Is It a Buyer’s or Seller’s Market in Montenegro?

One of the most common questions people ask when they’re considering buying or selling a property in Montenegro is whether it’s a buyer’s or seller’s market right now.

And it’s not surprising considering that Montenegro’s real estate has been wild over the past couple of years and everyone wants to know where things are headed.

Understanding the current market conditions is crucial to making a smart decision that does not cost you your peace or money.

Read on as we explore what the current real estate market looks like in Montenegro and how you can take advantage of the house price trends, no matter if it’s a buyer’s market or a seller’s market.

Understanding What a Buyer’s and Seller’s Market Means

It’s essential to understand what a buyer’s market and a seller’s market mean in real estate before we dive into the specific conditions in Montenegro.

A buyer’s market occurs when supply outpaces demand. In simple words, it happens when there are more homes available than there are buyers. This gives purchasers more negotiating power and sellers compete for buyers by lowering prices and offering incentives.

A seller’s market emerges when demand for properties exceeds available supply or when there are more buyers than homes available. This creates favorable conditions for those looking to sell, driving up prices and limiting the buyer's ability to negotiate.

The question many are asking is whether it is a seller’s market right now. Or do buyers have the upper hand?

Montenegro’s Real Estate Market

Some real estate markets feel predictable but Montenegro isn't one of them right now. The numbers are pretty eye-opening. We saw property prices jump by over 20% in 2024 alone, with transaction volumes hitting €600 million. That's not just growth, that's explosive demand meeting limited supply.

You will find three different international buyers fighting over the same two-bedroom apartment. This same property would have sat on the market for months back in 2020.

There aren't enough properties to go around so buyers are competing against each other, often paying above asking prices just to secure a deal. And this is exactly what a seller’s market is.

Is It a Seller’s Market or a Buyer’s Market Right Now in Montenegro?

The Coastal Towns

In many areas of Montenegro, especially along the coast in towns like Budva, Kotor, and Tivat, it is a seller’s market.

These coastal places have turned into absolute gold mines for property owners.

The rental rates for a decent one-bedroom apartment in these towns now range from €450 to €1,000 per month. This is sometimes more than what locals earn in salary.

A two-bedroom apartment is being rented out for €700 to €1,100 per month. These numbers tell you everything about demand.

Some of the factors that are fueling the seller’s market include:

• Limited Inventory: There is a shortage of prime coastal properties compared to the number of buyers interested.
• High Demand: Foreign buyers, particularly from Western Europe, Russia, and the Middle East, continue to drive demand.
• Investment Potential: Montenegro’s path toward EU membership and its tax-friendly environment make it appealing for investors.

Northern Regions

It’s important to note that not all of Montenegro has the same story. Northern and Inland areas are more often than not a buyer’s market.

Areas like Žabljak and Pljevlja, have more homes available and fewer buyers, creating more of a buyer’s market scenario there which means better deals can be negotiated.

The Capital City

Now, the capital is interesting because it's not quite as crazy as the coast, but it's still very much a seller's market. Property prices in Podgorica hit €1,581 per square meter by the middle of 2023, which was a 13.5% jump from the previous year.

You might be looking for a house in Podgorica for six months and keep getting outbid. Most of the time, you will have to stretch your budget just to secure a decent apartment. That's the reality of the market in the capital city right now.

What Buyers Should Know in a Seller’s Market

Although this is tough territory for buyers right now, smart buyers still find opportunities and there are people purchasing homes at good prices even now. They're focusing on off-season purchases or looking at properties that need minor renovations.

Even in a seller’s market, buyers can still find value by being strategic and looking at homes that have been on the market longer, or considering properties just outside the hottest areas and the main tourist zones.

If you’re entering a seller’s market:

• Be prepared to act quickly: Desirable homes sell fast, sometimes just in a matter of days.
• Get pre-approved for financing: Sellers will take your offer more seriously if your finances have already been approved.
• Work with an experienced agent: Agents with local experience can help you identify opportunities before others do.

The International Factor

Foreign buyers are driving Montenegro's real estate market. Serbian buyers dominate with fewer Russians and way more Turkish investors stepping in. Germans and Americans are also showing up in bigger numbers.

When you’ve got international buyers with stronger currencies competing against local buyers, it creates a perfect storm for sellers. Properties that might have negotiated down 10% to 15% a few years ago are now selling at the asking price or higher.

How to Take Advantage of the Market

For Buyers

• Research areas that align with your budget and goals.
• Avoid peak tourist season if you’re looking for a bargain.
• Be clear about your must-haves and what you can compromise on.

For Sellers

• Highlight your home’s unique features, particularly if it’s in a competitive area.
• Work with a skilled agent who knows how to market to foreign and local buyers.
• Be ready for quick offers if your property is in a high-demand area.

The Future of Montenegro’s Real Estate Market

The projections for Montenegro's real estate market are pretty optimistic. We're looking at potential growth of 5.67% through 2029, with the residential market potentially reaching $24.78 billion by then.

People often wonder if they should wait for the market to shift in their favor. But in reality, timing the market perfectly is nearly impossible. The best approach is to make your decision based on personal circumstances and long-term goals.

If you’re buying and plan to hold the property for several years, even purchasing in a seller’s market can pay off over time. Similarly, if you’re selling, acting during a seller’s market can help you maximize your returns.

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Montenegro's real estate market is also influenced by the seasons. Spring and summer witness high demand and that's when you'll see the most competition and the highest prices. This is why some of the smartest buyers make their move during the winter.

So, is it a buyer's or seller's market in Montenegro? It's absolutely a seller's market, especially on the coast. But that doesn't mean smart buyers can't find opportunities, they just need to be more strategic, more patient, and sometimes more creative.

For sellers, now is your time. Properties are moving fast, often at or above asking prices, and the international demand shows no signs of slowing down.

Montenegro's real estate market is hot, competitive, and showing no signs of cooling down dramatically anytime soon. Whether you're buying or selling, understanding these dynamics and working with someone who really knows the local market can make all the difference between a great deal and a missed opportunity.

If you’re ready to take the next step, contact us today and our experienced real estate team will guide you through the process, whether you’re hunting for a dream home or looking to sell for maximum value.