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Best areas to buy and invest in property in Kotor

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property investment Kotor

Yes, the analysis of Kotor's property market is included in our pack

The question of 'the best neighborhood to buy a property in Kotor' 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 Kotor 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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buying property in Kotor

How is the real estate market in Kotor?

The real estate market in Kotor, a picturesque city in Montenegro, is quite dynamic and vibrant, attracting a diverse range of buyers, especially foreigners.

One of the major strengths of Kotor lies in its unique blend of natural beauty and historical significance. Nestled along the Adriatic coast, Kotor boasts an impressive landscape with stunning views of the Bay of Kotor, which is a UNESCO World Heritage site. This feature is quite rare and sets Kotor apart from many other coastal cities.

The city's well-preserved medieval architecture and vibrant cultural scene add to its allure, making it a magnet for those who appreciate history and culture.

People are drawn to buy property in Kotor not only for its beauty and cultural heritage but also for the lifestyle it offers. The city has a tranquil yet lively atmosphere, with an array of cafes, restaurants, and shops, along with numerous festivals and events throughout the year.

The combination of natural and cultural elements creates a unique living experience that is hard to find elsewhere.

The types of people looking to buy in Kotor are diverse. They include retirees seeking a peaceful place to relax, investors attracted by the city's tourism potential, and individuals or families looking for a scenic place to live or vacation.

Foreign interest, particularly from Europe and Russia, has been notably high. This is due to Kotor's growing reputation as a tourist destination, its relatively affordable real estate compared to other European coastal cities, and the potential for rental income from the robust tourist market.

The real estate market in Kotor is dynamic, with one indicative data point being the steady increase in property prices over recent years. This increase reflects the growing demand and the city's rising profile as a premier destination.

A unique and positive aspect of properties in Kotor is their architectural style. Many properties, especially in the old town, feature historical Venetian architecture, which is not only aesthetically pleasing but also rich in cultural history.

This architectural charm is a unique selling point, differentiating Kotor's properties from those in other cities.

Looking towards the future, there are several reasons why properties in Kotor will likely continue to gain value.

Firstly, the ongoing development and modernization while preserving the historical integrity of the city make it an increasingly attractive place to live and visit.

Secondly, Montenegro's potential future accession to the European Union could increase foreign investment and demand for property.

Lastly, Kotor's increasing popularity as a tourist destination will likely continue to drive demand for both residential and rental properties.

Top neighborhoods in Kotor to consider for living

Areas in Kotor that are budget-friendly

If you're looking to buy property in Kotor 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 Property Types Average Price per Sqm Residents Strengths Weaknesses
Dobrota Old apartments, small houses Lower than central Kotor Mix of locals and new residents Tranquil, growing amenities Less lively, fewer attractions
Risan Traditional houses, newer apartments Competitive Local families, expats Authentic feel, natural beauty Lacks modern amenities
Prcanj Old stone houses, newer apartments Reasonable Close-knit local community, foreigners Peaceful, stunning views Less accessible, limited options


This area is known for being more affordable due to its slightly remote location from the central tourist hubs.

However, its property values might see a rise due to ongoing development projects aimed at enhancing connectivity and infrastructure. The properties in Dobrota mainly consist of older apartments and small houses in Dobrota, with the average price per square meter being relatively lower compared to Kotor's central areas.

The residents are a mix of long-term locals and newer residents attracted by the lower costs.

The strengths of Dobrota include its tranquil environment and growing amenities, but it's less lively compared to central Kotor and has fewer tourist attractions.


Risan is budget-friendly primarily because it's less known among tourists, thus property prices are lower.

However, with increasing interest in off-the-beaten-path destinations, property values are expected to rise. The area predominantly offers traditional houses and some newer apartment buildings.

The average price per square meter in Risan is competitive, making it a great option for budget buyers. The population is a blend of local families and expats looking for a quieter lifestyle.

Risan's strengths are its authentic Montenegrin feel and natural beauty, but it lacks some of the modern amenities found in more developed areas.


Prcanj offers affordability due to its smaller size and lesser-known status.

This could change as more people seek properties away from crowded centers, potentially increasing its real estate value.

Properties in Prcanj are a mix of old stone houses and newer apartments, with prices per square meter being quite reasonable. The area is inhabited by a close-knit community of locals and a few foreigners.

Prcanj's charm lies in its peaceful ambiance and stunning views, but it's less accessible and has limited shopping and dining options compared to central Kotor.

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Areas in Kotor that are popular and upscale

When looking to buy property in Kotor, 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 per Sqm Property Type Resident Profile Strengths Weaknesses
Stari Grad High Historic apartments, townhouses Affluent tourists, wealthy locals Historical, cultural scene Limited parking, crowded
Dobrota High Luxurious villas Affluent professionals, retirees Scenic beauty, tranquility Less central, varying amenities
Muovo Moderately high Modern apartments Young professionals, families Modern infrastructure Lacks historic charm

Stari Grad (Old Town)

Stari Grad is one of Kotor's most expensive neighborhoods.

Known for its historical architecture and vibrant cultural scene, it's a hub for affluent tourists and wealthy locals. Properties in Stari Grad are mainly historic apartments and townhouses. The average price per square meter in Stari Grad is quite high, reflecting the area's desirability.

Residents in Stari Grad are typically well-off, often involved in the arts or business sectors. The strengths of Stari Grad include its rich history, lively atmosphere, and proximity to key attractions.

However, its weaknesses lie in the limited parking and crowded streets, especially during tourist season. The hype around Stari Grad is likely to remain due to its unique charm and historical significance.


Yes, we named it in the budget-friendly neighborhood.

However, Dobrota also has an upscale area, famous for its stunning sea views and luxurious villas.

It's slightly less expensive than Stari Grad but still commands high prices. The area is known for spacious properties, often with gardens and pools. The average price per square meter in these parts of Dobrota is high, but you get more space compared to Stari Grad.

It's popular among affluent professionals and retirees. As said before, the strengths of Dobrota are its tranquility, scenic beauty, and quality of life.

However, it's less central than Stari Grad, and some parts lack amenities. The area's popularity is expected to continue, as it offers a balance of luxury and peace.


Muovo is a modern, upscale neighborhood, known for its contemporary apartments and amenities.

It's expensive, but slightly more affordable than Stari Grad and Dobrota. The properties in Muovo are modern, with amenities like gyms and pools. The average price per square meter in Muovo reflects the modernity and convenience of the area.

Muovo is popular with younger professionals and families. Its strengths include modern infrastructure and proximity to commercial areas.

However, it lacks the historic charm of Stari Grad and the natural beauty of Dobrota. Muovo's popularity is likely to grow as Kotor modernizes and expands.

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Areas in Kotor that emerge as new hotspots

Let's explore these emerging neighborhoods in Kotor that, according to our local partners and our customers, are getting quite a bit of buzz lately.

Neighborhood Current Price Trend Appeal Factor Resident Profile Strengths Weaknesses
Prcanj Rising Serenity, affordability Young families, remote workers Natural beauty, relaxed vibe Limited amenities
Ljuta Rising Trendy, artistic Young professionals, artists Artistic vibe, community feel Construction, changing demographics
Perast Rising Maritime heritage, tranquility Retirees, entrepreneurs Waterfront, cultural richness Limited parking, seasonal crowds


Initially a quiet residential area, Prcanj is gaining popularity for its serene environment and affordable housing options.

It's becoming trendy for those seeking a blend of tranquility and accessibility. The prices in Prcanj are cheaper than in the main upscale areas due to its relative obscurity and distance from the city center. However, recent developments and increased interest are driving up prices, expected to rise steadily.

Prcanj is attracting a mix of young families and remote workers, drawn by its peaceful setting and lower living costs. Strengths include its natural beauty and relaxed vibe, while weaknesses are limited amenities and public transport options.

The neighborhood is likely to keep gaining popularity as more people seek quieter, more affordable living spaces outside the bustling city center.


Ljuta, once known for its traditional charm, is now emerging as a trendy spot, especially among young professionals and artists.

The area's evolution from a sleepy village to a hip locale is marked by the arrival of trendy cafes and boutiques. Prices in Ljuta are currently more affordable compared to the city's prime areas, but are rising due to growing demand and gentrification.

The anticipated price trend is upward, making it a potentially good investment. The area attracts those looking for a blend of traditional and modern lifestyles.

Strengths include its artistic vibe and community feel, while weaknesses are the ongoing construction and changing demographics. Ljuta's popularity is expected to continue growing as it becomes a creative hub.


Perast, historically a fishing village, is rapidly becoming a sought-after area for property buyers who appreciate its maritime heritage and slower pace of life.

The recent influx of boutique hotels and restaurants has boosted its appeal. While still more affordable than central Kotor, prices are on the rise due to the increasing interest. The neighborhood is drawing in a diverse crowd, from retirees to entrepreneurs, attracted by its scenic beauty and historical significance.

Perast’s strengths are its stunning waterfront and cultural richness, but it faces challenges like limited parking and seasonal overcrowding.

The trend towards popularity seems set to continue as more people discover its unique blend of history and natural beauty.

Make a profitable investment in Kotor

Better information leads to better decisions. Save time and money. Download our guide.

buying property in Kotor