Who is Buying Real Estate in Montenegro?

Over the past four years, foreign investors have purchased €1.5 billion worth of real estate in Montenegro. Their interest remains high but is gradually slowing down, as reported by Borba based on data from the Central Bank regarding investments and the balance of payments. Serbians lead the market, while Russians and Germans have reduced their investments in the country.

Foreign Investment Trends (2021-2024)

In the first year after the COVID-19 pandemic (2021), foreign real estate transactions in Montenegro totaled €278 million. In 2022, the market saw a significant 60% increase to €448 million. In 2023, the total grew to €463 million (+3.3%), but due to rising prices, foreigners purchased fewer square meters for the same amount of money. Between January and November 2024, foreign buyers spent €398 million, which is €40 million less than in the same period of 2023.

Over the last four years, foreigners have also sold properties worth €421 million and repatriated their funds. Sales reached €72 million in 2021, €108 million in 2022, €134 million in 2023, and €107 million in the first 11 months of 2024.

From January to November 2024, Montenegrin banks issued €156 million in mortgage loans to individuals and businesses, including local residents, companies, and foreigners with permanent residence. These groups purchased about two-thirds of all properties listed for sale in 2024.

Top Foreign Buyers of Montenegrin Real Estate (2021-2024)

1st Place – Serbia (€230 million)
Serbian citizens and companies are the largest foreign buyers of Montenegrin real estate. Their total purchases in the past four years reached €230 million:

2021: €35.7 million
2022: €53 million
2023: €78.3 million
2024 (Jan-Nov): €62.5 million
2nd Place – Russia (€210 million)
Russians have been second-largest investors, but their interest has significantly declined:

2021: €59 million
2022: €61.2 million
2023: €56 million
2024 (Jan-Nov): €33.5 million
3rd Place – Germany (€180 million)
German buyers also showed declining interest in the market:

2021: €26.6 million
2022: €70 million
2023: €51.2 million
2024 (Jan-Nov): €31.8 million
4th Place – Turkey (€152 million)
Turkish investors have slightly increased their spending on Montenegrin real estate:

2021: €14.7 million
2022: €29.7 million
2023: €51 million
2024 (Jan-Nov): €56.2 million
5th Place – United States (€118 million)
American citizens and companies have spent €118 million over the last four years:

2021: €21.4 million
2022: €37.3 million
2023: €34.3 million
2024 (Jan-Nov): €34.5 million
Other Top Investors (2021-2024)
Switzerland – €75 million
Ukraine – €53 million
United Kingdom – €46 million
Bosnia & Herzegovina – €44 million
United Arab Emirates (UAE) – €37 million

Real Estate Prices and Market Outlook

The Ministry of Finance, in its new Economic Reform Program, has noted that Montenegro’s real estate prices are inflated due to increased foreign investments and that a price drop is expected.

According to Monstat, in Q3 2024, the average price per square meter in new buildings across Montenegro was:

Nationwide average: €1,854
Podgorica: €1,824
Coastal region: €1,995
Central region: €960
Northern region: €1,316
At the end of January 2025, Numbeo estimated real estate prices in key Montenegrin cities:

Podgorica:
City center: €2,216 per sqm
Outside city center: €1,784 per sqm
Tivat:
City center: €2,666 per sqm
Outside city center: €3,166 per sqm
Budva:
City center: €2,625 per sqm
Outside city center: €2,887 per sqm
The average rental yield in Montenegro is relatively low at 5.54-5.70%. Additionally, the market still has tens of thousands of unregistered properties, many of which cannot be legally registered.