Is It a Good Time to Purchase a Home Now in Montenegro?

Buying a property is one of the biggest financial decisions of your life and this is why you need to understand all the factors before making a decision.

Whether you’re thinking of relocating, finding a property for investing, or looking for your dream home by the sea, purchasing a home now in Montenegro seems both exciting and overwhelming.

With changing interest rates, rising property values across Europe, and global uncertainties, many are left wondering if now is a good time to buy a home in Montenegro.

So let's talk about purchasing a home now in Montenegro, because the landscape has changed dramatically in just the past two years, and not all of it makes sense.

Understanding the Current Market in Montenegro

Montenegro's real estate market doesn't follow the same rules as other places in Europe like Germany or France. We're talking about a country with a population of 600,000 that attracts millions of tourists every year. This creates some unique dynamics.

Montenegro’s property market has evolved considerably over the past decade. Just a few years back, when showing properties to the clients you had to explain how Montenegro is this ‘hidden gem’ that wouldn't stay hidden much longer.

But now, it’s a popular destination for investors, foreign buyers, and retirees.

The country’s low tax policies and beautiful coastline along with the simplified residence process have helped drive demand in the last few years.

Montenegro’s real estate market showed moderate price increases in 2024, especially in cities like Tivat, Kotor, and Budva. However, if we compare the prices to those in Western Europe, they remain relatively affordable.

In 2025, the pace of development keeps quickening and premium properties are starting to sell faster. So, if you want to buy a property in Montenegro and you’re waiting for a massive price drop, you may be waiting a while. But if you’re looking for value in a growing market, now might be the time.

Let’s break down whether buying a property in Montenegro right now is good with clarity and context as well as local insight so you can make an informed decision.

Is It a Good Time to Buy a Home in Montenegro?

The one question that everyone keeps asking is ‘Is it a good time to buy a home in Montenegro?’ expecting an answer in the form of a simple ‘yes’ or ‘no’. But there’s no simple answer.

If you're buying a vacation home and you've got the money, then yes, probably any time is a good time. You're not worried about property values because you're buying lifestyle, not investment returns.

If you're a young Montenegrin couple trying to buy your first home in Podgorica or Nikšić, then honestly? This market sucks for you right now. This is because the local salaries haven't kept pace with property prices, and you're competing against buyers with euros and dollars.

But if you're a foreign investor looking for EU candidate country exposure, or someone who genuinely wants to relocate here permanently, then the calculation is different. Montenegro's still cheaper than most Western European coastal areas and the residency requirements are reasonable. The quality of life here is genuinely good too.

However, the keyword here is relocating ‘permanently’. A lot of people buy here thinking they'll rent it out when they're not using it, only to discover later that property management from a thousand kilometers away is a nightmare.

Is It a Bad Time to Buy a House in Montenegro?

Let’s talk about why some people are saying it is a bad time to buy a house in Montenegro right now.

Firstly, the prices have gone absolutely crazy in the popular areas. Budva, Kotor, and Herceg Novi, all are seeing properties that sold for €80,000 in 2020 now asking €150,000. Same property in the same area with the same condition, just different market timing.

A seller who bought a two-bedroom apartment in Budva in 2021 for €95,000 is now asking €170,000 because he believes that’s what the market will bear. The place is a nice place but nothing special, at a decent location but not waterfront.

Maybe someone will pay for it. But that's not sustainable growth.

Secondly, the infrastructure hasn't kept up with demand. We've got new developments going up everywhere, but the roads, water systems, and electrical grid are still designed for a much smaller population. There are many beautiful new apartments that lose water pressure every evening when everyone comes home from work.

Thirdly, the legal framework is still developing. Property rights are generally secure, but the bureaucracy can be mind-numbing. Transactions can take eight months to complete because someone in the cadastral office needs additional documentation that wasn't required the month before.

Having said all this, the bad timing is pretty relative. If you're comparing prices from five years ago, it looks expensive. If you're comparing similar properties in Croatia or coastal Italy, Montenegro still looks like a cheaper bargain.

The Reality for Foreign Buyers

Most of the international clients ask if it is wise to buy a house now in Montenegro, and the answer depends entirely on why you're buying, what you're comparing it to, and the current house price trends.

Some German clients are thrilled to pay €200,000 for a sea-view apartment that would cost €500,000 in Bavaria and American clients think everything here is incredibly cheap compared to California real estate.

But there are also clients who bought real estate at the peak in 2007 and are still waiting to break even. So, remember that real estate markets always go up and down, no matter the city or the country.

Smart foreign buyers are the ones who are not trying to time the market perfectly. They're buying because they genuinely want to spend time here and they understand all the risks.

Tips for Buying a Home in Montenegro Now

Here’s one thing you need to understand; buying property in Montenegro isn't just about the transaction. It's about understanding that you're buying into a different pace of life.

The paperwork can take longer and the utilities sometimes don’t work. But you’ll find a different lifestyle here. You can have peace, a sea-front villa, and drive from the mountains to the sea in just ninety minutes.

If you’re ready to purchase a home in Montenegro now, here’s how you can start: 

1. Schedule a Visit: Start with a visit and spend time in different cities or villages before deciding what suits your expectations more.
2. Hire a Local Lawyer: Legal advice is critical for avoiding pitfalls and making sure you get the best deals.
3. Work with a Reputable Real Estate Agent: Someone with local experience and good reviews.
4. Get a Valuation: Even if you’re not making a purchase right now, it’s wise to get an independent opinion on value.
5. Understand Tax Implications: Especially if you plan to rent or sell your property later on.

We have clients who moved here and love it. We also have clients who moved here and moved back within two years.

It’s all about finding a property that suits your needs and a real estate agent who will help you through the process.

Hire a Reputable Real Estate Agent

If you're thinking about buying or selling a home now in Montenegro, here's what you need to understand: the markets will always rise and fall.

Purchasing a home now in Montenegro could offer long-term value and a stable investment in a growing market for clients who’ve done their research and understand all the risks.

Just be sure to proceed with the right team behind you. An experienced agent can truly make or break your experience.

If you’re still asking yourself if it is a good time to buy a home, contact us today to talk to our real estate experts about your options in Montenegro.