Who buys property in Montenegro? Real insights from investors
Demographics of property buyers in Montenegro, motivations, and market trends
The real estate market in Montenegro has undergone a significant transformation in recent years. Once a predominantly local market, it is now internationally oriented, with an increasing share of foreign investors coming from the European Union, the Balkan region, and even more distant parts of the world. Understanding who buys property in Montenegro, why they invest, and how these trends are evolving is crucial for anyone considering a purchase—whether for living, vacationing, or investment purposes.
Overview: Growth in the Number of Foreign Buyers
Foreign nationals have been playing a significant role in the real estate market in Montenegro for years. Between 2019 and 2025, the value of property purchases by foreigners is measured in billions of euros, while interest in certain years has increased up to four times compared to the previous period.
The coastal municipalities—Budva, Kotor, Tivat, and Herceg Novi—stand out in particular, where foreign buyers account for 40–50% of all transactions in certain segments, especially when it comes to luxury properties and newly constructed buildings.
Who are the property buyers in Montenegro?
Property buyers in Montenegro today come from diverse geographic and economic backgrounds. While domestic buyers still make up an important part of the market, especially in Podgorica and the inland regions, foreign investors dominate the coastal and premium areas.
Citizens of Serbia
Citizens of Serbia have traditionally been the most numerous foreign property buyers in Montenegro. In recent years, they have invested hundreds of millions of euros, especially in:
– apartments on the coast
– weekend homes and family houses
- construction plots
Reasons for purchasing:
– proximity of the two countries and good mutual connectivity, a similar language and legal framework, as well as emotional and family ties with Montenegro.
Serbian property buyers in Montenegro often combine personal use with seasonal renting.
Russian buyers (changed dynamics)
Russian citizens have for years been among the most significant investors, particularly in the luxury segment—villas, larger apartments, and properties in exclusive locations in Budva, Kotor, and Herceg Novi.
Over the past few years, this interest has declined somewhat, but Russian buyers still maintain a visible presence in the real estate market, including in premium projects.
Buyers from the European Union (especially Germany)
EU citizens, particularly Germans, represent a stable and long-term investor group in the Montenegrin real estate market. Their purchases are often motivated by a combination of:
– owning a second home in the Mediterranean
- long-term rental
– relocating after retirement
– a better quality of life
EU buyers most often choose high-quality new developments, energy-efficient properties, and quieter locations.
🇹🇷 Turkish and 🇺🇸 American investors
In recent years, there has been a noticeable increase in interest from investors from Turkey and the United States. These buyers are primarily focused on:
- luxury apartments
- projects with hotel services
- properties with high short-term rental potential
American buyers often come through investment funds or as individuals seeking a secure long-term investment.
🇨🇭 Switzerland, 🇬🇧 Great Britain and region
In addition to the buyers from mentioned countries, a significant number of buyers come from:
- Switzerland
- Great Britain
- Poland
- Bosnia and Herzegovina
- Ukraine
- United Arabic Emirates
These buyers most often look for vacation properties, but also for a way to safeguard their capital in a stable and secure environment.
Why do these buyers purchase real estate in Montenegro?
Investment and ROI
Montenegro is seen as a market with a good price-to-quality ratio. In tourist areas, especially during the high season, rental yields can be very competitive, while long-term growth in property values is also expected.
For many investors, real estate represents a safe haven for capital in times of global uncertainty.
Second home and lifestyle
A large number of buyers are looking for a second home by the sea. The climate, nature, safety, and relaxed lifestyle make Montenegro particularly attractive for families and retirees.
Long-term perspective and EU integrations
The process of joining the European Union further strengthens investor confidence. Many buyers expect that future membership will positively impact market stability and property values.
Main Trends in the Real Estate Market in Montenegro in 2026
Greater diversity of buyers
The market is no longer dependent on just a few countries. The investor base is expanding, which increases the market's resilience.
Growing demand for luxury properties
Luxury projects in Tivat, Kotor, and on Luštica are experiencing strong demand, particularly among high-net-worth buyers.
Changes among traditional customers
Interest among some traditional groups is weakening, but this is being offset by the arrival of new markets and investor profiles.
See also: Seasonal trends in the real estate market — Market activity during winter and summer
Most sought-after locations in the real estate market in Montenegro
Most sought-after locations according to forecasts in the real estate market:
Budva remains one of the most popular locations, attractive as a tourist center with highly liquid real estate.
Boka Kotorska, , with its fascinating bay and the medieval town and port of Kotor, where property buyers find prestige, history, and luxury.
Tivat – Porto Montenegro and international jet-set.
Podgorica, a city with stable demand and new luxury developments.
Herceg Novi offers a quieter and healthier environment, so properties here are often purchased for long-term living as well as for rental, as it is a very popular tourist destination with some of the most renowned film, theater, and literary events in this part of Europe.
Conclusion: Who will be buying real estate in Montenegro in the future?
In the coming years, the following is expected:
- further growth of foreign investments
- strengthening of the luxury segment of the real estate market
- stable demand for quality residential properties
- greater internationalization of the market
Buyers who understand who is investing, why, and where will have a clear advantage in decision-making.
Who buys real estate in Montenegro? Investor Insights – FAQ
Who are the main buyers of real estate in Montenegro?
Foreign buyers from Serbia, the EU, Turkey, the USA, and the region, along with a significant share of domestic buyers.
Why do foreigners invest in Montenegro?
Foreigners invest in real estate in Montenegro due to its investment potential, quality of life, safety, and future EU prospects.
Is the demand for luxury real estate increasing?
Yes, especially the demand for properties in coastal and premium destinations has been rising significantly for several years, and further and faster growth is expected.
Which locations in Montenegro’s real estate market are the most sought-after?
The most sought-after locations in Montenegro’s real estate market are Budva, Kotor, Tivat, Podgorica and Herceg Novi.
If you want to explore the luxury real estate offerings in Montenegro, meet a professional team that knows every location well—from Budva and Porto Montenegro to Podgorica—and find your ideal property with expert support, visit our office in Mediteranska street in Budva or contact us. Our team will provide you with full support in the purchase and investment process, with clear advice, market insights and a personalized selection of the best options available on the market.
