Real Estate in Montenegro: Apartment Prices Hit Record Highs as Coastlines Turn into Luxury Zones (2025)

Real estate prices in Montenegro continue to break new records. According to the latest report from the Monstat Statistical Office, the average price per square meter in new buildings reached €2,201 in the second quarter of 2025 the highest level ever recorded. The increase is especially dynamic along the coast, where the average price per square meter exceeds €2,328. Luxury projects in Tivat, Budva, Bar, and Kotor are driving the market even higher.

For those considering buying property by the sea, it’s worth noting that Montenegro is rapidly becoming not only a desirable living destination but also a reliable investment hub, entering the category of premium destinations.

Record Numbers and Price Growth Dynamic

• Average price per m² nationwide: €2,201 (Q2 2025)
• Podgorica average: €2,108/m²
• Annual increase: around 20%, or roughly €350/m²
• Price rise compared to 2023: over 50%

At the same time, the Central Bank of Montenegro highlights growing foreign buyer activity: in the first half of 2025, foreign investors spent €228 million on real estate €29 million more than the previous year.

In popular cities — Budva, Kotor, Tivat, and Bečići — official data shows that prices are higher than ever. Finding a modern apartment now costs no less than €2,000/m², while seafront developments typically start between €2,500–3,000/m².

Factors Driving Price Growth

1. Strong foreign demand: Buyers from Russia, Turkey, Germany, and Western Europe see property as both an investment and a path to residency.
2. Limited supply: Many apartments are sold during construction; the secondary market has few options, and current owners are in no rush to sell, expecting further appreciation.
3. Favorable credit conditions: Lower mortgage rates are boosting local demand, with young families taking advantage of loans, further stimulating the market.
4. Large-scale investment projects: New international developments are transforming the coastline’s appearance.

New Coastal Project

Several ambitious developments are currently under construction along Montenegro’s coast:

• Tivat & Kotor: Lustica Bay (Heights & The Peaks), Boka Place / Porto Montenegro, Tivat Hotel & Residences, Miramare, Radisson Blu Tivat (opening planned for 2027), Royal Town Kotor (premium residential complex, 2026–2027).
• Budva & Bečići: Swissôtel Residences Riviera Montenegro, Meliá Budva (mixed-use hotel and 294 apartments).
• Bar & Čanj: Pullman Resort & Residences Bar, Amma Resort / InterContinental Čanj (~483 apartments, investment ~€77 million).
• Herceg Novi: Royal Collection Kumbor and The Portons — branded hotel + private residence projects with international operators.

These developments are not only reshaping the coastline but also raising the standard of luxury living and attracting high-end buyers.

Will Prices Drop?

Many locals hope for a slowdown, but analysts see no signs of a downturn:

• In Podgorica, construction costs are already around €1,674/m². Including land preparation, the total cost adds another €264/m², leaving little room for price reductions.
• Demand exceeds supply — units in new developments are often sold out before completion.
• Foreign investments and the premium tourism trend continue to support the market.
• Golf clubs, marinas, and world-class hotels make the coastline increasingly attractive.

Moreover, the arrival of brands such as InterContinental, Radisson, Pullman, Meliá, Swissôtel, and Mövenpick is pushing up the “branded seaside residences” segment. Prices for these serviced apartments are typically 20–30% higher than for regular residential units.

What It Means for Buyers and Investors

• For the overall market: The premiumization process will continue. Montenegro is increasingly competing with Croatia and Greece as a high-end destination for affluent buyers.
• For individual buyers: If you plan to buy a seaside apartment, now is likely the best time — the entry threshold will only rise in the future.
• For investors: Internationally branded projects offer strong return potential. Additionally, property ownership in Montenegro remains an appealing route to residency (or digital nomad status), further fueling demand.

Conclusion

As of 2025, Montenegro’s real estate market has firmly established itself as a premium segment. The average price per square meter in new buildings now exceeds €2,000, with coastal areas consistently higher. Strong demand, limited supply, and large-scale developments leave little room for price declines. Montenegro’s coastline is no longer just about square meters — it represents a lifestyle, comfort, and long-term value for both residents and investors alike.