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
Are you considering investing in Montenegro's real estate market? Curious about which areas are set to become the most sought-after by 2025? Want to know where your investment will yield the highest returns?
We will lay down recent insights, highlighting the 12 hottest real estate areas in Montenegro. Ici no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Montenegro Property Pack
1) Kotor's Dobrota area attracts with scenic views and rising demand for holiday homes
The Dobrota area in Kotor is becoming a hot spot for holiday homes, thanks to its stunning scenic views.
In recent years, Montenegro's real estate market, including Dobrota, has been on the rise. From 2024 to 2029, it's expected to grow by 5.67%, driven by the demand for properties that blend natural beauty with modern comforts. This growth shows how attractive the area is to both local and international buyers.
Tourism in Kotor is booming, with 872,000 visitors flocking there in just June and July of 2024. This surge in tourists has led to a higher demand for vacation homes and rentals, especially in picturesque spots like Dobrota. Real estate agents often talk up Kotor Bay's premium appeal, highlighting its breathtaking scenery and the rising interest in luxury properties.
Luxury real estate projects in the Kotor area are adding to its charm. Developments like Porto Montenegro and Lustica Bay offer world-class amenities and stunning views, drawing more investors and holiday homeowners to Dobrota. The growing number of international buyers eyeing Dobrota shows its increasing allure as a prime spot for holiday homes and investment properties.
Sources: Statista, Kolpakoff, Montenegro Business
2) Zabljak attracts investors with its mountain tourism potential and growing interest in ski resort properties
Žabljak is becoming a hotspot for investors, especially in mountain tourism and ski resort properties.
Tourist numbers have jumped, with a 15% increase in visitors during May and June compared to last year, and a 10% rise in July and August. This surge shows that more people are discovering Žabljak's charm, and the high number of overnight stays highlights the strong demand for what the town offers.
Big money is flowing into ski resort infrastructure, with €3 million from the capital budget and €5 million from the state. These funds are part of a larger plan to make Žabljak even more appealing, including better water supply, modern roads, and a new parking garage. These upgrades are key to handling more visitors and making their stay enjoyable.
The real estate scene in Žabljak is buzzing, with property prices on the rise thanks to ongoing investments and interest from foreign buyers. Residential properties are priced between €1,200 and €2,000 per square meter, while luxury spots can hit €3,000 per square meter in top areas. This trend is pulling in investors eyeing vacation homes or rental properties, with rental yields looking attractive at 6% to 10%.
Sources: Montenegro Business, Hillside Lux
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3) Lustica Peninsula is attracting interest for eco-friendly projects and increasing property values
The Lustica Peninsula is catching eyes for its eco-friendly developments and rising property values, thanks to the Luštica Bay project.
Covering a massive 7 million square meters, Luštica Bay is the largest development in southern Europe. Despite only 10% of the land being developed, there's already been a significant boost in property values. For instance, a studio apartment in Centrale, the town center, starts at EUR 109,000, showing strong market interest.
This EUR 1.1 billion project is all about sustainable infrastructure. Around EUR 90 million is earmarked for essentials like roads, water reservoirs, and wastewater treatment plants. This eco-conscious approach is attracting both local and international buyers who want to live sustainably.
Luštica Bay isn't just about homes; it includes a new marina village, five-star hotels, and real estate neighborhoods, all designed with sustainability in mind. The development also boasts an 18-hole golf course, schools, hospitals, and community facilities, making it a luxurious and sustainable destination.
Buyers are drawn to the idea of living in a place that offers both luxury and a commitment to the environment. The project's focus on eco-friendly living is a major selling point, especially as more people look for ways to reduce their carbon footprint.
Sources: Luštica Bay, Luštica Bay Blog, Standard.co.uk
4) Bar is popular for affordable seaside properties and rising demand from international buyers
Bar is gaining popularity for its affordable seaside properties and increasing demand from international buyers.
In 2023, foreign direct investment in Montenegro's real estate saw a 5.41% rise, with Bar playing a key role in this growth. This uptick shows a clear interest from international buyers who are eyeing Bar as a promising investment spot. The town's appeal is largely due to its affordability, with apartments starting at €50,000 and houses from €100,000. Compared to other coastal towns like Budva, where prices soar, Bar offers a more budget-friendly option.
International real estate agencies have set up shop in Bar, underscoring the growing interest from foreign buyers. These agencies focus on properties in Bar, signaling a significant demand from international clients. Local real estate agents have noticed a surge in buyers from countries like Germany and Russia, drawn by Bar's scenic beauty and competitive prices.
Bar's charm isn't just in its prices; it's also about the lifestyle. The town offers a laid-back vibe with stunning coastal views, making it a perfect spot for those looking to escape the hustle and bustle. The presence of international buyers is a testament to Bar's appeal, as more people discover its potential as a real estate hotspot.
For those considering a property investment, Bar presents a unique opportunity. The combination of affordable prices and increasing international interest makes it a compelling choice. As more people learn about Bar's offerings, the demand is likely to continue growing, making now a great time to invest.
Sources: Global Property Guide, Montenegro Real Estate, Deluxe Estate, The Wandering Investor
5) City Kvart in Podgorica is highly sought after for modern apartments and strong rental demand from young professionals
City Kvart in Podgorica is a magnet for young professionals thanks to its modern apartments and bustling rental market.
In this vibrant neighborhood, apartments are snapped up quickly, showing just how eager people are to live here. It's a hot spot for renters, with high occupancy rates that speak volumes about its popularity.
Over the years, property values in City Kvart have climbed, reflecting its growing appeal. Back in 2019, studio apartments were fetching prices as high as €1,750 per square meter, a testament to the area's desirability among buyers and investors.
Young professionals love City Kvart for its modern amenities and central location. It's the perfect place for living and working, which keeps rental demand high. This demographic finds everything they need right at their doorstep.
For property investors, City Kvart is a goldmine. The average gross rental yield in Podgorica, where City Kvart is located, is 5.70% for apartments. This makes it an attractive option for those seeking solid returns on their investments.
Sources: RE/MAX Montenegro, Global Property Guide
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6) Herceg Novi is attracting interest for its charming old town and strong potential for property appreciation
Herceg Novi is catching the eye of property buyers thanks to its charming old town and investment potential.
Imagine strolling through Herceg Novi's picturesque old town, where cultural and historical gems are around every corner. These heritage buildings aren't just tourist magnets; they're also drawing in investors eager for unique, luxurious properties.
Property prices here are climbing, with apartments averaging €3,493 per square meter and houses at €2,825. This uptick shows a growing demand for homes, and real estate agencies are buzzing with activity, reflecting a surge in transactions.
International buyers are also fueling this trend. Montenegro's friendly tax policies for foreigners make it an attractive spot for international investors, pushing demand and prices even higher.
Nearby, luxury housing projects in places like Kotor Old Town are luring high-net-worth individuals, which is boosting the premium property market in the region.
With all these factors in play, Herceg Novi is becoming a prime location for those looking to invest in a property with both charm and potential for appreciation.
Sources: Properstar, Montenegro Business, Investropa
7) Tivat attracts investors with luxury developments and high rental yields from the Porto Montenegro marina
Tivat is drawing in investors thanks to luxury developments and high rental yields at Porto Montenegro marina.
Porto Montenegro is not just any marina; it's a hub of luxury with projects like the SIRO hotel and the Synchro project elevating its status. These developments have attracted big names in dining and shopping, making the area even more appealing. The government has backed these luxury real estate projects, turning Porto Montenegro into a key spot for international yachting.
Properties near Porto Montenegro are in high demand, selling fast because of the top-notch amenities and conditions the complex offers. Since 2012, property values have skyrocketed, with some areas seeing prices jump by over 200%.
Investors are particularly interested in the high rental yields that come with owning property in this area. The marina's luxury appeal and amenities are major factors driving these yields.
Porto Montenegro's allure is further enhanced by the presence of renowned restaurants and retail outlets, which have set up shop thanks to the area's growing reputation. This has made it a prime location for both living and investment.
With the government's support and the influx of luxury brands, Porto Montenegro is not just a marina but a strategic destination for investors looking for high returns.
Sources: Sotheby's Realty, Opština Tivat, The Imperium
8) Sveti Stefan is a top market with exclusive properties and high demand for luxury real estate
Sveti Stefan is a hotspot for luxury real estate, thanks to its exclusive properties and high demand.
In this area, property prices soar above other Montenegrin regions. For instance, nearby Porto Montenegro boasts apartments that can fetch up to €14,000 per square meter, especially those offering breathtaking sea views. This makes Sveti Stefan a prime choice for those seeking opulence.
The allure of Sveti Stefan is amplified by its limited property availability. This scarcity, coupled with high demand, naturally inflates prices, enhancing the market's exclusivity. The area is dotted with luxurious private cottages and suites, some featuring private pools and terraces, which attract affluent buyers in search of unique, high-end living experiences.
Adding to its charm, Sveti Stefan hosts the renowned Aman resort, celebrated for its stunning views and top-notch amenities. This resort, along with boutique hotels like Hotel Adrovic, cements the area's status as a luxury destination. The historical significance of Sveti Stefan, dating back to the 15th century, adds a cultural depth that appeals to many high-profile individuals.
Many celebrities have chosen to vacation or even marry in Sveti Stefan, drawn by its rich history and exclusive atmosphere. This celebrity appeal further boosts the area's prestige, making it a sought-after location for luxury real estate.
For those considering a property investment, Sveti Stefan offers a unique blend of history, luxury, and exclusivity. Its limited availability and high demand ensure that properties here remain a valuable asset.
Sources: James Edition, The Hotel Guru, The Wandering Investor
Everything you need to know is included in our Property Investment Pack for Montenegro
9) Rafailovici in Budva is booming with beachfront properties and a thriving short-term rental market
Rafailovici in Budva is a hot spot thanks to its beachfront properties and booming short-term rental market.
In recent years, property prices in Budva, including Rafailovici, have been climbing steadily. This trend is expected to continue, with projections suggesting a 3% to 7% increase in 2025 compared to 2024. The main drivers are the surge in tourism and the limited availability of real estate.
The short-term rental market in Rafailovici is thriving, with occupancy rates hitting up to 95% during peak seasons like July and August. Nightly rental prices can soar to €200, showing just how strong the demand is. Tourists are willing to pay a premium for these beachfront spots, as evidenced by the glowing reviews and high ratings on vacation rental platforms.
Rafailovici is also seeing ongoing gentrification and new transport links, along with several planned redevelopment projects. These changes are likely to push property prices even higher and make the area more appealing to both residents and investors. Media often spotlight Budva as a top tourist destination, with Rafailovici standing out for its desirable beachfront properties.
Insider knowledge suggests that the area's charm isn't just about the beach. The local culture, vibrant nightlife, and culinary scene add to its allure, making it a favorite among tourists and potential property buyers alike.
For those considering an investment, Rafailovici offers a unique blend of natural beauty and economic opportunity. The combination of high rental yields and property appreciation makes it a compelling choice for savvy investors.
Sources: Investropa, The Wandering Investor, The Wandering Investor, Trading Economics
10) Petrovac is a top choice for its quiet coastal charm and strong potential for property value growth
Petrovac is quickly becoming a favorite for those seeking a peaceful coastal retreat with promising property value growth.
Imagine owning a slice of paradise where property prices are on the rise. While exact figures for Petrovac might be scarce, the trend in Montenegro's coastal areas is clear. For instance, the average price per square meter for apartments in Petrovac is about €2,462. This is notably lower than in bustling towns like Budva and Kotor, hinting at potential for future growth.
Foreign investors are catching on to this opportunity. In 2023, foreign direct investment in real estate increased by 5.41%, reaching €296.81 million. This surge in investment is a strong indicator that Petrovac and similar areas are becoming hot spots, likely driving up property values and enhancing their allure.
Petrovac's charm isn't just in numbers; it's in the experience. Travel articles and reviews often rave about its tranquility, drawing in tourists and potential buyers alike. This buzz contributes to its growing popularity, making it a place where people want to invest and live.
Compared to more developed areas like Budva or Kotor, Petrovac offers a more affordable entry point into the coastal property market. This affordability, combined with its serene environment, makes it an attractive option for those looking to invest wisely.
Sources: Properstar, Global Property Guide, Montenegro Prospects
11) Bijela is booming due to its closeness to the Bay of Kotor and rising demand for waterfront properties
Bijela is becoming a hotspot because of its close proximity to the Bay of Kotor, a stunning area known for its natural beauty and UNESCO heritage sites.
Investors are drawn to Bijela for its exclusive waterfront properties, making it a prime location for real estate. The area is buzzing with new developments, like Luštica Bay, which has already delivered nearly 600 residences and attracted people from over 40 different countries.
Foreign investors are showing a growing interest in Montenegrin real estate, especially in coastal areas like Bijela. The demand for homes in the Bay of Kotor region is fueled by both locals and international buyers who are on the hunt for luxury apartments and waterfront properties.
Bijela's appeal is not just about the properties; it's about the lifestyle. The area offers a unique blend of natural beauty and modern amenities, making it a desirable place to live or invest. The international community in Bijela is thriving, adding to the area's charm and vibrancy.
With its strategic location and increasing interest from global investors, Bijela is poised to become a key player in the Montenegrin real estate market. The ongoing developments and the influx of international residents are clear indicators of its rising popularity.
Sources: Lustica Bay Blog, The Wandering Investor, Montenegro Real Estate
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12) Ulcinj attracts attention for its long sandy beaches and rising demand for vacation rentals
Ulcinj is catching eyes for its long sandy beaches and booming vacation rental scene.
In recent years, Ulcinj has seen a surge in vacation rental listings, especially on platforms like Airbnb. This uptick in listings reflects a growing demand for vacation rentals, making Ulcinj a hot spot for tourists. The town's appeal is largely due to its stunning beaches, which are a major draw for visitors.
Velika Plaža, a 13-kilometer stretch of sand, is a standout attraction. This beach is not just a natural wonder but also a magnet for summer tourists. The influx of visitors has fueled the vacation rental market, as more people want to soak in the beauty of Ulcinj's coastline.
Ulcinj's real estate market is also on the rise, offering everything from luxury seaside homes to budget-friendly city apartments. This growth is bolstered by the town's expanding tourism infrastructure, making it appealing to both vacationers and investors. The combination of breathtaking beaches and a thriving real estate market makes Ulcinj a sought-after destination.
For those considering a property purchase, Ulcinj offers a unique blend of natural beauty and investment potential. The town's development is supported by its robust vacation rental market, which continues to attract attention from around the globe.
With its picturesque landscapes and growing amenities, Ulcinj is becoming a prime location for both leisure and investment. The town's allure is undeniable, drawing in those who wish to experience its charm firsthand.
Sources: Airbnb, Home in Montenegro, Sandaltanman
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.