Montenegro's resale market in 2026: prices, analysis, and yields 30% higher than new builds

1. The State of the Montenegro Real Estate Market in 2026

By 2026, the Montenegrin real estate market had completely transformed from a "seasonal destination for summer cottages" into one of the most attractive investment hubs in the Adriatic. Today, resale properties in Montenegro are experiencing unprecedented demand, as buyers seek stable, occupancy-ready assets. Despite the overall price increase, there are still localized opportunities to purchase affordable real estate in Montenegro, particularly in the developing areas of Bar and the north of the country, making entry accessible to private investors. The main driver of this growth was Montenegro's status as a leading candidate for EU membership, which has triggered an influx of long-term capital from Europe and the CIS countries.

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In this article, our experts will explain where to buy resale property in Montenegro profitably, as well as why the ROI (return on investment) of such apartments is 30% higher than that of apartments in new buildings.

1.1. Why interest is shifting from the primary market to completed properties

While just a few years ago, investors were hunting for "bare bones" in hopes of a quick speculative return, in 2025, buyer preference has shifted significantly toward existing homes and completed new buildings. Three key factors contribute to this:

• Global inflation and rising construction material logistics costs have made early-stage purchases less predictable. Buyers prefer to pay a 10-15% premium to get the keys here and now.
• Obtaining a residence permit in Montenegro based on real estate ownership requires a title deed. Completed properties allow the relocation process to begin immediately.
• The best waterfront plots are already developed. By purchasing resale properties in historic centers or established areas, investors gain access to infrastructure that can take years to build in new projects.

1.2. The Impact of European Integration on Demand and Liquidity of Resale Properties

Montenegro is in the final stretch before joining the EU, and this factor has become a "golden ticket" for owners of square meters. The anticipation of the transition to EU standards is having a direct impact on the market:

• Large European funds have begun acquiring liquid resale properties in the Bay of Kotor, viewing them as assets that will appreciate by at least 30-40% immediately after the country's official accession to the union.
• The expected introduction of strict European energy efficiency standards has increased demand for high-quality secondary housing built in recent years to modern standards.

2. Why the ROI of resale housing is 30% higher than new construction

By the end of 2025, the Montenegrin real estate market had undergone fundamental changes. While the new construction segment was facing rising material costs and a shortage of liquid development space, the resale market was demonstrating record return on investment (ROI). Analytics show that the net return on investment (ROI) from resale housing is currently, on average, 30% higher than that of the new construction sector.

2.1. Comparative ROI Analysis: Renting a Finished Property vs. Waiting for Construction

• New construction: Average price increase during the construction period is 15-20%. However, for two years, the property requires installment payments and does not generate income.
• Resale housing: A completed property begins generating cash flow the day after the transaction. With an average long-term rental rate of 6-7% per annum and short-term (seasonal) rental rates of up to 10-12%, over two years of ownership, an investor receives 14% to 20% of the income from rental alone.

Considering that liquid resale properties in top locations (Budva, Kotor, Tivat) appreciate organically by 4-5% per year, the total return over the construction cycle of a competitive property is a third higher. You don't just save time—you put your capital to work without pause.

2.2. No risks of long-term construction and the possibility of immediate monetization

Safety is the main trend of 2026. The resale market offers investors a "physical asset" that can be touched, inspected, and visually assessed.

• In a completed building, it is already clear how the utility systems operate, how much noise there is from neighbors or nearby cafes, and how the property is managed. In a new building, these factors remain a "pig in a poke" until the building is completed.
• Resale real estate transactions in Montenegro are processed through a notary system with immediate registration in the cadastral register. There is no risk of developer bankruptcy or project freezes due to new EU environmental regulations.
• The possibility of immediate monetization allows investors to flexibly manage their portfolio. If market conditions change, selling a completed, liquid property is significantly easier than transferring a claim on an unfinished building.

2.3. Low entry barriers and high profitability in resale property renovation

The "Fix and Flip" strategy (buy, renovate, sell/rent out) will become a gold mine for private investors in 2026. Montenegro's resale housing stock offers enormous potential for added value.

• Apartments in resale buildings in central areas are often 25-40% cheaper than similar new buildings on the outskirts.
• Older properties occupy prime land plots—first and second lines from the sea—where new construction is currently virtually prohibited or extremely limited.
• Investments in high-quality designer renovations and utility upgrades (approximately €400-600 per square meter) can increase the property's capitalization by 40-50%.

Thus, investors obtain a property with premium residential characteristics in a location inaccessible to modern developers, with a significantly lower overall investment. This creates a unique competitive advantage on rental platforms and guarantees a high ROI.

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3. Existing Housing Price Forecast in 2026

The Montenegrin real estate market will enter a "mature growth" phase in 2026. After a period of volatility, prices have stabilized at a high level, with the existing sector demonstrating more stable growth than the new-build segment. Investors are increasingly favoring completed properties with a history of profitable growth.

3.1. Price Dynamics by Coast: Budva, Kotor, Tivat, Bar

The geography of demand in 2026 is clearly segmented by investment objectives:

Tivat: Maintains its status as the most expensive and prestigious region. Thanks to the development of Porto Montenegro and the expansion of the marina, prices here are showing a steady increase of 7-9% per year. Existing housing within walking distance of the sea is almost on par with luxury new buildings in terms of price.

Kotor: Due to UNESCO restrictions on new construction, existing real estate in the Old Town and along the Bay of Kotor has become a scarce asset. Prices for authentic stone houses have risen due to strong interest from Western European buyers.

Budva: The most dynamic market, with the highest transaction volume. Price dynamics are supported by the renovation of older neighborhoods and the conversion of Soviet-era apartments into modern boutique hotels.

Bar: Demonstrated the highest percentage growth (up to 12% year-on-year). This is due to the development of urban infrastructure, year-round activity, and a more affordable entry barrier compared to Boka.

3.2. Growth Factor Analysis: Land Shortage and Tourism Boom

The 2026 forecast is based on two fundamental factors that make price reductions impossible:

• Critical shortage of land for development: Most of Montenegro's coastal strip has already been developed. The introduction of new, stricter urban development plans (DUP) has significantly limited the issuance of building permits in frontline properties. This automatically redirects demand to the secondary market, where properties are already occupying prime locations.
• Record tourist flow: In 2025-2026, Montenegro will see an influx of tourists not only during the summer season but also during the off-season (digital nomads, relocators). A 15% increase in short-term rental yields over the past two years directly encourages investors to purchase ready-to-use lots for immediate business launch.

3.3. Average price per square meter in Montenegro by location (2026 forecast)

Based on current market trends and macroeconomic indicators, prices for high-quality existing homes are expected to stabilize in the following ranges by 2026:

Tivat and surrounding areas (including the Porto Montenegro area): The average price range here will be €4,200–€5,500 per square meter. Investors can expect moderate annual growth of around 7%, but the liquidity of properties in this location remains the highest on the coast.

Kotor Bay: The price per square meter is projected to be €3,800–€4,800. The main potential here lies not in price growth per square meter, but in high rental yields (ROI 6-8%), due to the unique location and the lack of new development sites.

Budva and Bečići: The country's main tourist hub will offer prices in the region of €3,200–€4,000 per square meter. This region is expected to show steady growth of 8% per year. The main activity will shift toward renovated apartments in the central part of Budva, which are in steady demand among renters year-round.

Bar: will be the fastest growing city, with projected growth of up to 12% per year. However, the price per square meter will remain the most attractive: from €2,400 to €3,100. The combination of developed urban infrastructure and proximity to the port makes Bar a priority destination for those seeking long-term residence.

Herceg Novi: prices will stabilize at €2,800–€3,500 per square meter. This region attracts buyers seeking a relaxing holiday and family life, offering investment returns of 5-7% per annum.

Investor summary: 2026 is the time for "smart buying." The main profit will come not from speculative price increases at the beginning of the 2020s, but from owning quality properties in locations with limited supply.

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4. Top Regions for Profitable Real Estate Purchases in 2026

Choosing a location in Montenegro in 2026 requires a strategic approach: the market has transitioned from spontaneous growth to a phase of high-quality development. We have identified three key areas that demonstrate the best return on investment and comfort.

4.1. Bay of Kotor: Premium Segment and Steady Capitalization Growth

The Bay of Kotor (Boka Kotorska) has firmly cemented its status as the "Montenegrin Riviera" for elite vacations. Investments here are focused on capital preservation and high rental income in foreign currency.

• Why it's profitable: Limited land for development creates a natural supply shortage. Waterfront properties and historic stone palazzos in Kotor, Perast, and Prcanj are increasing in value by 5-7% annually.
• Buyer Profile: Investors targeting conservative strategies and the luxury segment.
• Forecast: By 2026, short-term rental yields will reach peak levels here, thanks to the development of yachting tourism and UNESCO brand recognition.

4.2. Bar Riviera: Optimal Balance of Price and Developed Infrastructure for Permanent Residence

While Budva remains a tourist hub, Bar will be the undisputed leader in 2026 for those planning to move to a permanent residence. It is the liveliest coastal city in winter.

• Infrastructure Advantages: Wide embankments, the presence of a major port, direct rail links to Belgrade, and an abundance of schools and kindergartens make Bar extremely comfortable.
• Price Factor: The price per square meter here is 20-30% lower than in Budva or Tivat, with comparable construction quality. This creates a window of opportunity for entering the market with a moderate budget.
• Investment Potential: High demand for long-term rentals from expats and remote workers.

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4.3. Lustica and Herceg Novi: Hidden Potential for Investors

Regions that have long remained in the shadows are now experiencing the most dynamic transformation.

Lustica Peninsula: Thanks to mega-projects (such as Luštica Bay), the region is transforming into a world-class eco-resort. Buying property in the early stages of new construction promises capitalization growth of 15-20% by the time the projects are completed.

Herceg Novi: The city of botanical gardens attracts European buyers with its authenticity and mild microclimate. Following the launch of new ferry lines and modernization of the road network, accessibility to the region has significantly improved, pushing prices up.

Verdict: These are "smart investment" zones where you can find undervalued properties with high growth potential over the next 3-5 years.

5. Legal Security and Taxes When Purchasing a Resale Property

The Montenegrin resale property market in 2026 requires buyers to pay increased attention to detail. Tighter controls over the origin of funds and updated tax legislation make the due diligence stage critical to a successful investment.

5.1. Updated Real Estate Transfer Tax Scale

Since 2024, Montenegro has had a progressive property transfer tax (Porez na promet nepokretnosti), which will remain in effect in 2026. Unlike the primary market, where buyers are exempt from this tax (if the property is subject to VAT/PDV), the burden of payment falls on the buyer in the secondary market.

Current property tax rates in Montenegro:

• Up to €150,000 – 3% of the purchase price.
• From €150,001 to €500,000 — a fixed €4,500 + 5% of the amount exceeding €150,000.
• Over €500,000 — a fixed €22,000 + 6% of the amount exceeding €500,000.

Important: The Tax Administration reserves the right to revise the property price in the contract if it deems it to be undervalued relative to the regional market.

Get a consultation with our real estate lawyer in Montenegro: +382 67 322 888 Viber/WhatsApp/Telegram.

5.2. How to check the legality of a property and avoid encumbrances in 2026

One of the main problems in the secondary market remains "illegal construction" (properties without an occupancy permit).

Pre-transaction safety checklist:

• Unauthorized Property Certificate (List nepokretnosti): Check the current Cadastre extract. Section "G" (Tereti i ograničenja) should not contain any entries regarding a ban on sale, litigation, or the absence of a building permit (Nema dozvolu).
• Legalization Process: If the property is in the legalization process, it is necessary to ensure that the seller has submitted all documents by the deadline and paid the relevant fees to the municipality (kommunalia).
• Tax Arrears: Check certificates of absence of outstanding annual property taxes and utility bills.

6. Montenegro Residence Permit Based on Real Estate Ownership in 2026

Montenegro remains one of the most attractive European countries for legalization in 2026. Resident status here is not just a right to long-term residence, but a strategic asset for those seeking stability in a dynamically changing world.

6.1. Current Conditions for Obtaining a Residence Permit through Real Estate Ownership

The Boravak Residence Permit Program (Boravak) based on real estate ownership remains accessible in 2026, remaining one of the easiest routes to immigrate to Europe.

Key requirements for the property and owner:

• Property type: Residence permits are granted to owners of residential properties (houses, apartments). Important: Owning a land plot without a building does not grant residency rights.
• Minimum threshold: Currently, Montenegrin law does not establish a strict minimum property value threshold for obtaining a residence permit. However, the property must be habitable and free of critical encumbrances in the Cadastre.
• Validity: The residence permit is issued for 1 year with the right to annual renewal (subject to the retention of ownership).

Required documents in 2026:

• A recent "Certificate of No-Residence" (no older than 6 months).
• Proof of financial solvency (a deposit in a Montenegrin bank).
• Local health insurance.
• A certificate of no criminal record from the country of citizenship (with a translation from a court interpreter).

6.2. Benefits of Montenegrin residency in 2026

Being a resident of Montenegro in 2026 is beneficial for several reasons:

• Path to EU integration: Montenegro is in the final stages of joining the European Union. Obtaining a residence permit now is an opportunity to establish yourself in the country before the rules become stricter (as in Croatia or Slovenia).
• Access to the banking system: Resident status significantly simplifies interactions with banks. This applies not only to personal accounts but also to the possibility of making international transfers in the face of global restrictions.
• Tax optimization: Residents can apply for tax residency in a country with one of the lowest income tax rates in Europe (from 9% to 15%).
• Social guarantees: A residence permit entitles you to free public healthcare (subject to employment or contributions to the health fund) and access for children to public schools and kindergartens.
• Freedom of movement: Montenegro is an ideal hub for traveling throughout the Balkans and Europe, and a residence card simplifies obtaining visas to Schengen countries, the US, and the UK through consulates in Podgorica.

Investor's Guide: Purchasing a resale property in 2026 not only offers capital preservation but also a secure legal anchor in Europe. While many countries are restricting Golden Visas, Montenegro remains an open door for those who value quality of life and security.

7. Technical Checklist for a Buyer of Existing Homes

When buying a pre-owned property in Montenegro in 2026, the visual delight of a sea view should give way to cold calculation. Older properties have their own characteristics, which can either become a source of negotiation or result in costly repairs.

7.1. Inspecting Utility Systems and Waterproofing

In a Mediterranean climate, the technical condition of a property determines the comfort of living in winter.

What to look for first:

• Waterproofing and mold: The main enemy of coastal properties. Carefully inspect corners, where ceilings meet walls, and areas around window frames. A damp smell is the first sign of poor roof or foundation waterproofing.
• Electrical wiring: In houses built in the 1980s and 1990s, the electrical system may not be rated for the current number of appliances and air conditioners. Check the condition of the electrical panel and the grounding.
• Water and sewerage: Check the connection type (city network or septic tank). Older properties often have steel pipes that need to be replaced with plastic. Check the water pressure and drainage rate at all points.
• Window systems: Old aluminum profiles without a thermal break guarantee heat loss in winter and condensation on the glass.

7.2. Energy efficiency and maintenance costs of older properties

In 2026, energy efficiency issues directly impact the property's marketability. Maintenance of low-energy-rated housing costs 30-40% more.

• Facade insulation: Applying a layer of foam or "demit" to external walls significantly reduces electricity bills (heating/cooling).
• Heating systems: Montenegro does not have central heating. A wood stove, heat pump, or modern inverter air conditioners are a huge plus for existing homes.
• Taxes and fees: Remember that property ownership taxes depend on the age and location of the property. Older properties often offer better tax benefits, but require budgeting for common areas (entrance hall, roof).

8. Conclusion: Investment Strategy for 2026

In summary, we can confidently say that Montenegro's secondary market will become a safe haven in 2026 for three reasons:

• No risk of unfinished construction: With volatile construction material prices, purchasing a completed property is the only way to guarantee your asset won't become a long-term project.
• Instant profitability: Resale properties can be rented out or used to obtain a residence permit the day after the transaction is registered with the Cadastre.
• Unique locations: The most desirable waterfront plots are already developed. By purchasing "older properties" on the waterfront, you acquire an exclusive resource that will no longer be produced.

Major renovations of such properties yield a 20-25% increase in value, significantly exceeding the returns on deposits or the purchase of properties under construction with an indefinite completion date.

Find properties on the secondary market in prime locations (Budva, Kotor, Tivat) on our website: gomonte.me

Book a viewing or ask our consultants questions: +382 67 322 888 Viber/WhatsApp/Telegram