Foreign Investment in Montenegro: Hits New Highs

Montenegro Draws €114M in FDI in Q1 2025

Montenegro continues to attract growing international attention. In Q1 2025, the country recorded €113.9 million in foreign direct investment (FDI), a 21% increase year-over-year. The real estate sector accounted for the majority of this growth, highlighting investors' strong confidence in the country’s housing and commercial property potential.

Top Contributors

The leading sources of FDI include:

• Germany and Austria – major investors in luxury and eco-friendly properties
• Serbia and Turkey – active in residential and mixed-use developments
• UAE and Israel – focused on coastal resort-style real estate and commercial ventures

Strategic Advantages for Real Estate Investors

Liberal Property Laws and Residency Incentives

Montenegro remains one of the few European countries where foreigners can freely buy property with no restrictions. Additionally, real estate investment is a pathway toward residency and long-term stay, making the country especially appealing to retirees and digital nomads.

Eurozone Proximity and Euro Currency

Although not yet part of the EU, Montenegro uses the euro, and is on track for full EU accession in the coming years. This minimizes currency risk and simplifies transactions for European investors.

What Foreign Investors Are Buying

Focus on Coastal Apartments and Villas

Foreigners continue to target:

• Apartments in new coastal developments (Budva, Tivat, Kotor)
• Waterfront villas with rental potential
• Renovation-ready old town properties

There’s also growing interest in eco-villages and off-grid homes, especially from sustainability-conscious buyers from Scandinavia and Western Europe.