The best cities for investing in real estate in Montenegro (Budva, Kotor, Tivat, Podgorica)

Comparative analysis of ROI when investing in real estate in Montenegro, lifestyle in different cities and areas in this small Mediterranean country, demand for rental real estate and growth potential in key locations

During the last decade, Montenegro has become one of the most dynamic and promising real estate markets in the region. With the growing popularity of the tourist offer, stable legislation, attractive prices and great popularity in the world markets, more and more investors — both domestic and foreign — are looking for the best locations to invest right here. Budva, Kotor, Tivat and Podgorica stand out among the most sought-after destinations in Montenegro, four cities that offer completely different lifestyles, investment potential and ROI.

Below is a detailed comparative analysis that will help investors choose a location according to their goals — whether it's a high ROI, a stable long-term rental, a luxury segment or a fast-growing urban market.

Budva — the city with the greatest potential for short-term rental and turbo-demand during the season

Budva is the most famous tourist center of Montenegro and one of the most profitable places for short-term rental. With more than six months of active tourist season and constant growth in the number of visitors, Budva offers exceptional conditions for investors planning Airbnb, Booking and seasonal rental.

ROI (return on investment)

• The short-term ROI in Budva is among the highest on the Montenegrin coast.
• Apartments in new complexes in the center, Slovenska plaža, Rafailovići and Bečići can bring extremely high income during the summer.
• Luxury properties with sea views or private facilities fetch premium prices.

Lifestyle and real estate for long-term rental and living in Budva

Budva offers a lively, dynamic and urban lifestyle with plenty of restaurants, clubs, beaches and entertainment. It is ideal for those who want a pulsating atmosphere and an urbanized coast.

Demand for real estate rental in Budva

• Extremely high in the period May–September.
• Real estate is almost completely rented out during the season.
• In winter, demand drops, but the long seasonal period compensates for this.

The potential for growth in the value of real estate on the Budva Riviera

The following contribute to the price increase:

• New construction with modern standards
• Expansion of pedestrian zones
• The development of Bečić and Rafailović
• New hotel complexes on the Riviera

Ideal for: Investors focused on maximum ROI through short-term rentals and high return on investment through seasonal rentals.

Kotor — exclusivity, stability and a fantastic natural environment

Kotor, with its UNESCO-protected old town, in one of the most beautiful bays in the world, attracts a specific type of investor — those looking for stable and long-term value in an incredible natural environment.

ROI

ROI is steady and solid, especially in places like:

• Goodies
• Panchana
• Mua
• Orahovac
• Angry

Although the season is shorter than in Budva, rental prices are high due to the prestige of the location. Also, the city administration is successfully working to extend the season by offering events such as world star concerts in September and October, which again fill up the city and surrounding areas.

Lifestyle in Kotor and the Bay of Kotor

Kotor offers a quieter lifestyle compared to Budva. It is suitable for families, digital nomads and investors who prefer an authentic Mediterranean environment.

Demand for rental real estate in Boka

• Tourists who choose Boca are most often looking for peace, nature and cultural heritage.
• High demand during the summer, especially for properties near the water.
• During the year there is an increasing interest of expats who live in Montenegro for a long time.

Potential for real estate price growth in Kotor

Kotor remains a premium destination whose value is increasing thanks to:

• Lack of space for new construction
• Strict protection of unique cultural heritage
• The growing interest of foreign buyers (especially investors from Western Europe who prefer this particular destination in Montenegro)

Ideal for: investors who want a secure investment, prestigious location and stable long-term value.

Tivat — luxury marina, high ROI and year-round demand

Tivat is the fastest growing luxury destination in Montenegro. The development of Porto Montenegro has completely transformed the city, which today attracts a high-profile international clientele. This is best illustrated by the fact that some of the largest and most expensive yachts in the world are moored in the Porto Montenegro marina.

ROI on the real estate market in Tivat

Tivat in 2026 still maintains the most stable ROI in the premium segment. Real estate in and around Porto Montenegro, Donja Lastva, Seljanovo and Krašić achieve the highest rental prices in Montenegro.

Lifestyle in Tivat

Tivat offers a perfect combination:

• luxury marinas
• gastro scene
• peace and security
• modern residential complexes
• exclusive beaches and hotels

Thanks to its international clientele, the city has a cultured, elegant and cosmopolitan atmosphere.

Demand for real estate rental in Tivat

Tivat is the only city on the Montenegrin coast with consistently high demand throughout the year, especially in the premium segment.

The potential for growth in the value of real estate in Tivat and its surroundings

Tivat has a huge development potential thanks to:

• expansion of Porto Montenegro
• construction of luxury residential areas
• near the airport
• international customers who continuously increase their demand

Ideal for: investors who want a luxury segment, high ROI and stable year-round occupancy.

Podgorica — the best option for long-term rental and stable urban growth

Podgorica is the center of business, education and state life, which makes it a key destination for investors aiming for long-term real estate rental, or permanent occupancy without seasonal variations. It was ranked third in the list of the seven best European cities to invest in real estate in 2025, according to Global Property Guide research (see article on Euronews).

ROI

ROI in Podgorica is stable and reliable. The highest returns are brought by:

• City Quarter
• Central Point
• Old Airport
• Zabjelo
• Donja Gorica

Apartments rent quickly, especially one- and two-bedroom apartments.

Lifestyle in the capital of Montenegro

The capital city offers everything: business zones, schools, universities, shopping centers, cultural facilities and proximity to the airport. It is ideal for families, students and professionals.

The demand for rental real estate in Podgorica is stable

Podgorica has the most stable demand in the country, with minimal empty periods. It is in high demand among:

• students
• workers in institutions
• digital nomads
• families and couples

The potential for real estate growth in Podgorica

Podgorica is growing rapidly thanks to:

• new housing complexes
• infrastructure projects
• increased employment
• expansion of business zones

Ideal for: Investors who want security, stable occupancy and long-term rentals.

Direct comparison of cities

Conclusion — In which city do you have the best investment opportunity?

All four locations offer excellent opportunities, but the choice depends on the investment objective:

If you want the highest ROI — choose Budva or Tivat.
If you want stability and prestige — Kotor is the best option.
If you are looking for a location with potential for long-term rent and minimal risk — Podgorica is ideal.

Montenegro is entering a new phase of development, with increasing demand for real estate, new infrastructure and a growing number of foreign investors. No matter which location you choose, 2026 is an extraordinary time to invest.