The value of Montenegro’s real estate market keeps rising. In Q1 2025, prices for new apartments increased by 23% compared to the same period last year, and have surged by 130% over the past five years. Foreign investment also grew, with foreigners purchasing properties worth €113.5 million in Q1 2025—a 21% increase from 2024. Since 2019, foreigners have invested around €2 billion in Montenegro’s real estate.
According to Monstat, the average price per square meter for new apartments surpassed €2,000 in early 2025, reaching €2,158. Podgorica saw a five-year price increase of 139%, with an average of €2,066 per square meter. Coastal regions remain the most expensive, with prices averaging €2,328 per square meter and rising 25% year-on-year. Luxury resorts such as Luštica Bay, Porto Montenegro, and Portonovi command prices from €9,000 up to €13,000+ per square meter.
Montenegro outpaces the European Union in price growth, with EU prices rising only 3.6% in 2024 compared to Montenegro’s 21%.
Foreign direct investment (FDI) into Montenegro reached €211.76 million in Q1 2025, over half of which went into real estate. The largest groups of foreign buyers come from Serbia, Turkey, the USA, Germany, Cyprus, Russia, UAE, and Switzerland. Tourism is a key driver of real estate demand, contributing significantly to Montenegro’s GDP growth, with over 2.6 million tourists in 2023. Additionally, the growing number of digital nomads has boosted demand and increased IT service exports.
Despite rising prices and demand, construction activity is slowing. Only 30 building permits were issued in Q1 2025, a sharp decline from previous years. This reduction reflects changing economic conditions and recent regulatory changes, including the reinstatement of building permits (replacing the prior construction notification system). Investors appear cautious, waiting to sell existing inventory before launching new projects.
A notable issue is the high number of vacant properties: over 70,000 apartments (about 25% of the total) are temporarily unoccupied. Foreigners own approximately 50,000 properties and 94,000 land parcels, mainly concentrated in coastal municipalities and northern regions like Pljevlja and Nikšić.
While prices have risen substantially and foreign interest remains, market experts suggest that this growth may not continue indefinitely. The current slowdown in construction could signal a market adjustment as investors adapt to demand and regulatory changes.
