The real estate market in Montenegro continues to show a steady increase in prices, and, according to analysts, a significant decrease in the cost per square meter is not expected in the near future. The main reason for this is the high demand, which significantly exceeds supply. This creates favorable conditions for sellers and developers.
Current prices for housing in Montenegro
According to official data, in 2023 the average property price increased by about 100 euros and reached 1 euros per square meter. However, as noted Viachaslav Maevski, founder of a real estate agency MD Realty, the average cost often differs from the official information.
The average cost of real estate in Podgorica is about 2 000 euro per square meter. In Budva, prices range from 2 000 euro to 10 000 and even 11 000 euro per square meter in elite areas. Real estate is cheaper in Kotor 2 000 euro It is extremely rare and, as a rule, these are old houses.
Mayevsky notes that there may be isolated offers on the market with lower prices, but they are often associated with legal or technical issues – for example, with incorrect documents or defects in the object itself.
Market Analyst Jovan Rabrenovic also believes that the real cost of housing is higher:
- В Podgorica It is difficult to find housing for less than 1 euros per square meter, and new finished apartments are already being sold at prices starting from 900 euros and up.
- В Kolasin The cost per square metre reached 2 euros, indicating that prices are rising even in regions that were previously considered affordable for buyers.
- On the coast, especially in prestigious areas Tivat, Budva и Herceg Novi, demand remains at a consistently high level, which also affects price growth.
Factors Affecting Price Growth
- High demand from foreign investors
Montenegro attracts the attention of foreign investors due to its geographical location, mild climate and economic development prospects. Coastal regions such as Budva, Kotor и Tivat, where there is increased interest in purchasing property for recreation and rental purposes. - Limited supply on the market
The construction of new residential complexes is not keeping up with the growing demand. This is due to the limited number of available land plots, especially in coastal areas, as well as lengthy procedures for approval and obtaining building permits. - Rising cost of building materials
Global trends such as rising raw material prices and supply chain disruptions have led to an increase in the cost of building materials. This, in turn, has affected the cost of construction and the final price of real estate.
Is it worth investing in real estate now?
When asked about the advisability of purchasing housing in the current conditions, experts give a positive answer.
"If possible, it is better to buy real estate now, even on credit. Mortgage rates and the total cost of housing do not exceed the potential benefit that can be obtained from the rise in prices," says Rabrenovic.
High housing prices are accompanied by an increase in rental costs. Currently, rents range from 300 to 1 euros depending on the region and type of property. Experts do not predict a decrease in rental rates in the near future.
Forecasts and recommendations for buyers
Experts agree, that in the short term a decrease in real estate prices in Montenegro is unlikely. Demand continues to exceed supply, especially in popular tourist areas.
Recommendations for potential buyers:
- Thorough market analysis: Before purchasing, it is recommended to study current offers, compare prices and conditions, and also pay attention to the development prospects of the selected region.
- Investment potential assessment: If the purpose of the purchase is an investment, it is worth considering the possibility of renting out the property, the expected profitability and the potential growth in the value of the property in the future.
- Cooperation with professionals: Turning to experienced realtors and lawyers will help to avoid possible risks and ensure the transparency of the transaction.
Guide to Buying Property in Montenegro in 2025: Step-by-Step Instructions with Examples and Cases
Thus, the real estate market of Montenegro remains attractive both for investors and for buyers wishing to purchase housing for their own residence. Despite the rise in prices, interest in real estate in the country does not weaken, and demand continues to exceed supply, which makes investments in housing promising and profitable.
