Affordable Real Estate in Montenegro: 4 Ways to Buy Affordable Seaside Property in 2026

Buying your own home on the Adriatic remains a cherished dream for many, and in 2026, this market offers unique opportunities for those who know where to look. Buy affordable real estate in Montenegro in the following ways: with installments, off-plan, on the secondary market, and at reduced prices (flash sales).

In this article, we'll provide an overview of the real estate market by city, where to look for great affordable properties, how to buy an apartment in Montenegro with installments for foreigners, the new 2026 rules for Montenegrin residence permits based on property ownership, taxes, and a catalog of low-priced properties on the coast.

On our website, you'll find properties that are affordable even on a budget: affordable resale properties in Budva and other cities in Montenegro, apartments with installments, flash sales at low prices, and real estate from developers by the sea.

View the full catalog at: gomonte.me

Ask questions or schedule an apartment viewing: +382 67 322 888 (Viber, WhatsApp, Telegram)

1. Market Analysis: Where to Find the Most Affordable and Profitable Real Estate in Montenegro in 2026

The Montenegrin real estate market is showing interesting dynamics in 2026. Despite the overall growth of interest in the Adriatic, there are still locations in the country where the price per square meter remains affordable for private investors and those seeking a "summer cottage by the sea." You can buy affordable real estate in Montenegro in 2026 in cities such as Bar, the suburbs of Budva, Ulcinj, and Herceg Novi. These cities have well-developed infrastructure and numerous resale properties at low prices. The secret to a profitable purchase today lies in choosing the right region and understanding local pricing patterns. When searching for budget options, it's important to distinguish between overheated tourist centers (such as Budva) and promising developing areas.

1. The city of Bar and its surroundings (Sutomore, Šušanj, Dobra Voda) are traditionally considered the leaders in terms of the number of affordable options.

• Advantages: Developed urban infrastructure operating year-round, the presence of a major port and railway connections.
• Prices: It's easiest to find resale properties and small studio apartments here at prices 20-30% lower than in Budva. Construction quality remains at a decent level.

2. The Ulcinj Riviera is the southernmost region of the country, known for its kilometers-long sandy beaches (Velika Plaza).

• Advantages: Enormous rental potential during the summer season and the lowest prices for land and new properties.
• Prices: In 2026, Ulcinj remains the entry point for those on a budget. This area is just beginning to be developed by major developers, offering the opportunity to buy a property at an early stage.

3. Boka Kotorska Bay (Risan, Bijela, or Kostanjica)

• Advantages: Unique ecology, lack of strong winds, and stunning views.
• Prices: In the village of Bijela, for example, you can find affordable resale properties. This is an excellent compromise between the prestige of the location and the actual value of the property.

4. Kolasin and Žabljak - if proximity to salt water isn't a critical factor, consider mountain properties.

• Advantages: Ski resorts are actively developing. Property here is cheaper than coastal properties, but is in demand by tourists in two seasons: winter (skiing) and summer (eco-tourism).

What should you consider when analyzing prices?

In 2026, four main factors influence the price of a property in Montenegro:

• Distance from the coastline: Just 500-700 meters uphill from the sea can reduce the price of an apartment by €15,000-20,000.
• Development type: Older properties in residential areas of Herceg Novi or Bar often offer better value per square meter than new buildings, especially when utilities are already installed.
• Urgency of sale: The resale market is active in 2026, and monitoring last-minute offers from owners who need to close quickly remains the best way to save.
• Residence permit for real estate: If you want more than just a "summer cottage" for vacation or for renting out and generating passive income, but would like to relocate and obtain a residence permit, new rules will come into effect on January 1, 2026, setting the price threshold at no less than €150,000.

2. Affordable real estate from developers in Montenegro

Today, direct sales of apartments from developers in Montenegro are the most cost-effective way to purchase a home, allowing buyers to lock in the minimum price even before the main construction phase begins. Purchasing a new home in 2026 remains one of the most reliable ways to not only preserve but also grow your capital. Despite the general trend of rising prices, the off-plan housing segment offers flexible financial terms, making entry into the market affordable even on a limited budget.

View the catalog of offers from developers in Montenegro on our website: gomonte.me

2.1. Advantages of purchasing in the early stages of construction

Purchasing a property at the "foundation stage" in Montenegro offers a number of undeniable advantages:

• Minimum price: The difference in the price per square meter between the start of sales and the completion of the property can be from 15% to 30%. Interest-free installment plans: Most major developers in Budva and Tivat offer payment plans linked to construction stages. Typically, the down payment is 30%, with the remainder paid until completion.
• Best choice of floor plans: Apartments with the best views and the most marketable spaces (studios and one-bedroom apartments) are available at the initial sales stage.
• No real estate turnover tax: When purchasing directly from a legal entity (developer) that is a VAT payer, the buyer is exempt from paying 3% tax (and higher on a progressive scale), representing significant savings.

2.2. Overview of locations with the most affordable offers in the new-build segment

- Budva is the most active market in the country. Although the city center is developed, new projects are shifting to the Lazi, Podkosljun, and Mainski Put districts.

Budget options: Modern, low-rise apartment buildings are being built here. If the property is located 800-1000 meters from the sea, the price per square meter will be significantly lower than the average market price along the coast.

- The village of Becici has become a mecca for apartment buyers. Many high-quality condo hotels and residential complexes with swimming pools are being built here.

Where to look for bargains: In the upper part of Becici (above the main highway), projects aimed at investors are actively being launched. This is an excellent option for those planning to rent out their property to tourists – the beach here is one of the best in the country, and prices at the excavation stage are more affordable than in neighboring Budva.

- Tivat is associated with Porto Montenegro, but outside the marina, there are areas with very competitive prices, such as Mrčevac, Kavač, and Gradiosnica.

Prospects: The Kavač area (on the mountainside between Tivat and Kotor) is currently experiencing a construction boom. Buying here at the foundation stage offers the opportunity to enjoy panoramic views of the bay at a price two to three times lower than in central Tivat. Investor tip: When purchasing during the construction phase in 2026, it is critical to verify the Urban Development and Technical Conditions (UDT) and building permit. Working with reputable developers guarantees deadlines and a legally sound transaction.

Our agency, GoMonte, and its team of lawyers assist with property inspections and guarantee a clean transaction. For more information, please call +382 67 322 888 (Viber, WhatsApp, Telegram)

Look for great deals from developers in Montenegro in our catalog: gomonte.me

3. Apartments with installment plans in Montenegro

For many foreign investors, the opportunity to purchase an apartment with installment plans in Montenegro becomes a decisive factor when choosing a property. Given the lack of affordable mortgage lending for non-residents from local banks, developer financing programs are the main sales tool in the primary market.

3.1. Typical terms of interest-free installment plans from Montenegrin developers

Most construction companies in Budva, Tivat, and Bar offer buyers an internal interest-free installment plan. This flexible tool does not require proof of official income in Montenegro or complex bank guarantees.

Key features of the programs:

• No overpayments: Unlike a loan, the property price is fixed in the contract and does not increase due to interest.
• Term: Installments are typically issued until the building is commissioned (12 to 36 months).
• Availability: The program is available to both individuals and legal entities.

3.2. Payment Schedules: From Down Payment to Key Collection

The standard payment schedule for purchasing a property under construction in Montenegro is usually divided into several stages, linked to the stage of completion of the property:

• Reservation: A deposit of €2,000–€5,000 is paid to remove the apartment from the market.
• Down Payment: This constitutes 10–30% of the total purchase price and is paid upon signing the main sales contract at a notary office.
• Progress Payments: The remaining amount (70–90%) is distributed in equal installments (quarterly or monthly) or linked to the following construction stages:
• Completion of rough construction;
• Window installation and façade work;
• Interior finishing.
• Final Payment: Typically 5–10% is paid upon receipt of the keys and signing of the acceptance certificate.

3.3. Legal nuances of drafting a purchase and sale agreement with an encumbrance

Purchasing with an installment plan requires special attention to legal execution. All transactions in Montenegro are conducted strictly through a certified notary.

• Notarial agreement: The document details the payment schedule and penalties for late payments.
• Restriction on alienation (Intabulacija): Until the purchase price is fully paid, an encumbrance is placed on the property deed (List Nepokretnosti). This guarantees the developer that the buyer will not be able to resell the property until the debt is repaid.
• Transfer of ownership: The buyer becomes the full owner only after providing the notary with proof of full payment (Clausula Intabulandi), after which the encumbrance is removed.

This transparent scheme makes purchasing real estate with an installment plan a safe and predictable process for foreign citizens.

4. Hot Offers in Montenegro: The Hunt for Discounts of Up to 20%

The Adriatic real estate market attracts not only those seeking a mild climate but also pragmatic investors. Hot Offers, or hot sales, offer the opportunity to purchase seaside apartments at a significant discount, rarely reaching 15-20% of the average market price. However, purchasing a "hot offer" requires quick response and a thorough understanding of the local market.

4.1. Sources of Hot Offers: Why Owners Lower the Price

Price reductions below market value in Montenegro are rarely due to defects in the property itself. Most often, the discount is caused by the seller's personal circumstances:

• Personal circumstances: The need to urgently relocate, resolve family issues, or the need for a large sum of cash for a business in another country. Alternative transactions: The owner has already found another property and is willing to lower the price of their current apartment to avoid missing out on a counteroffer.
• Investment exit: Investors who entered the project at the foundation stage may be looking to quickly secure a profit during the final construction phase.
• Mortgage obligations: The desire to quickly close a loan with a foreign bank to avoid rising interest rates.

View last-minute offers for urgent property sales in Montenegro on our website: gomonte.me

4.2. Specifics of urgent sales transactions: What to look for when checking documents

Purchasing a property at a significant discount always carries increased responsibility. It is important to understand that "urgency" should not negate a thorough due diligence process.

Critical inspection points:

• List nepokretnosti (Non-encumbrance list): It is necessary to check for entries in the "Tereti i ograničenja" (Encumbrances and restrictions) column. A rush sale should not conceal any legal proceedings or injunctions.
• Spousal Consent: If the property was purchased during marriage, the lack of notarized consent from the other spouse may block the transaction in the future.
• Tax and Utility Debts: In Montenegro, electricity and property tax debts "follow" the property, so it is important to request certificates of no outstanding debts before signing the contract.
• Legalization: If the property has a notice indicating a partial lack of a building permit (Nema dozvolu), the discount should cover future legalization costs.

4.3. Seasonality of the "Urgent" Market - When the Best Lots Appear

• November - December: Traditionally, the period when "hot" offers appear. Sellers want to close transactions before the end of the financial year to address tax or personal issues.
• February - March: A lull before the start of the tourist season. Owners who didn't manage to sell their homes in the fall often make maximum concessions to avoid entering the summer with an unsold property.
• Peak Season (July – August): During this time, the number of urgent sales is minimal. The market is focused on short-term rentals, and owners prefer to capitalize on tourists by postponing sales until the fall.

5. Montenegro's Resale Housing: Completed Properties with Income Potential

While new buildings attract attention with their modern facades, Montenegro's secondary real estate market remains a gold mine for experienced investors. Completed properties minimize construction risks and allow you to begin receiving rental income immediately after closing. However, to achieve high returns, it's important to choose the right segment and location.

Find properties on the secondary market at reduced prices (flash sales) on our website: gomonte.me

5.1. Benefits of purchasing completed apartments in residential complexes on the secondary market

Properties built between 2014 and 2019 currently offer the most balanced price-quality ratio.

• Building settlement and the test of time: Over 5-10 years of use, all possible construction nuances become apparent. If the house is free of mold and cracks, it means the waterproofing and ventilation have been properly installed. Established neighborhood: Unlike new buildings, you know in advance who your neighbors are and whether large-scale construction will begin right below your windows, blocking the view.
• Ready-made documentation: Such buildings have typically already undergone all legalization processes, simplifying the process of obtaining a residence permit based on property ownership.
• Lower price per square meter: The price per square meter in such complexes is often 15-20% lower than in premium properties under construction, with comparable comfort features.

Affordable real estate in Montenegro on the secondary market in our catalog: gomonte.me

5.2. Opportunities for "flipping": purchasing for renovation and subsequent resale

The "flipping" strategy (fix-and-flip) is gaining popularity in old cities and coastal towns. The idea is simple: purchase a property in a "tired" condition, carry out quick, high-quality renovations, and resell it at market price.

Why is this profitable in Montenegro?

• Undervalued lots: In older buildings (especially in Yugoslav-era buildings), you can find apartments with excellent layouts and locations that are affordable due to the lack of cosmetic repairs.
• Added value: Modern design, plumbing upgrades, and high-quality air conditioning installation can increase the property's value by 30-40%, with repair costs ranging from 15-20% of the purchase price.
• Demand for turnkey properties: Most buyers from Europe and the CIS are looking for properties they can move into tomorrow. They are willing to pay a premium for a ready-made style and the freedom from dealing with local construction crews.

Investing in existing homes is a strategy for those who value tangible assets and predictable returns. Choosing the right 10-year-old property with a good view guarantees a stable cash flow in euros for many years.

6. Property Taxes in Montenegro in 2026 and Other Expenses

Planning a budget for a property purchase in Montenegro requires considering not only the cost of the property itself but also any associated fees. While the country's fiscal policy remains transparent in 2026, investors should consider progressive tax rates and updated professional fees.

6.1. Taxes on the Purchase and Ownership of Property

In Montenegro, the tax burden on a transaction depends on whether you are purchasing directly from a VAT-paying developer or on the secondary market.

Primary Market (New Buildings): When purchasing from a legal entity that is a VAT payer (PDV), the buyer is exempt from paying real estate turnover tax (3%). VAT of 21% is already included in the price of the property.

Secondary Market: When transferring ownership of completed properties, a progressive tax is levied.

• Up to €150,000 — 3% rate.
• From €150,001 to €500,000 — a fixed amount of €4,500 + 5% on the amount above €150,000.
• Over €500,000 — a fixed amount of €22,000 + 6% on the excess amount.

The local tax office determines the exact market value of the property for tax purposes, based on regional averages and not solely on the contract amount.

6.2. Notary and legal interpreter services when purchasing a property

• Notary fees: Calculated according to an officially approved scale. On average, drawing up a purchase and sale agreement costs between €300 and €1,000, depending on the transaction amount. The notary is also responsible for entering the data into the Land Registry.
• Court interpreter: If one of the parties does not speak the official language of the country, the presence of a court interpreter is mandatory at the transaction. The average cost of their services in 2026 is €30–50 per hour for oral translation and approximately €20–25 per page for written translation of documents.
• Legal support: Although a notary verifies the integrity of the documents, investors often engage independent lawyers. The cost of comprehensive support is approximately 1% of the transaction amount, or a fixed fee of €500–1,500.

6.3. Annual Maintenance: Utilities and Property Tax

• Annual Property Tax (Porez na nepokretnost): The rate varies between 0.25% and 1% of the cadastral value. It depends on the municipality (in Tivat and Budva, rates are higher than in the north), the size of the property, its condition, and proximity to the sea. Bills are usually received mid-year.
• Tourist Tax: Owners of "second homes" (holiday homes) who do not have permanent residence pay an annual tourist tax, which is calculated based on the property's size and the length of the season.

For example, the annual tax for 2025 on a one-bedroom apartment in central Budva (47 square meters) is €480, the tourist tax is €70, and the tax on an 83 square meter studio apartment in Herceg Novi is €860, with the tourist tax being €112.

Utilities:

• Water and sewerage: Metered (approximately €1–€1.50 per cubic meter).
• Electricity: Montenegro has a two-tariff system (day/night). Average monthly bill for a family is €50–€100.
• Garbage collection: Approximately €10–€15 per month.
• Maintenance: In complexes with a swimming pool and security, the fee ranges from €0.50 to €2 per square meter per month. In standard city buildings, residents contribute €5–€10 per month for hallway cleaning.

7. Conclusion

Investing in Montenegro in 2026 isn't just about buying square meters; it's about acquiring a piece of the European lifestyle. Ready to take the first step?

Consult with our real estate lawyer to finalize the success of your transaction: +382 67 322 888 (Viber, WhatsApp, Telegram)

Go to the catalog and select properties to view: gomonte.me

Also read our other articles:

Luxury real estate in Montenegro: gomonte.me/blog/post/82

The best country to move to Europe in 2026: gomonte.me/blog/post/81