyers to secure affordable financing, which could dampen demand and put downward pressure on property prices.
Increased competition from other emerging tourist destinations in the region could divert potential buyers away from Kotor, potentially affecting property demand and prices.
Get fresh and reliable information about the market in Montenegro
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
If property prices go up in Kotor, how much would they increase by?
If real estate prices in Kotor were to rise in 2025, the increase would likely be below 3% of their 2024 values.
Typically, real estate in stable, mature markets like Kotor appreciates by approximately 1% to 3% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming stone house in the Old Town for 200,000 euros today, don't be surprised if it's priced between 202,000 and 206,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Kotor real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 1%, 2%, and 3%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (1% increase) | Price in 2025 (2% increase) | Price in 2025 (3% increase) |
|---|---|---|---|---|
| Stone House (100 sqm / 1,076 sqft) | €200,000 | €202,000 | €204,000 | €206,000 |
| Modern Apartment (80 sqm / 861 sqft) | €150,000 | €151,500 | €153,000 | €154,500 |
| Luxury Villa (200 sqm / 2,153 sqft) | €500,000 | €505,000 | €510,000 | €515,000 |
| Studio (40 sqm / 431 sqft) | €80,000 | €80,800 | €81,600 | €82,400 |
| Seaside Apartment (70 sqm / 753 sqft) | €180,000 | €181,800 | €183,600 | €185,400 |
| Townhouse (120 sqm / 1,292 sqft) | €250,000 | €252,500 | €255,000 | €257,500 |
| Investment Property (60 sqm / 646 sqft) | €120,000 | €121,200 | €122,400 | €123,600 |
Everything you need to know is included in our Property Pack for Kotor
If real estate prices go up in Kotor, which areas are likely to see the biggest increases?
Today, people who want to move to Kotor are looking for the blend of historical charm and modern amenities, which the Old Town offers. Hence, we could see a price increase there in 2025.
Additionally, there's been a growing interest in vibrant, scenic neighborhoods, and Dobrota has really become popular.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Kotor market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Old Town | High | The historic appeal combined with new luxury accommodations and its increasing attraction to international buyers as travel normalizes post-pandemic, driving demand. |
| Dobrota | High | Expected rise due to its scenic waterfront views, limited housing stock, and growing demand for prime properties in Kotor. |
| Muo | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Prčanj | Medium | The shift towards eco-friendly living and new mixed-use developments are driving demand for residential properties in this picturesque area. |
| Risan | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Perast | Medium | Investment in local infrastructure, such as the renovation of historic areas, is boosting long-term value. |
| Stoliv | Medium-High | With new cultural and commercial spaces being developed, this charming neighborhood is seeing increased demand from both residents and investors. |
| Kavač | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Tivat | Medium-High | Its proximity to Kotor, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Lepetane | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Orahovac | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Kotor Bay | High | Upcoming restoration projects and high-profile cultural initiatives are driving a renewed focus on this scenic, historic location. |
-The best areas to buy a property in Kotor
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Kotor?
In 2025, Kotor real estate trends focus on waterfront properties, historic homes with modern renovations, eco-friendly villas, and properties with panoramic views—all driving higher demand and prices. Here is a summary.
- Waterfront Properties:
With Kotor's stunning bay views, waterfront properties are highly sought after. These homes offer direct access to the Adriatic Sea and are popular among both locals and international buyers, making them a prime investment in 2025.
- Historic Homes with Modern Renovations:
Kotor's rich history and UNESCO World Heritage status make its historic homes particularly attractive. Properties that have been modernized while preserving their historical charm are in high demand, especially among those looking for unique living spaces.
- Eco-Friendly Villas:
As sustainability becomes a priority, eco-friendly villas with solar panels and energy-efficient systems are gaining popularity. These properties appeal to environmentally conscious buyers and are expected to see significant value appreciation.
- Properties with Panoramic Views:
In Kotor, properties offering breathtaking views of the bay and surrounding mountains are highly desirable. Such features provide a serene escape and are likely to drive up property values as more people seek tranquil living environments.
Make a profitable investment in Montenegro
Better information leads to better decisions. Save time and money. Download our guide.
