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Property in Budva: market overview and current trends

Home » blog » Property in Budva: market overview and current trends

The pearl of Montenegro is famous for its beautiful coastline, mild climate and developed infrastructure. Property in Budva is increasingly attracting foreign investors, tourists and those looking for an ideal place to live. It is a location that combines the beauty of nature, culture and comfort of modern life.

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Overview of the property market in Budva

Property in Budva is presented in a wide range: from modern apartments in new buildings to elite villas overlooking the Adriatic Sea. The market is oriented towards both local and foreign buyers.

Features:

  1. High demand for housing by the sea. Flats with panoramic views are popular among tourists and investors.
  2. Affordable prices compared to other holiday regions in Europe. In contrast to the Mediterranean, the cost of properties is moderate, which attracts buyers from all over the world.
  3. Steady price growth. The annual increase in property values in Budva is between 5% and 10%, especially in prestigious areas.

Current trends in the Budva property market

The property market reflects both global and local trends.

Growing interest in luxury property

Premium villas and luxury apartments with exclusive design and private pools are becoming increasingly sought after. Such properties are bought not only for living, but also as an investment for renting out.

Popularisation of renting

Renting out flats and villas for short term stays brings the owners a high income during the tourist season. In July and August, luxury rentals reach their peak, generating profits of up to 8-10% per year.

Increased demand for environmentally friendly homes

With the growing popularity of green building, investors and developers are beginning to consider sustainable technologies. New projects often include energy-efficient systems and the use of natural materials.

Popular areas to buy property in Budva

Each neighbourhood in the city has its own unique atmosphere, infrastructure and price range, allowing you to choose the perfect place for a variety of purposes, from permanent residence to investment.

Old Town: the charm

The historic heart of the region is full of culture and medieval atmosphere. Narrow cobbled streets, ancient stone buildings and cosy squares make this area truly unique. There are boutiques, cafés, restaurants and museums, creating the perfect blend of history and modern life.

Features of real estate in the Old Town of Budva:

  1. Architecture: most of the buildings are historic properties with unique facades and design.
  2. Infrastructure: everything you need is within walking distance, including beaches, marinas and attractions.
  3. Prices: the cost of housing here starts from 3,000 euros per square metre, which is due to the prestigious location.

Bečići neighbourhood: modernity and comfort

Becici is a modern resort area known for its wide sandy beaches, which have been repeatedly awarded international prizes for cleanliness and convenience. The location is ideal for both holidays and long-term investments.

Features:

  1. Residential complexes: in Becici there are new buildings with swimming pools, gyms and protected areas.
  2. Access to the sea: most properties are within walking distance of the beach.
  3. Prices: flats range from €2,000 to €3,500 per square metre.

Sveti Stefan: an elite choice

Sveti Stefan is a luxury resort with a secluded atmosphere. The area is famous for its premium villas and panoramic views of the Adriatic Sea. Sveti Stefan has become a symbol of elite holidays and status accommodation.

Features:

  1. Real estate: high-end villas and apartments, often equipped with swimming pools, terraces and garden areas.
  2. Privacy: the neighbourhood is ideal for those who value privacy.
  3. Prices: property prices start from €5,000 per square metre.

Rafailovici neighbourhood: balance between convenience and silence

Rafailovici is a quiet and cosy area with affordable prices and developed infrastructure. This place is ideal for family living and long-term rentals.

Features:

  1. Infrastructure: Rafailovici has shops, schools and medical facilities.
  2. Beaches: the area is known for its well-maintained beaches, which are ideal for holidays with children.
  3. Prices: flats can be purchased at prices ranging from 1,500 to 2,500 euros per square metre.

Property prices in Budva

The property market in Budva is diverse, allowing you to find options for every budget. The average cost of properties depends on the neighbourhood, type of housing and its characteristics:

  1. Apartments in the centre: from 1,500 to 3,000 euros per square metre. Central areas offer easy access to infrastructure and beaches.
  2. Sea view properties: from €2,500 per square metre. A panoramic view of the Adriatic Sea greatly increases the price of the property.
  3. Luxury villas: from €3,000 per square metre and up, depending on the level of luxury and additional amenities.

Additional Costs:

  1. Property purchase tax: 3% of the value.
  2. Notary and lawyer services: from €1,000 to €2,000 depending on the complexity of the transaction.
  3. Annual property tax: about 0.1% of the cadastral value.

Investment potential of real estate in Budva

The city has long established itself as one of the best places to invest in Montenegro. The constant tourist flow and growing demand for rentals make property in Budva a highly profitable asset.

Benefits of investing:

  1. Rental income: during the tourist season, rental income can reach 100-300 euros per day per flat or villa.
  2. Growth in property values: annual price increases in popular neighbourhoods are 5-10%.
  3. Residence permit programme: the purchase of a home worth €250,000 or more allows foreign investors to obtain a residence permit.

Investment risks and how to minimise them:

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  1. Choose prestigious neighbourhoods with developed infrastructure.
  2. Only work with trusted property developers and agents.
  3. Research the market and analyse the long-term prospects of the property.

Conclusion

Property in Budva offers excellent opportunities for living, recreation and investment. The city in Montenegro attracts with its natural beauty, developed infrastructure and market growth prospects. Before buying, it is important to study all aspects, from the choice of neighbourhood to additional costs, to make the deal as profitable and safe as possible. Regardless of the purpose of buying property – whether it is an investment or searching for the perfect place to live, Budva remains one of the best options on the Montenegrin market.

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How to earn money from renting a flat in Montenegro: expert tips

Montenegro has long ceased to be just a picturesque dot on the map. The transition from a tourist paradise to an investment-attractive territory took place imperceptibly, but the effect was loud. The demand for rental property on the coast and in the capital does not decrease neither in winter nor in summer, and the owners of housing form a steady stream of profit.

How to make money from renting a flat in Montenegro is a question that has long been of interest not only to locals, but also to investors from the EU, CIS and the Middle East. Let’s talk about it in more detail below.

Geography of income: where the flat is working and where it is idle

The Montenegro market behaves unevenly: Budva, Kotor and Tivat generate income most often. In these cities, the tourist flow covers the needs of tenants even in the off-season. Podgorica, on the other hand, is more often used for long-term rentals – expats, employees of international companies, and IT specialists rent accommodation for a year or longer.

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How to earn on renting a flat in Montenegro in these zones?

The formula is simple: buy an apartment closer to the sea, invest in basic repairs, connect to rental platforms, and the property starts to yield results.

Example: housing in Budva on the first line with a starting price of €150,000 and a rental rate of €80-100 per day can pay off in 10-12 years at 60% annual utilisation.

How much you can earn from renting a flat

The annual yield on short-term leases reaches 6-10%. But this figure holds only with competent management, price adaptation and correct tax scheme.

In high season (June-September) daily rent in Budva or Tivat varies from €70 to €150 depending on the area and sea view.
In the off-season (October-April) the rates drop to €25-40 for short-term rentals to tourists.

Earnings from renting a flat in Montenegro require precise calculations: cleaning costs, platform commissions, maintenance, internet, taxes. Net profit comes out at an average of €5,000-7,000 per year from one economy-class property with 60-70% occupancy.

Who rents and for how much

The income from renting a flat in Montenegro is different depending on the audience. Tourists from Germany, Poland, Russia and Israel are looking for accommodation for 7-10 nights. Families focus on locations with kitchen and parking, digital nomads prefer good communication and workplace.

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How to rent a flat in Montenegro to tourists effectively means adjusting to their lifestyle. Housing with minimalism in design, fresh appliances and cleanliness sells itself even without photo shoots from architects. Connecting to Airbnb, Booking, Flatio and local websites gives you reach, while automating the process gives you time and freedom.

Key drivers of profitability

How to make money from renting a flat in Montenegro while maximising your return on investment? Play by the rules, but strategically. The main factors of income:

  1. Location. Closer to the sea – higher rates. At a distance of more than 1 km – minus 20-30% of the average rate.
  2. Condition of the flat. Housing after renovation with air conditioning and wi-fi is 30-50% more expensive than analogues without equipment.
  3. Photos and description. Original design, honest photos, up-to-date reviews are the basis for high conversion rates.
  4. Support. The presence of a local manager or agency increases utilisation by 15-20%.
  5. Seasonality. Competent pricing strategy – retention of income in winter and profit growth in summer.

All five factors work in tandem: a dip in one reduces overall profitability. Maximum profit is achieved only with a systematic approach, where marketing, service and location complement each other.

How to manage your income without fuss

Passive income from property in Montenegro turns into reality with the participation of a management company. The cost of such services is 15-30% of the income. This includes:

  • socialising with guests;
  • cleaning organisation;
  • dealing with current issues;
  • Reporting.

The turnkey format is suitable for those who do not live in the country permanently. It is often chosen by every second investor.

Mandatory items: taxes, registration, legal support

How to earn money from renting a flat in Montenegro, while respecting the law? There is no way without registration. The owners are obliged to:

  1. Obtain licences for tourist rentals.
  2. Register guests.
  3. Pay income tax – 9 per cent on net profits.
  4. Pay the tourist tax.

Deviations from the rules carry fines of up to €6,000. Therefore, legal support is not a luxury, but a protection of profits.

One object – three strategies: the format of renting for income

Earnings from renting a flat in Montenegro are formed from the chosen approach. Comparison of three tactics:

  1. Short term rentals to tourists. High rate – high involvement, seasonality.
  2. Long term lease to expats. Stability – lower income, requires contracts.
  3. Mix: in-season + out-of-season. Profit maximisation – need for flexible management.

Income with a competent alternation of formats is higher by 10-15% than if you choose only one scheme.

How to earn money from renting a flat in Montenegro: tips from the pros

Practice shows that it is not the metres that generate profitability, but the approach. Efficiency grows when housing becomes an independent profit-making tool.

The advice of experienced investors boils down to a few principles:

  1. Focus on liquid neighbourhoods: Budva, Tivat, Bar.
  2. Buy no more expensive than €1,800 per m² – higher the payback threshold.
  3. Rent through multi-platform access: Airbnb, Booking, DobrotaRent.
  4. Automate check-in and payment.
  5. Renovate the interior periodically.
  6. Conduct a photo shoot once a season.

This strategy allows you to consistently maintain a high average cheque and reduces downtime. As a result, housing works not in theory, but on a daily basis, generating measurable income. These actions increase profits and relieve the owner of routine workload.

Investor in law: why investing works

An investor investing in property in Montenegro gets more than square metres. The state grants residence permit for property purchase, simple taxation system and growing flow of tourists (more than 2.6 million in 2023).

With a starting investment of €80,000 or more, the project generates income higher than in Bulgaria, Greece and Croatia. Price growth of 6-8% per year turns the property not only into a source of income, but also into an asset that appreciates in value.

How to earn money from renting a flat in Montenegro: conclusions

How to make money from renting a flat in Montenegro is not a guess, but a clear strategy. With proper management, site selection, legal registration and marketing – renting turns into a predictable, stable business with high margins.

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