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Yes, the analysis of Tivat's property market is included in our pack
Property prices in Tivat have been rising steadily, though growth has moderated in 2025.
As of June 2025, the average price per square meter for residential properties in Tivat stands at approximately €3,700, with luxury developments in Porto Montenegro commanding €5,000 to €10,000+ per square meter. Recent data shows a 2-5% year-on-year increase, with some brief stabilization periods.
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Property prices in Tivat have increased 80-100% over the past five years, with current average prices at €3,700/m² and luxury properties reaching €10,000+/m².
Porto Montenegro and Donja Lastva lead in price growth, with waterfront properties and luxury apartments seeing the highest appreciation, though Q2 2025 saw a minor 1% correction.
| Property Type | Average Price/m² (2025) | Price Change (YoY) |
|---|---|---|
| Standard Apartments | €2,000-2,500 | +3-5% |
| Luxury Apartments | €5,000-10,000+ | +2-4% |
| Houses (median) | €4,624 | +4-6% |
| Porto Montenegro | €5,000-10,000+ | +5-7% |
| Standard Properties | €1,500-2,700 | +2-3% |
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.
What are the current average property prices per square meter in Tivat as of June 2025?
The average price per square meter for residential properties in Tivat currently stands at approximately €3,700.
This figure represents a blend of different property types and locations within Tivat. For apartments specifically, the median price reaches €5,702/m², while houses have a median price of €4,624/m². The variation is significant depending on the specific area and property characteristics.
Luxury developments command substantially higher prices. Properties in Porto Montenegro and Luštica Bay typically range from €5,000 to €10,000+ per square meter, with some exclusive penthouses exceeding these figures. The most prestigious waterfront properties with marina access often reach the upper end of this range.
Standard residential properties outside the luxury segment generally range from €1,500 to €2,700/m². These properties are located in traditional neighborhoods and offer more affordable options for buyers who don't require premium amenities or waterfront locations.
The price spectrum in Tivat reflects the diverse market, catering to both luxury seekers and those looking for more modest investments in this coastal town.
How much have property prices increased in Tivat over the past year?
Residential property prices in Tivat have increased by approximately 2-5% over the past year, though growth has moderated compared to previous years.
The rate of increase varies by property type and location. Luxury waterfront properties and those in Porto Montenegro have seen stronger appreciation, often at the higher end of this range. Standard residential properties have experienced more modest gains of 2-3%.
Quarterly data reveals interesting patterns. While the overall trend remains upward, Q2 2025 saw a minor 1% price drop in Tivat, suggesting a brief stabilization or correction phase. This temporary dip follows several years of strong, consistent growth and may indicate the market is finding a new equilibrium.
Despite this recent moderation, the long-term trend remains firmly positive. The market has shown resilience, with steady quarterly growth maintaining the upward trajectory. Foreign investment continues to support prices, particularly in the premium segment.
It's something we develop in our Montenegro property pack.
Which neighborhoods in Tivat are experiencing the fastest price growth?
Porto Montenegro and Donja Lastva are currently experiencing the fastest price growth in Tivat's property market.
Porto Montenegro continues to lead as the premium destination, with its luxury waterfront developments, world-class marina facilities, and high-end amenities driving consistent appreciation. Properties here benefit from the prestige factor and international appeal, attracting wealthy buyers from across Europe and beyond.
| Neighborhood | Price Range/m² | Growth Rate | Key Features |
|---|---|---|---|
| Porto Montenegro | €5,000-10,000+ | 5-7% annually | Marina access, luxury amenities |
| Donja Lastva | €3,000-5,000 | 4-6% annually | Waterfront, traditional charm |
| Luštica Bay | €4,000-8,000 | 4-5% annually | New development, eco-friendly |
| Tivat Waterfront | €3,500-6,000 | 3-5% annually | Central location, sea views |
| Traditional Villages | €1,500-3,000 | 2-3% annually | Authentic, more affordable |
Donja Lastva combines traditional Montenegrin charm with modern development, making it increasingly popular among buyers seeking authenticity with convenience. The area's waterfront location and proximity to Porto Montenegro add to its appeal.
Outlying areas and traditional villages are experiencing slower but steady growth, often tied to infrastructure improvements and spillover demand from the more expensive neighborhoods.
What types of properties are seeing the biggest price increases?
Luxury waterfront villas and high-end apartments with marina access are experiencing the most significant price increases in Tivat.
These premium properties, particularly those offering direct sea views or private beach access, have seen appreciation rates of 5-7% annually. The combination of limited supply and strong international demand drives this segment's robust performance. Properties in Porto Montenegro with yacht berths command especially high premiums.
Modern, eco-friendly apartments represent another fast-growing category. As sustainability becomes a priority for affluent buyers, properties featuring energy-efficient design, smart home technology, and green certifications are seeing increased demand and corresponding price growth.
Land plots suitable for luxury development are also appreciating rapidly. With limited available land in prime locations, developers are competing for parcels that can accommodate high-end projects, driving up land values significantly.
Traditional apartments and houses in non-waterfront locations show more modest appreciation, typically 2-3% annually, reflecting their position in the more accessible segment of the market.
How do Tivat property prices in 2025 compare to five years ago?
Property prices in Tivat have increased dramatically over the past five years, with gains of 80-100% in prime and luxury segments.
In 2020, standard residential properties averaged €1,500-2,000/m². By 2025, these same properties now command €3,700/m² on average, representing nearly a doubling in value. This remarkable appreciation reflects Tivat's transformation into Montenegro's premier coastal destination.
The most dramatic gains occurred in Porto Montenegro and Luštica Bay. Properties that sold for €2,500-3,000/m² in 2020 now fetch €5,000-10,000/m² or more. Some exclusive waterfront villas and penthouses have seen even greater appreciation, with values tripling in certain cases.
This five-year period coincided with increased foreign investment, major infrastructure improvements, and Montenegro's progress toward EU accession. The COVID-19 pandemic initially caused uncertainty but ultimately accelerated demand as buyers sought properties in less crowded, naturally beautiful locations.
The pace of growth has been extraordinary by historical standards, transforming Tivat from an affordable coastal town into one of the Adriatic's most expensive property markets.
What are the property price forecasts for Tivat in 2026?
Property prices in Tivat are expected to rise by 3-7% annually over the next several years, with 2026 likely seeing continued but moderated growth.
Experts predict the luxury and waterfront segments will maintain stronger appreciation, potentially reaching the higher end of this range. Porto Montenegro and similar premium developments should continue attracting international buyers, supporting price growth. Standard residential properties may see more modest increases of 3-4%.
Several factors support this positive outlook. Montenegro's ongoing EU accession negotiations boost investor confidence, while infrastructure improvements enhance accessibility. The tourism sector's continued growth, with visitor numbers increasing annually, maintains strong rental demand.
However, the market is expected to mature, with the explosive growth of recent years giving way to more sustainable appreciation rates. New supply coming online in various developments may help balance demand, preventing the sharp spikes seen previously.
Long-term forecasts through 2030 suggest cumulative growth of 15-35%, depending on the property type and location, with waterfront and luxury properties likely outperforming the broader market.
How is tourism growth affecting residential property prices in Tivat?
Tourism growth has been a major driver of Tivat's property price increases, with a 30% rise in tourist arrivals over the past five years significantly boosting demand.
Tivat welcomed approximately 650,000 tourists in 2023, up from 500,000 in 2018. This surge has created strong demand for both holiday homes and rental properties. Peak season occupancy rates exceed 90% in popular areas, allowing property owners to charge premium rates and achieve attractive rental yields.
The tourism boom has particularly benefited waterfront properties and those near Porto Montenegro. Properties in these areas can generate monthly rental revenues of €2,000+ during peak season, with annual yields reaching 4-7%. This rental potential makes properties more valuable to investors.
Infrastructure improvements driven by tourism, including airport expansion and marina upgrades, have enhanced property values across Tivat. The city's transformation into a year-round destination, rather than just a summer resort, provides more stable rental income opportunities.
Foreign tourists, particularly from Western Europe and the Middle East, often become property buyers after visiting, creating a direct link between tourism growth and real estate demand.
What impact is foreign investment having on Tivat's property market?
Foreign investment exceeding €400 million annually has become the dominant force driving Tivat's property market upward.
International buyers, primarily from Western Europe, Russia, and the Middle East, account for the majority of luxury property purchases. These investors are attracted by Montenegro's residency-by-investment program, favorable tax policies, and the country's potential EU membership. Their purchasing power far exceeds local buyers, pushing prices higher especially in premium segments.
Porto Montenegro specifically targets international clients, with marketing efforts focused on London, Moscow, and Dubai. This strategy has proven highly successful, with foreign buyers accounting for over 70% of sales in luxury developments. The presence of international brands and services caters to these buyers' expectations.
The impact extends beyond direct purchases. Foreign investment has funded major infrastructure projects, improved local services, and created employment opportunities. This economic stimulus increases local purchasing power, creating secondary demand for mid-range properties.
It's something we develop in our Montenegro property pack.
How does Tivat compare to other Montenegro coastal cities in terms of property prices?
Tivat commands the highest property prices among Montenegro's coastal cities, with averages of €3,700/m² compared to €3,000/m² in Kotor and Budva.
| City | Average Price/m² (2025) | Premium Locations | Price Trend | Key Features |
|---|---|---|---|---|
| Tivat | €3,700 | €5,000-10,000+ | Rising 3-5% | Porto Montenegro, airports |
| Kotor | €3,000+ | €5,000+ (Old Town) | Rising 3-4% | UNESCO heritage, history |
| Budva | €3,000 | €6,000 (luxury) | Rising 2-4% | Beaches, nightlife |
| Herceg Novi | €2,850 | €4,000 | Rising 2-3% | Gardens, quieter |
| Bar | €2,700 | €3,500 | Stable | Port city, affordable |
Tivat's premium pricing reflects several advantages: the international airport providing easy access, Porto Montenegro's luxury marina attracting wealthy buyers, and extensive recent development creating modern inventory. While Kotor offers historic charm and Budva provides beach resort atmosphere, Tivat combines accessibility with luxury.
The price differential has widened in recent years. Five years ago, Tivat was comparably priced to Budva and Kotor. Today, it commands a 20-25% premium, driven by concentrated luxury development and international marketing success.
We made this infographic to show you how property prices in Montenegro compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What are the current mortgage rates and how do they affect property demand?
Current mortgage rates in Montenegro range from 5.5-7% for foreign buyers, impacting affordability and moderating demand growth in 2025.
These rates represent a significant increase from the 3-4% rates available several years ago. For a typical €300,000 property with 20% down payment, monthly payments now reach approximately €1,600-1,800, compared to €1,100-1,300 at previous rates. This 40-50% increase in financing costs has priced out some potential buyers.
Foreign buyers often face higher rates and stricter requirements than locals. Banks typically require 30-40% down payments from non-residents and extensive documentation. Some international buyers circumvent this by purchasing cash, which has kept the luxury segment more insulated from rate impacts.
Despite higher rates, demand remains relatively strong, particularly from cash buyers and those viewing Tivat property as a long-term investment or lifestyle purchase rather than a purely financial transaction. The rental income potential helps offset higher financing costs for investment buyers.
Local banks have begun offering more competitive products to attract foreign buyers, recognizing their importance to the market.
How is Montenegro's EU accession progress influencing Tivat property prices?
Montenegro's advancing EU accession negotiations have significantly boosted investor confidence, contributing to Tivat's property price appreciation.
The country's progress toward EU membership, with several negotiation chapters opened, signals political stability and economic alignment with European standards. This progress has attracted EU investors who anticipate easier property ownership, simplified residency procedures, and increased property values post-accession.
Foreign investors view EU membership as a catalyst for further price growth. Historical precedents from other countries show property values typically increase 20-40% in the years surrounding EU accession. This expectation drives current demand, particularly from buyers seeking to position themselves before membership.
The residency-by-investment program gains additional appeal with potential EU membership, as it could eventually provide access to the entire European Union. This prospect has intensified competition for premium properties, especially in Porto Montenegro.
Infrastructure funding from EU pre-accession programs has already improved roads, utilities, and public services in Tivat, enhancing property values and quality of life for residents.
It's something we develop in our Montenegro property pack.
What recent fiscal reforms are impacting the Tivat property market?
The progressive property tax introduced in 2024 targets luxury properties but hasn't significantly dampened Tivat's market momentum.
This new tax structure imposes higher rates on properties valued above €150,000, with luxury properties over €500,000 facing the steepest increases. For a €1 million property in Porto Montenegro, annual taxes may now reach €15,000-20,000, compared to previous rates of €5,000-8,000.
Despite initial concerns, the impact has been modest. Luxury buyers, who represent Tivat's core market, generally accept these costs as part of owning premium property. The tax has slightly slowed speculative investment but hasn't deterred genuine buyers seeking quality properties for personal use or rental income.
The 3% transfer tax remains competitive compared to many European countries, maintaining Montenegro's attractiveness for foreign investors. Some buyers have accelerated purchases to lock in current prices before potential future tax increases.
Tax revenues from these reforms fund infrastructure improvements that ultimately benefit property values, creating a positive feedback loop that supports continued market growth.
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.
Based on current market data and trends, property prices in Tivat are indeed going up, though at a more moderate pace than in previous years. The answer is: Yes.
With average prices at €3,700/m² representing an 80-100% increase over five years, strong foreign investment exceeding €400 million annually, and continued tourism growth, Tivat's property market maintains its upward trajectory despite recent moderation in growth rates.
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Sources
- Montenegro Business - Real Estate Market Analysis
- Properstar - Tivat House Prices
- Webhillside - Tivat Real Estate Market Analysis
- Objekta Real Estate - Montenegro Market Breakdown
- Montenegro Real Estate - New Developments
- Investropa - Tivat Price Forecasts
- Objekta Real Estate - Tivat 2025 Outlook
- Investropa - Tivat Real Estate Market
- Investropa - Property Investment Tivat
- Global Property Guide - Montenegro Price History