Best Places to Buy Rental Property: Why Montenegro Is Becoming a Global Favorite

In an increasingly unpredictable global economy, smart investors are turning their focus toward income-generating real estate.

But while the usual hotspots like New York, London, and Dubai get all the attention, savvy property seekers are now asking a more strategic question: What are the best places to buy rental property in the world that still offer room to grow?

Some of the smartest money is flowing into markets that five years ago, nobody was talking about.

This is where the small Balkan country of Montenegro comes in, which is quietly emerging as one of the best places to buy rental property, and for good reason.

While everyone's fighting over overpriced markets in traditional hotspots, there's a quiet revolution happening in places most investors haven't even considered yet.

This article will explore what makes a location ideal for rental investment, highlight global favorites, and then explain why Montenegro deserves a top spot on your list.

What Makes a Location Ideal for Rental Property Investment?

Before diving into countries and regions, let’s set the benchmark for what makes a location ideal for rental property investment.

The pandemic rewrote the rules completely. Remote work didn't just change where people live; it changed where they want to vacation. Suddenly, that ‘remote’ location isn't a disadvantage anymore. It's exactly what people are seeking.

The best places to buy rental property typically share some key attributes:

• High rental demand from locals, expats, or tourists
• Affordable property prices relative to income potential
• Stable or growing economies
• Favorable tax and investment laws
• Appealing lifestyle amenities

While many global cities tick a few of these boxes, very few tick all, that’s where Montenegro becomes interesting.

But here's the catch: you need to know where to look and how to evaluate these opportunities properly.

Best Place to Invest in Real Estate in the World

When evaluating the best places to invest in real estate in the world, look for a specific combination of strong rental demand, reasonable entry costs, and positive economic trends.

It's rare to find all three, but when you do, magic happens.

Portugal

Portugal has been on the radar for years, especially after it launched their Golden Visa program. The rental market in Porto is absolutely booming, driven by digital nomads and students.

Property prices are rising quickly, but rental demand has kept pace.

Georgia

Georgia, the country, not the state, has surprised everyone completely.

Tbilisi offers incredible value, and its visa policies are among the most investor-friendly.

With ultra-low property prices and a growing expat scene, Georgia is an underdog favorite. The rental market is developing rapidly, especially in areas popular with international residents.

Mexico

Popular among North American investors, Mexico combines affordability with tourism demand.

Mexico's Caribbean coast continues delivering strong returns, particularly in areas like Playa del Carmen. Yes, it's more mainstream now, but the fundamentals remain solid.

Strong tourism, a growing expat community, and reasonable property prices create a sustainable rental market. However, investor protection laws can vary, so local legal guidance is crucial.

Dubai

Dubai offers high rental yields and no income tax, making it a favorite for ROI-focused investors. Still, oversupply in some areas can dilute returns.

Montenegro

And finally, Montenegro, where the Adriatic coast meets mountain serenity and where real estate prices are still reasonable compared to its neighbors.

Montenegro is actively aligning itself with EU regulations and infrastructure standards. This positions the country for significant long-term value appreciation, especially once accession finalizes. Simply put: buying now means buying early.

The best place to invest in real estate in the world isn't necessarily the most obvious choice. It's where supply and demand are moving in your favor, where you can still buy at reasonable prices, and where economic trends support long-term growth.

Is Montenegro a Good Investment?

Montenegro has one of the fastest growing real estate markets and it offers something that's almost extinct in Western Europe: affordable beachfront property with genuine rental potential.

While a comparable apartment in Nice or Barcelona costs €500,000+, you can still find quality properties here for €150,000-250,000. The rental yields? Often double what you'd see in established markets.

But it's not just about the numbers. Montenegro joined NATO, is pursuing EU membership, and has been steadily improving its infrastructure. The country introduced a digital nomad visa, making it incredibly attractive for remote workers.

While there's still time to get in this amazing market, the window is closing fast. There’s an increase in international buyers every season, and the locals are starting to catch on to what their properties are actually worth.

Why Montenegro Is One of the Best Places to Buy Rental Property in the World?

Working in Montenegro's real estate market teaches things you won't read in investment guides. Here are some key reasons that make Montenegro one of the best places to buy rental property in the world.

Easy Foreign Ownership Laws

First, the bureaucracy is actually manageable, especially compared to some EU countries. Foreign ownership is straightforward, especially when handled with a reputable local real estate broker.

And the legal system, while not perfect, is predictable. Montenegro allows 100% foreign ownership of property, which removes a major hurdle that often complicates investing abroad.

Tourist Demand

The tourism boom here isn't just about numbers; it's about quality.

Montenegro attracts visitors who appreciate natural beauty, authenticity, and value; exactly the kind of guests who treat rental properties well and return annually.

The tourist boom directly feeds into short-term rental demand, particularly in towns like Kotor, Budva, and Herceg Novi.

Infrastructure Improvements

Infrastructure improvements are happening constantly.

New roads, upgraded airports, and better internet are all the fundamentals that support property values and rental demand. The government clearly understands that tourism is its golden goose, and it's investing accordingly.

Montenegro’s EU Path and Economic Growth

What’s really exciting is Montenegro's positioning for EU accession.

When that happens, and most experts think it's when, not if, property values will likely adjust upward to align with EU market standards. Early investors could benefit significantly from this revaluation.

Buying a Rental Property in Montenegro

Here are a few types of rental properties and the reasons that make them profitable:

• Short-Term Rentals (Airbnb-style): Most profitable during summer in coastal towns. Best suited for vacation-style properties with good amenities.
• Long-Term Rentals: Ideal for students, professionals, and expats in cities like Podgorica or Tivat. They provide you with a steady and year-round income with less turnover.
• Luxury Villas and Waterfront Properties: Higher capital gains over time, and increasingly popular for foreign buyers seeking second homes or retirement havens.

Ultimately, the most profitable asset is one that is well-located and aligned with your investment timeline.

Start with your budget and keep a real budget, not wishful thinking.

Include purchase costs, renovation needs, furnishing, legal fees, and at least six months of carrying costs. Most investors underestimate total initial investment by 20% to 30%.

Research visa requirements and tax implications in your home country. Some jurisdictions have specific rules about foreign rental income that could impact your returns. Get professional advice before committing.

Visit potential markets personally. Photos and videos don't show you neighborhood dynamics, actual property conditions, or local management quality. The investment is too large for remote decisions.

Build a local team before you need them. Hiring a property manager, an accountant, and a lawyer makes the process smoother.

Buy Real Estate before the Boom

The rental property landscape is evolving rapidly. Traditional strongholds are becoming increasingly expensive while emerging markets offer genuine opportunities. The key is identifying these opportunities before they become mainstream knowledge.

Montenegro represents exactly this type of opportunity. It’s a market with strong fundamentals, reasonable entry costs, and positive momentum.

The best places to buy rental property today might not be the obvious choices. Your next rental property investment could be closer than you think, in a market you haven't considered yet.

If you're ready to explore how Montenegro can fit into your real estate strategy, contact us today, and our experienced local brokers can help you navigate the market with ease.