Foreign owners sell homes in Budva

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Russian and Turkish citizens are selling property in Budva and leaving the country, Blic reports. Monthly rents for some apartments have fallen by €200. New entry and residence permit rules are increasing costs for foreign residents. Demand along the coast remains uneven: some properties are losing buyers, while others retain high prices.

Supply and demand in Budva

Real estate agent Tomislav Ranković reports that the supply of apartments in Budva exceeds demand. Foreign owners are listing their homes for sale, while interest in new purchases is weakening. He estimates that around 15% of Turkish citizens have left Montenegro; this figure is based on his observations rather than official statistics.

Intensive development is changing the preferences of affluent buyers. Ranković linked interest in the Bay of Kotor, Tivat and Luštica to the search for a quieter environment. A decline in buyer numbers in Budva may be accompanied by a redistribution of investment between resorts within Montenegro.

An oversupply of apartments coexists with a shortage of family homes in quiet areas. Construction has long focused on tourist apartments, with few conventional homes built for permanent residence. Apartments account for most available properties, while the choice of land plots and houses with traditional layouts is limited.

Prices and rents in Budva

Ranković discussed falling housing prices in Montenegro in an interview with Radio Budva back in April 2026. In Dubovica, Lazi and Bečići, he estimated that new-build prices had declined by around 20% compared with 2025, and resale apartment prices by 10–20%. This primarily concerned hillside properties that were less attractive to foreign buyers.

Central Budva and Rozino held their values better, the agent noted. Even within the same resort, sales conditions depended on a property's location and interest in the particular neighbourhood. Excess supply put greater pressure on less sought-after properties, whose owners had to make price concessions.

In the long-term rental market, declines also affected more popular neighbourhoods. One-bedroom apartments in Rozino and near the faculty previously rented for €700–750 per month; comparable units in new buildings or with good fittings are now available for €500–550. Ranković estimates the reduction in monthly rent at €200, cutting owners' income.

New-build housing in Montenegro

According to preliminary MONSTAT data, the average price of new-build housing in Montenegro in the second quarter of 2026 was €2,557 per sq. m, compared with €2,201 in the same period of 2025 — an increase of 16.2%. The highest figure was recorded in the coastal region, at €2,838. A square metre sold for €2,510 in Podgorica, €2,131 in the central region and €2,145 in the north.

Compared with January–March, price growth was more pronounced along the coast. New-build prices there rose from €2,575 to €2,838 per sq. m, or by 10.2%. Across Montenegro, the increase was 4.6%, from €2,445 to €2,557.

The survey covers apartments sold by developers for the first time under signed purchase agreements. Resale housing, rentals, land plots and commercial properties are excluded from the calculation. Coastal-region data combine transactions in Budva, Bar, Herceg Novi, Kotor, Tivat and Ulcinj.

Montenegro visas and residence permits

Rules governing foreign residents are changing in three areas. Visas are being introduced for short visits, homebuyers face a minimum property value for obtaining residence permits, and business owners must meet financial requirements when renewing their permits. These measures affect different groups: tourists and prospective buyers, new residents and entrepreneurs already working in the country.

Montenegro visas from 1 November

On 23 July 2026, Montenegro's government approved new entry rules. From 1 November, visas for Russian citizens and nationals of Türkiye, Belarus, China and Saudi Arabia will become mandatory. According to the Ministry of Foreign Affairs, the decision is linked to aligning migration policy with the European Union; applications are accepted through channels including VFS Global centres in Russia and Türkiye.

Visitors will face an additional procedure before travelling. This will also affect those intending to view property before buying or spend a holiday in their own apartment. Holders of valid Montenegrin residence permits can enter with their passport and residence document: introducing visas does not in itself revoke their status.

Residence through property ownership

To obtain residence through property ownership, new applicants must provide evidence that the property's tax assessment is at least €150,000. Article 56 of the Law on Foreigners requires a document from the local tax authority rather than a valuation stated in a listing. Previously, a permit could be obtained without this minimum threshold.

Permits issued before the amendments took effect remain subject to the previous renewal rules under Article 217b. EU citizens and their family members, as well as citizens of Iceland, Liechtenstein, Norway and Switzerland, are exempt from the requirement to prove the property's value. The new conditions therefore differ according to nationality and the date residence status was obtained.

Residence through business

On 12 November 2025, the government proposed tightening the requirements for residence permits for entrepreneurs. The relevant foreign executives and company owners were to be required to employ at least three people, including two Montenegrin citizens working full-time. Such staffing would have increased small firms' recurring costs, but this approach was revised before the law was adopted.

According to parliamentary committee minutes, on 12 December 2025 the government eased the requirements for renewing residence through business. Hiring Montenegrin citizens was replaced with proof of annual tax and contribution payments. The committee also recorded submissions from the business community and NGOs warning of economic risks; the changes were made while the legislation was still a draft.

The Law on Foreigners containing the new provisions took effect on 17 January 2026. The final version of Article 70 requires evidence of at least €5,000 in taxes and contributions paid annually when renewing a permit. This condition applies to entrepreneurs and executive directors who are sole owners or hold more than 51% of a company's capital. Employing three people is not stipulated as this renewal requirement.

Alternatives to Montenegro

Tighter rules in Montenegro raise the question of another place to live for foreign residents. For Russians, Serbia may be one option within the Balkans. According to its Ministry of Foreign Affairs, the country retains visa-free entry for up to 30 days for holders of ordinary Russian passports. A suitable residence status must be obtained for a longer stay.

Another option is moving to Georgia, where Russian citizens may stay without a visa for one full year. This period allows time to find housing and settle in without frequent departures from the country. However, the right to work and grounds for obtaining a residence permit are regulated separately from entry rules.

For an apartment owner, changing country of residence does not necessarily mean selling the property. Keeping it allows the owner to use it during visits or rent it out if this fits their plans. The decision to sell will depend on maintenance costs, rental income and the need to release funds for relocation.

Conclusion

International Investment analysts believe that excess supply in Budva strengthens investors' negotiating position when buying. Sellers who need to release funds for relocation may be more willing to make concessions. This creates opportunities to buy at a discount, but a subsequent resale may take longer if the inflow of foreign buyers declines.

For investments in long-term rentals, the departure of foreign residents creates a risk of lower income and longer vacancies. A lower purchase price does not necessarily offset these losses: reduced rents may lengthen the payback period. Investments based on rapid apartment price growth or letting at previous high rates become more vulnerable.

For investors planning to relocate, tighter rules mean additional costs. If the property's tax assessment is below €150,000, another basis for residence will be required, while renewing a permit through business requires at least €5,000 in annual tax and contribution payments. These expenses may reduce the benefit of a discount and make investment in another country more attractive.

Frequently asked questions

How much does it cost to rent an apartment in Budva in autumn 2026?

Real estate agent Tomislav Ranković cites rents of €500–550 per month for one-bedroom apartments in Rozino and near the faculty. Comparable properties previously rented for €700–750. These are examples of individual properties, rather than an average rent for the entire city.

Are property prices falling in Montenegro?

Trends vary by neighbourhood and property type. Ranković reports discounts in certain parts of Budva, while MONSTAT records an increase in the national average price of new-build apartments sold: it reached €2,557 per sq. m in the second quarter of 2026.

When will Russian citizens need visas to enter Montenegro?

The new requirements take effect on 1 November 2026. They also apply to citizens of Türkiye, Belarus, China and Saudi Arabia.

Does a holder of a Montenegrin residence permit need a visa?

A valid residence permit, together with a passport, provides a basis for entry. Introducing visas does not revoke a residence permit already issued.

What property is required to obtain a Montenegrin residence permit?

For new applicants, the property must have a tax assessment of at least €150,000. Its value must be confirmed by a document from the local tax authority; the asking price in a listing does not in itself establish compliance with this requirement.

Does the €150,000 threshold affect those who already obtained residence through property ownership?

For permits issued before the amendments took effect, Article 217b preserves the previous renewal rules. New applicants are subject to the updated requirements, with the exceptions provided by law.

Must three employees be hired to renew residence through business?

This requirement was discussed in the initial draft but revised before the law was adopted. The final version of Article 70 requires evidence of at least €5,000 in annual tax and contribution payments for entrepreneurs and executive directors who are sole owners or hold more than 51% of a company's capital.

What is changing for investors in Budva property?

Greater supply offers more scope to negotiate a discount. At the same time, falling rents and the departure of some residents create risks of lower income, vacancies and a longer resale period. Residence permit requirements also enter the calculation when buying for relocation.