How to Buy Real Estate in Montenegro: Price Analysis by Region and Purchase Procedure

Real estate prices in the coastal cities of Montenegro have increased by 49% over the past year, and in prestigious areas, the cost per square meter has already reached 10,000 euros. Despite such growth, this Balkan country remains one of the most attractive destinations for buying housing by the sea — both for personal use and for investment.

Foreigners can easily buy real estate in Montenegro — this applies to both individuals and legal entities. Read on to learn about the step-by-step procedure for completing a transaction, the cost of apartments in different cities of the country, taxes, and mortgages.

Important. Foreigners in Montenegro are prohibited from buying land plots whose area is more than 5 thousand square meters. If you want to buy land in this country, you must register a company in Montenegro.

Step-by-Step Procedure for Buying Property in Montenegro

What does the process of buying look like in steps:

1. Choose a property to buy and check it thoroughly.

You should make sure that there are no debts on the property, and you should check the documents to make sure there are no mistakes or inaccuracies. A notary usually performs all of these tasks before you sign the contract.

2. Reserve the property by making an offer to the seller.

Once you have chosen the right object, make an offer to the seller, preferably in writing. You also need to pay a deposit of 10% of the purchase price to reserve the object.

3. Prepare the contract of sale.

There are two options — to sign a preliminary (predugovor) or main (ugovor) contract. A preliminary agreement is usually signed when purchasing an object under construction or if one of the parties insists on it for one reason or another. Both types of contracts shall be made and certified by a notary.

Important! If the buyer refuses the deal after signing the contract, by law the deposit will not be returned. If the seller is responsible for the failure of the deal, he must return the deposit in double.

4. Pay all transaction costs (the value of the property, taxes, and fees).

Usually, the payment for the object is made in non-cash form from an account opened in a bank in any country to the seller’s or notary’s account.

Notary fees are up to 0.01% of the value of the property.

Also, after signing the contract of sale, the buyer must pay property turnover tax — 3% of the market value of the object. Purchase of new buildings from a legal entity — a VAT payer — is not taxed.

Important. From January 1, 2024, tax policy in Montenegro must change slightly. The fact is that on February 10, 2023, the government proposed amending the law on real estate transfer tax. The essence of the amendments is as follows:

• The tax rate for properties worth up to €150,000 will not change and will be 3%. 
• For properties worth between €150,000 and €500,000, the tax will consist of two parts: €4500 in fixed taxes plus 5% of the difference in property value. 
• New owners of secondary luxury real estate will have to pay a fixed rate of €22,000 and add 6% of the difference in value. 

5. Register the title of ownership.

You must register your ownership with the Montenegrin cadastral office within 30 working days of signing the contract. The registration fee is 0.5% of the property's cadastral value.

Buying a Home in Montenegro with a Mortgage

Foreigners have the right to take a loan from a Montenegrin bank for the purchase of real estate, and to do this is not difficult. At the same time, the bank may request various documents confirming the solvency of the buyer.

When you sign a mortgage agreement, the money will automatically be transferred to the seller’s account after the transaction is completed. The transaction will go faster if you have previously opened an account with a Montenegrin bank.

Current Prices for Residential Real Estate in Montenegro

The Statistical Office of Montenegro (MONSTAT) regularly publishes data on the average price per square meter of apartments in new buildings depending on the region of the country. The Statistical Office of Montenegro identifies the following regions within which it determines the average price per square meter:

• Podgorica is the capital of the country.
• The Littoral Region includes the cities of Bar, Budva, Herceg Novi, Kotor, Tivat, and Ulcinj.
• The Central Region includes the cities of Cetinje, Danilovgrad, Niksic, Tuzi, and Zeta.
• The Northern Region includes the cities of Andrijevica, Berane, Bijelo Polje, Gusinje, Kolasin, Mojkovac, Petnica, Plav, Pljevlja, Pluzine, Rozaje, Šavnik, and Žabljak.

Purchase and sale transactions involving apartments in new buildings include transactions between the developer and the buyer.

According to the results of the 2nd quarter of 2024, the highest average price per square meter among all the analyzed territories was in the Primorska region — 2107 EUR/sq.m. Compared to the previous quarter, the average price increased by 13%, and over the year the price increased by 49%. Over 5 years, the average price in this region has increased by 71%.

The next region in terms of the average price on the primary market is the capital of the country - Podgorica. Here, according to the results of the 2nd quarter of 2024, the average price per square meter was 1763 EUR / sq.m, which is similar to the price in the 1st quarter of this year. This is 12% more than in the 2nd quarter of 2023. Over 5 years, the average price on the primary market has grown by 81%.

Next is the northern region of Montenegro, where the average price was set at 1,200 EUR/sq.m. The growth compared to Q1 2024 was 10%, and a year ago the price on the primary market of the Northern region was similar to the current one. Over 5 years, the average price in this region has increased by 51%. The region with the most affordable prices is the Central region. Here, the average price per square meter was 960 EUR/sq.m., which is similar to the price in the previous quarter — over the year, the price increased by 34%, and over 5 years by 43%.

The Realting platform presents over 10,000 offers for the sale of residential real estate in Montenegro. Most of these properties are located in the Primorsky region of the country — in the cities of Budva, Bar, Tivat, Becici, and their suburbs. These cities are located on the Adriatic coast and are popular tourist destinations with many resorts and historical and cultural sites. All 4 cities and their suburbs are famous for their beaches and Mediterranean nature. Let's consider what average prices for the sale of apartments and houses have been established in these cities:

Budva and Suburbs

The most popular resort in Montenegro. Real estate here is in high demand among both tourists and permanent residents.

Bar and Suburb

The second largest port in the country with more affordable real estate prices compared to Budva. The city attracts with its picturesque embankment, many beaches and good transport accessibility.

Tivat and Suburbs

A port city known for its prestigious Porto Montenegro marina and proximity to the airport, it has the highest property prices in the country, thanks to the area's elite status and a steady influx of wealthy buyers.

Becici

A popular holiday village near Budva that offers a quieter atmosphere than Budva, but with the same high potential for real estate investment.

Podgorica 

Podgorica is the capital and the largest city in the country. Compared to the above-mentioned cities, it has a much more modest tourist appeal due to the fact that it is not located on the coast and therefore lacks seashore beaches and resorts. The city is not a tourist center and its investment attractiveness is much lower than that of cities located on the coast.

Prices for residential real estate in Podgorica are an order of magnitude lower than in coastal cities.

The residential real estate market in Montenegro has been on the rise in recent years. Many experts in the Montenegrin housing market agree that prices should not be expected to fall anytime soon, as there are currently many factors in the country that have a positive impact on prices – economic development, growth in approved housing loans, increased demand and solvency among buyers. 

It is also worth noting that Montenegro attracts many foreign investments in real estate, with most of these investments going to real estate in resort towns. It is in coastal towns that prices are growing the fastest – in some prestigious areas, the price per square meter can start at 10,000 EUR.