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 offers significantly lower property prices than Croatia, with average costs 20-30% cheaper across most regions.
As of September 2025, Montenegro's property market presents better value for money than Croatia, particularly for coastal properties where buyers can save €1,000-€2,000 per square meter. While Croatia offers more established infrastructure and EU membership benefits, Montenegro provides higher rental yields, lower taxes, and reduced transaction costs for property investors.
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's property prices average €2,158-€2,201 per square meter nationally, while Croatia averages €2,050 per square meter, but coastal regions show significant differences.
Montenegro offers better investment returns with 5-8% rental yields compared to Croatia's 4-6%, plus lower annual property taxes of 0.1-1% versus Croatia's new €0.60-€8 per square meter tax system.
| Comparison Factor | Montenegro | Croatia |
|---|---|---|
| Average Price per m² | €2,158-€2,201 (national) | €2,050 (national) |
| Coastal Price per m² | €2,700-€5,000 | €3,861-€5,477 |
| One-bedroom (Capital) | €80,000-€110,000 (Podgorica) | €120,000-€150,000 (Zagreb) |
| Property Tax (Annual) | 0.1-1% of market value | €0.60-€8 per m² |
| Closing Costs | 4-5% total | 6-10% total |
| Rental Yields | 5-8% gross | 4-6% gross |
| Airbnb Rates (Peak) | €85-€220/night | €110-€320/night |
How much does a square meter of property cost in Montenegro compared to Croatia right now?
Montenegro's average property price per square meter stands at €2,158-€2,201 nationally for new builds as of September 2025.
Croatia's national average sits slightly lower at €2,050 per square meter, but this figure masks significant regional variations that make Montenegro the more affordable option in most comparable markets.
In Montenegro's capital Podgorica, prices range from €1,520-€2,250 per square meter, while Croatia's capital Zagreb commands €3,605 per square meter - making Zagreb 60% more expensive than Podgorica.
Coastal regions show the most dramatic differences, with Montenegro's prime coastal areas (Budva, Kotor, Tivat) priced at €2,700-€5,000 per square meter compared to Croatia's Split and Dubrovnik at €3,861-€5,477 per square meter.
Montenegro's luxury coastal properties can reach €14,000 per square meter in premium developments like Porto Montenegro, while Croatia's luxury coastal properties typically max out at €7,000 per square meter.
What is the average price of a one-bedroom apartment in Podgorica versus Zagreb?
A new one-bedroom apartment in Podgorica costs between €80,000-€110,000 as of September 2025.
Zagreb's equivalent one-bedroom apartments in the city center range from €120,000-€150,000, making Zagreb properties 40-50% more expensive than Podgorica.
The price difference translates to approximately €40,000-€50,000 savings when choosing Podgorica over Zagreb for a comparable one-bedroom unit.
It's something we develop in our Montenegro property pack.
How much would I pay for a two-bedroom apartment near the coast in Budva compared to Split?
Two-bedroom coastal apartments in Budva range from €210,000-€300,000, based on current market rates.
Split's comparable two-bedroom coastal apartments cost €180,000-€300,000, showing similar upper ranges but Split offers some lower entry points.
However, when examining price per square meter, Budva averages €2,700-€5,000 while Split ranges €3,861-€5,700, making Budva generally more affordable for equivalent space.
The location within each city significantly impacts prices, with sea-view properties commanding premium rates in both markets.
What are the current prices for a house with a garden in Kotor versus Dubrovnik?
Houses with gardens in Kotor typically cost €300,000-€1.3 million, depending on size, location, and sea proximity.
| Property Type | Kotor Price Range | Dubrovnik Price Range |
|---|---|---|
| Standard house with garden | €300,000-€600,000 | €450,000-€800,000 |
| Sea-view house with garden | €600,000-€1,000,000 | €800,000-€1,500,000 |
| Luxury villa with garden | €1,000,000-€1,300,000 | €1,500,000-€3,000,000+ |
| Average price per m² | €2,700-€5,000 | €4,151-€7,000 |
| Typical garden size | 200-500 m² | 150-400 m² |
| Annual property tax | €200-€800 | €500-€1,500 |
| Maintenance costs/year | €1,000-€2,500 | €1,500-€3,500 |
Don't lose money on your property in Montenegro
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How much do beachfront properties in Montenegro cost compared to those in Croatia's Adriatic coast towns?
Montenegro's beachfront properties range from €2,700-€5,000 per square meter for standard beachfront locations.
Croatia's Adriatic beachfront properties cost €2,500-€7,000 per square meter, showing a wider price range with higher maximum prices.
Ultra-luxury beachfront developments in Montenegro, such as Porto Montenegro or Luštica Bay, can reach €14,000 per square meter, exceeding Croatia's typical luxury maximums.
Montenegro's beachfront market offers better value in the mid-range segment, while Croatia provides more options in the lower price brackets but commands premiums for prime locations like Dubrovnik's coastline.
What are the yearly property taxes in Montenegro compared to Croatia?
Montenegro imposes annual property taxes of 0.1-1% of market value, typically resulting in €120-€500 yearly for most residential properties.
Croatia implemented a new property tax system in 2025, charging €0.60-€8 per square meter annually, which averages €1,200 per year for coastal properties.
Montenegro's tax burden remains significantly lower, with luxury properties facing higher rates but still generally below Croatia's new system.
The tax calculation methods differ substantially: Montenegro uses percentage of market value while Croatia employs a per-square-meter formula that often results in higher total payments.
How much are closing costs and legal fees when buying in Montenegro compared to Croatia?
Montenegro's total closing costs average 4-5% of the property purchase price.
- Transfer tax: Progressive rates of 3-6% based on property value
- Notary fees: Minimum €350 plus VAT
- Legal fees: €1,200-€3,000 depending on complexity
- Translation and administrative fees: €200-€500
- Registration fees: €50-€100
Croatia's closing costs range from 6-10% of purchase price, including 3% transfer tax, notary and registry fees, plus legal representation costs.
Montenegro offers approximately 2-5 percentage points savings on total transaction costs compared to Croatia, representing significant savings on higher-value properties.
It's something we develop in our Montenegro property pack.
What are the average rental yields for apartments in Montenegro versus Croatia?
Montenegro's coastal urban apartments generate gross rental yields of 5-8% annually.
Croatia's tourist zone apartments typically achieve 4-6% gross rental yields.
Montenegro's higher yields result from lower purchase prices combined with strong tourist demand, particularly in Budva and Kotor.
Both countries benefit from EU tourism, but Montenegro's emerging market status and lower entry costs provide better yield opportunities for investors.
Peak season performance significantly impacts annual yields in both markets, with Montenegro showing more consistent year-round demand in prime coastal locations.
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.
How much does it cost per year to maintain a property in Montenegro compared to Croatia, including utilities and upkeep?
Annual maintenance costs for a 50-100 square meter apartment or house in Montenegro average €750-€1,500.
Croatia's equivalent property maintenance costs range €1,000-€2,000 annually.
Montenegro's lower costs stem from cheaper labor rates, lower utility costs, and reduced municipal fees compared to Croatia's EU-aligned pricing structure.
Maintenance costs include utilities, building management fees, basic repairs, and annual inspections required in both countries.
What are the average Airbnb nightly rates for coastal properties in Montenegro compared to Croatia?
Montenegro's coastal Airbnb properties command €85-€220 per night during peak season in Budva, Kotor, and Tivat.
Croatia's Split and Dubrovnik coastal properties average €110-€320 per night during peak season.
Croatia's higher rates reflect its established tourism infrastructure and EU membership appeal, while Montenegro offers competitive rates with growing international recognition.
Off-season rates drop 40-60% in both countries, but Montenegro maintains better occupancy rates due to year-round mild coastal climate.
Montenegro's Airbnb market shows rapid growth potential as international awareness increases and infrastructure develops.
How do mortgage rates and financing options differ between Montenegro and Croatia?
Montenegro's mortgage market requires 30-40% down payments with interest rates of 4-6% for Euro-denominated loans.
| Financing Aspect | Montenegro | Croatia |
|---|---|---|
| Down Payment Required | 30-40% | 20-30% |
| Interest Rates | 4-6% (Euro) | 3-5% (Euro) |
| Loan Terms | 15-20 years typical | 20-30 years typical |
| Foreign Buyer Access | Limited, high requirements | Better for EU/EEA citizens |
| Fixed Rate Options | Limited availability | Widely available |
| Maximum LTV | 60-70% | 70-80% |
| Processing Time | 2-4 months | 1-3 months |
It's something we develop in our Montenegro property pack.
What is the average return on investment timeline for property in Montenegro versus Croatia?
Montenegro's rental properties typically achieve full ROI in 11-16 years, with shorter timelines in prime Budva and Kotor locations.
Croatia's property investments generally require 16-22 years for full ROI, though prime tourist rental properties can achieve faster returns.
Montenegro's faster ROI results from lower entry costs, higher rental yields, and growing tourism market expansion.
Both countries benefit from capital appreciation, but Montenegro's emerging market status provides greater upside potential for early investors.
Tourism growth, infrastructure development, and EU accession prospects significantly impact long-term ROI projections in both markets.
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 presents a compelling alternative to Croatia for property investment, offering 20-30% lower purchase prices, reduced transaction costs, and superior rental yields.
While Croatia provides established EU infrastructure and financing options, Montenegro's emerging market status, favorable tax structure, and growing tourism sector create attractive opportunities for both investors and residents seeking Mediterranean coastal properties at accessible prices.
Sources
- Montenegro Real Estate Market Analysis
- Croatia Real Estate Prices 2025 Market Analysis
- Croatia House Price Index
- Cost of Living in Croatia 2025
- Average House Price in Montenegro
- Croatia Real Estate Investment Guide 2025
- Complete Cost of Buying Property in Montenegro
- Taxes in Montenegro Guide
- Montenegro Price Forecasts
- Buying Property Croatia vs Montenegro