Who buys real estate in Montenegro? Realistic analysis of customers, motivations and trends

In recent years, the Montenegrin real estate market has attracted increasing attention from domestic and foreign investors. With a spectacular coastline, growing tourist demand and a favorable legal framework, Montenegro has become one of the most desirable destinations for real estate investment in the Adriatic region. In this article, we analyze who actually buys real estate in Montenegro — which demographic groups dominate, what are their motivations, and what are the current trends in the market. This guide will help you better understand the profile of investors, their goals and how the market is changing in 2025/2026. year.

Share of foreign and domestic buyers on the real estate market in Montenegro

According to data from the Central Bank of Montenegro and market analyses, foreign buyers are responsible for a large part of the volume of transactions on the real estate market in the country. During the last few years, foreign nationals have bought real estate in Montenegro worth about 1.5 billion euros, which shows a strong interest from abroad.  Data show that foreigners bought as much as two-thirds of all offers on the market in the period 2023-2024. year, while domestic buyers — citizens of Montenegro — are still active, but occupy a smaller share in total investments.  This is a direct consequence of the globalization of the market, the mobility of capital and the attractiveness of Montenegro as a destination for vacation, life and investments. The analysis shows that the interest of foreigners in buying real estate has increased by four times in the previous five years. Foreigners who bought the most real estate in Montenegro in the first three months of this year were once again citizens and companies from Serbia worth 19.2 million euros. In the second place in the first trimester of this year were investments from Turkey for 16 million euros, followed by the USA with 13.8 million euros, Germany with 11.5 million euros, Cyprus with 5.3 million euros, Russia with 4.7 million euros, the UAE with 4.4 million, Switzerland with 3.8 million euros, Great Britain with 3.3 million euros, Poland, the Czech Republic and Ukraine with 2.3 million euros and 1.9 million euros from Bosnia and Herzegovina.

Who are the main foreign buyers of real estate in Montenegro?

Citizens of Serbia

The largest group of foreign buyers on the Montenegrin market are citizens of Serbia. According to data from the period 2021-2024, buyers from Serbia invested around 230 million euros in Montenegrin real estate — the most compared to all other countries. The reasons for their high demand are multiple:

• Geographic proximity and cultural similarities,
• Easy accessibility and simple administrative procedure,
• Occasional use of real estate for personal use or rental,
• Investments in land and apartments on the coast, especially in Budva, Kotor and Tivat.

Serial investors often look for affordable properties that can be used as a second home on the sea or for renting out during the season, while some buyers invest in land for future construction and development.

Citizens of Russia

Another large group of real estate buyers in Montenegro are Russian investors. Although their interest has declined somewhat recently, the Russians during 2021–2023. invested more than 200 million euros in the Montenegrin market.  Russians traditionally favor real estate on the Montenegrin coast — especially luxury apartments and villas in Budva, Herceg Novi and Boka Kotorska — and see Montenegro as a safe location to preserve capital and live part of the year.

European customers (Germany, rest of EU)

Among the buyers are also citizens of the European Union countries, where Germany is particularly represented. During the period 2021–2024. Germans have invested around 180 million euros in Montenegrin real estate, although their interest has been decreasing a little recently.  They most often buy:

• Secondary apartments on the coast,
• Cottages and holiday apartments,
• Real estate with potential for long-term rental,
• Medium to high standard facilities.

EU buyers are an important group because they often combine investment motives with personal plans — transition to life in a Mediterranean climate, use of Europe-close location and potential future membership of Montenegro in the EU. 

Investors from Turkey and the USA

In the last few years, there has been an increase in the interest of investors from Turkey and the United States of America. According to the data from 2024, Turkey records an increased investment volume, while American buyers occupy a significant place among the top five investors.  These groups often buy properties in the luxury segment and properties with high potential for short-term rental, especially in popular coastal destinations.

Other nationalities

In addition to the main groups, there are also buyers from countries such as:

• Switzerland — significant growth in interest,
• Ukraine and Great Britain,
• Bosnia and Herzegovina and other Balkan countries,
• United Arab Emirates.

These groups are often looking for properties for vacations, retirement living, investments or living outside their home country.

Motivations of real estate buyers: Why buy real estate in Montenegro?

Return on investment (ROI)

One of the main motives of foreign and domestic buyers is return on investment through rent. Montenegro offers high seasonal occupancy rates, especially along the coast — Budva, Kotor, Tivat — making real estate investment attractive to investors seeking long-term income.

Second house by the sea

Many buyers, especially from the EU and the Balkans, use the property purchase as a second home or summer residence. Access to the sea, the Mediterranean lifestyle and the proximity of their home countries make Montenegro an ideal location.

Safe investment and preservation of capital

Real estate is often considered a safe haven for capital — especially in geopolitically uncertain times. Foreign investors see Montenegro as a stable and attractive destination where their property can increase in value over time.

Potential EU membership 

Montenegro is a candidate for membership in the European Union, which increases investor confidence. It is expected that full membership could further increase the value of real estate and open new markets. 

Personal and lifestyle reasons

For some buyers — especially those from northern Europe — the motive is not only an investment, but also a lifestyle:

• Mediterranean climate,
• beautiful nature,
• security and a calmer pace of life.

 

Trends shaping the customer market in 2025/2026

Growth in demand and diversification of real estate investors

The market is increasingly diversifying, as new investors from Turkey, the US and beyond come onto the scene — not just from Europe and the region. 

Changes in the share of traditional groups

The interest of Russians and Germans is decreasing, while the interest of investors from Turkey and the USA is increasing in the structure of buyers. 

Focus on luxury and premium real estate

More and more buyers are looking for premium real estate — luxury apartments, villas with sea view, exclusive projects in Tivat and Boka Kotorska.

Conclusion — Who buys real estate in Montenegro and why?

The Montenegrin real estate market attracts a wide range of buyers — from the neighboring Balkan states, through Western Europe, to investors from Turkey and the USA. The main motivations for buying include investment return through rental, capital preservation, lifestyle by the sea and expectations of future growth in real estate values. So, who is buying real estate in Montenegro today, and why? The dominant customer groups are currently:

• Citizens of Serbia — the biggest foreign buyers in the last few years.
• Russians were previously strong investors, now with somewhat declining interest.
• EU citizens, especially from Germany.
• Turkish and American investors with growing demand.

With this structure of buyers and motivations, the real estate market in Montenegro remains dynamic, attractive and promising, especially for those who look at real estate as a long-term investment. If you're planning to buy real estate in Montenegro — whether for investment or living — understanding these trends in the real estate market in this hot Mediterranean destination will help you make the best decision in 2026. If you want to explore the real estate offer in Montenegro with local real estate experts, to meet the expert team that knows every location from Kolašin to the golf resort, Luštica Bay and to find the ideal property with professional 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.