Although demand for apartments in Montenegro’s real estate market remains strong, real estate agencies report a slight decline in demand over the past three months compared to the end of last year and the beginning of this one.
Agency representatives told Pobjeda that by the end of this year and into next year, they expect housing prices to stabilize after a long period of growth. Rental prices, meanwhile, are slightly lower than last year and are expected to continue decreasing due to reduced demand and a growing focus on the domestic market rather than foreign renters.
Stefan Mišković, President of the Board of the Association of Real Estate Agencies of Montenegro and owner of Multitask Nekretnine, stated that monthly rents in Podgorica currently range from 400 to 650 euros for one-bedroom apartments, 700 to 1,100 euros for two-bedroom units, and 900 to 1,300 euros for three-bedroom apartments, depending on location and amenities. He said that prices are slightly lower than last year, and further adjustments are expected given weaker demand and the fact that tenants are now increasingly domestic rather than foreign, most of whom are currently Turkish citizens.
Mišković noted that despite strong demand, a mild slowdown was evident in the third quarter of this year. He explained that this coincides with a very low number of new building permits and a shortage of new housing supply, which forces buyers to search longer but does not diminish their interest. According to him, supply remains scarce — only ten building permits were issued in the second quarter of 2025, which is 82 percent fewer than in the same period last year. He added that this directly limits supply and makes it harder for buyers to find suitable properties. Interest in buying remains strong but slightly weaker than earlier this year, with the main obstacle being the lack of new apartments.
The average price per square meter of new apartments in Montenegro during the second quarter of 2025 was 2,201 euros. In Podgorica, the average was 2,108 euros, on the coast 2,333 euros, in the central region 1,068 euros, and in the north 1,547 euros per square meter. In Podgorica, new apartment prices in standard buildings range from 1,800 to 2,500 euros per square meter, while premium projects exceed that range. On the coast, in Budva, Kotor, and Tivat, prices range between 2,000 and 3,500 euros per square meter, with luxury marina developments reaching much higher levels. In luxury complexes such as Porto Montenegro, Portonovi, and Luštica Bay, prices generally range from 7,000 to 10,000 euros per square meter, with some new phases reaching up to 20,000 euros per square meter.
Compared to the last quarter of 2024, average prices in new developments rose 13.7 percent, from 1,936 to 2,201 euros per square meter. In Podgorica, prices increased by about 9 percent, while coastal areas saw a rise of around 12 percent. Mišković said that prices have grown sharply on an annual level, but compared to the first quarter of this year, the increase is modest, only about two percent. He expects prices to stabilize or grow slightly by the end of 2025, between minus three and plus one percent, with supply remaining limited. He added that demand will remain strong but not as extreme as during the peaks of 2024 and early 2025. Foreign buyers are still active, while domestic demand remains stable.
Ivan Dašić, Executive Director of Montenegro Prospect, described a general slowdown on the Montenegrin coast based on data from the first three quarters of 2025, including fewer inquiries, clients, sales, and lower overall revenues. He said that the overall decline in real estate market activity this year is around 25 percent, caused by global economic and geopolitical factors such as recession, investment uncertainty, record gold and silver prices, expensive loans, and high housing credit rates. Although the Euribor has been falling since May 2024, it remains about 2.5 times higher than in 2022 when it was negative.
According to Dašić, apartment prices on the coast have risen slightly, by about 1.5 to 2.5 percent compared to the last quarter of 2024. He noted that in young markets, the effects of supply and demand forces appear slowly and inflexibly in price levels. Therefore, it is not unusual to see a paradox where reduced construction activity and fewer building permits coexist with a stable or slightly rising price trend. He expects price growth to halt and stagnation to occur in the coming year.
Dašić pointed out that demand will decline due to the new Law on Legalization and its interpretation by the Notary Chamber and the Cadastre, which, in his view, temporarily prevents transactions involving a large number of properties across Montenegro. Until this issue is revised, demand will have to focus on the limited number of fully legal properties, which may cause prices for such properties to rise.
He said that in Sutomore, prices for older apartments range from 1,500 to 1,700 euros per square meter, while in central Bar, new apartments sell for 2,500 to 2,700 euros, and in the Bar neighborhood of Šušanj from 2,200 to 2,500 euros. In Ulcinj, prices range between 1,800 and 2,200 euros per square meter. In Budva, older apartments cost between 2,300 and 2,600 euros, and new developments between 2,800 and 3,700 euros, while luxury apartments reach up to 4,500 euros per square meter. In Bečići, prices average around 3,000 euros per square meter.
According to Montenegro Prospect data, in Kotor, apartments sell for around 3,500 euros per square meter, in Tivat for just over 3,800 euros, and in Herceg Novi for about 3,200 euros. In the Bay of Kotor area, prices for new apartments range from 3,300 to 4,500 euros per square meter.
