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Everything you need to know before buying real estate is included in our Montenegro Property Pack
Thinking about buying a 3-bedroom apartment in Podgorica? It’s a great 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 regions like Budva or Kotor 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 Montenegro in 2025?
Yes, property prices in Montenegro are expected to rise in 2025, driven by a combination of increasing demand and strategic economic developments.
Backed by our fresh, in-depth market analysis, we’re confident that Montenegro is becoming an attractive destination for both local and international investors.
While there are some economic challenges like inflation and potential interest rate hikes, the main drivers behind Montenegro’s price growth remain strong.
The country's scenic beauty, coupled with its growing reputation as a tourist and investment hotspot, continues to attract buyers, making significant price drops unlikely.
Signals pointing to a property price increase in Montenegro
Here are some factors suggesting prices could increase:
Montenegro's strategic location and its growing reputation as a tourist destination are attracting international investors, leading to increased demand for properties, particularly in coastal areas.
The government's ongoing infrastructure projects, including improvements in transportation and public amenities, are expected to enhance property values, especially in urban and tourist-centric regions.
Montenegro's favorable tax policies for foreign investors are likely to continue attracting international buyers, boosting demand and driving up property prices.
The country's application for EU membership is progressing, and the potential for future EU integration is expected to increase investor confidence, leading to higher property prices.
A growing trend of digital nomads and remote workers choosing Montenegro for its scenic landscapes and affordable living is expected to bolster demand for residential properties.
The limited supply of new housing developments, particularly in prime locations, is likely to keep demand high and push property prices upward.
Montenegro's natural beauty and cultural heritage continue to attract high-net-worth individuals looking for luxury properties, further driving up prices in the premium market segment.
Signals pointing to a property price decrease in Montenegro
Here are some factors suggesting prices could fall:
Rising inflation and living costs may impact the purchasing power of local buyers, potentially reducing demand for properties in certain segments of the market.
Potential increases in interest rates could make financing more expensive, affecting the affordability of properties for both local and international buyers.
Economic uncertainties in the broader European region could impact investor confidence, potentially slowing down the rate of property price increases in Montenegro.
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If property prices go up in Montenegro, how much would they increase by?
If real estate prices in Montenegro were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Montenegro appreciates by approximately 3% to 7% annually, influenced by factors such as tourism growth, foreign investment, and infrastructure development.
It means that, if you spot a charming 2-bedroom apartment in Budva for 150,000 euros today, don't be surprised if it's priced between 154,500 and 160,500 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Montenegrin real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Seaside Apartment (60 sqm / 646 sqft) | €120,000 | €123,600 | €126,000 | €128,400 |
| Modern Villa (150 sqm / 1,615 sqft) | €400,000 | €412,000 | €420,000 | €428,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | €500,000 | €515,000 | €525,000 | €535,000 |
| Studio (30 sqm / 323 sqft) | €70,000 | €72,100 | €73,500 | €74,900 |
| Loft (80 sqm / 861 sqft) | €200,000 | €206,000 | €210,000 | €214,000 |
| Townhouse (150 sqm / 1,615 sqft) | €350,000 | €360,500 | €367,500 | €374,500 |
| Investment Property (50 sqm / 538 sqft) | €100,000 | €103,000 | €105,000 | €107,000 |
Everything you need to know is included in our Property Pack for Montenegro
If real estate prices go up in Montenegro, which areas are likely to see the biggest increases?
Today, people who want to move to Montenegro are looking for stunning natural beauty, but they also want modern conveniences and vibrant social scenes, which Kotor Old Town delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Budva has really taken off.
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 Montenegrin market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Kotor Old Town | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Budva | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in coastal areas. |
| Tivat | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Podgorica | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Herceg Novi | 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 extension of transport lines and renovation of historic areas, is boosting long-term value. |
| Bar | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Ulcinj | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Cetinje | Medium-High | Its proximity to natural parks, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Zabljak | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Sveti Stefan | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Lovćen National Park | High | Upcoming restoration projects and high-profile cultural initiatives are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Montenegro?
In 2025, Montenegro real estate trends focus on tech-smart, energy-efficient apartments, coastal villas with stunning views, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Coastal Villas with Stunning Views:
Montenegro's beautiful Adriatic coastline is attracting buyers looking for luxury and scenic beauty. Properties with panoramic sea views are in high demand, especially among international investors seeking vacation homes.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In Montenegro, where natural beauty is abundant, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Montenegro's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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