Real Estate Market in Montenegro: Prices Continue to Rise in 2025

Market Overview: Stability Amid Global Uncertainty

Despite inflationary pressure across Europe and increased interest rates, Montenegro’s real estate market has continued to show resilience and steady growth in 2025. Recent government data reveals that the average price of newly built residential units nationwide stands at €2,158 per m², an increase from previous years.

Coastal Regions Lead the Price Growth

Properties along the Adriatic coast remain the most expensive and in-demand:

• Budva, Tivat, and Herceg Novi recorded averages of €2,328 per m²
• Podgorica follows with around €2,066 per m²
• Northern regions, such as Pljevlja and Berane, remain more affordable, averaging just over €1,000 per m²

This gap between coastal and inland pricing reflects long-term trends — with tourism, second-home purchases, and international buyers fueling demand in the south.

Construction Pipeline Keeps Growing

To meet demand, developers are launching new residential and mixed-use projects. According to Montenegro Business, over 15 new projects are under development or awaiting approval in 2025, particularly in:

• Bar
• Kotor
• Budva
• Podgorica (urban expansion zones)

What’s Driving Demand?

Local Demand: Urban Migration and Lifestyle Shifts

Montenegrin citizens are increasingly looking to upgrade their homes, especially in Podgorica and along the coast. Young families, remote workers, and retirees seek modern homes with better insulation, outdoor space, and energy efficiency.

Foreign Interest: Montenegro as a Second-Home Destination

In parallel, foreign buyers from Germany, Austria, Serbia, and the UAE continue to fuel interest — especially in the luxury segment. Many investors are purchasing off-plan apartments in new developments, banking on Montenegro’s rising profile as a lifestyle and investment destination.

‍