Featured in Prime Resi's "postcards from" series, Natasa Grdinic - CEO and Partner of CMM investment Consulting Group, a member of the Chestertons Global Network explains why Montenegro's real estate market in 2024 presents a compelling narrative of growth and opportunity.

The country’s 290km coastline is at the forefront of this expansion, driving both tourism and property investment.

The property sector is experiencing robust growth, primarily fuelled by international interest, with coastal hotspots such as Budva, Kotor, and Tivat recording steady appreciation in property values. As Montenegro moves closer to joining the EU, the market is expected to grow even more, making current investments potentially very profitable.

The market’s resilience is particularly noteworthy given well-documented global challenges. While there was a slight dip in overall tourism numbers in 2024, the luxury segment has seen a significant continued surge. High-end restaurants and five-star hotels are reporting full bookings. indicating continued interest amongst affluent visitors. This trend is reflected in the real estate market, with high-end properties in prime locations seeing increased demand.

There has been a marked shift towards sustainable living, with developers increasingly incorporating eco-friendly designs and materials into their projects. New projects are now featuring next-level amenities such as private marinas, infinity pools, and advanced smart home systems. Many developments are designed with wellness in mind, including home spas, yoga studios, and fitness centres that promote a healthy lifestyle. These luxury buildings are blending modern conveniences with Montenegro's natural beauty, providing a unique lifestyle experience that appeals to discerning buyers.

The Bay area has emerged as a prime location, offering a diverse range of luxury developments that cater to various preferences. From high-net-worth hubs with premium amenities to serene, historically rich towns, the area attracts those seeking both vibrant waterfront lifestyles and peaceful environments rich with historic charm. Budva continues to be a hotspot for investors, particularly due to its strong rental yields driven by consistent tourist aemand. The Old Town of Budva and its surroundings are especially attractive, offering a mix of historical significance and lively nightlife.

The market attracts a very diverse, international clientele, with current enquiries mainly from established European countries such as the United Kingdom, Germany, France, and Italy. There is also a growing influx of buyers from the Middle East, particularly the United Arab Emirates and Turkey, attracted by Montenegro’s visa-free travel options and investment potential. North America has seen the biggest overall increase in buyers, drawn by competitive pricing, the Mediterranean climate, yachting and the lifestyle. This diverse buyer range is helping to drive the market forwards, with global buyers citing the country’s unique blend of natural beauty, investment potential, and lifestyle as the main appeal.

Montenegro’s real estate sector is undergoing significant transformation, with over €3bn invested in developing world-class marinas and luxury waterfront properties. A prime example of this transformation is Porto Montenegro, which has evolved from a former naval base into a prestigious superyacht marina and luxury residential village. This development not only offers high-end apartments and villas but also a vibrant community atmosphere, making it a foca! point for affluent investors and yacht owners.

The entry of premium hospitality brands such as Aman, Hyatt, One and Only, Hilton, Mövenpick, and Ritz-Carlton underscores the country’s ascending status in the luxury market. Iconic destinations like Sveti Stefan, hosting celebrities and royalty at its famed Aman Resort, further enhance Montenegro’s appeal to high-net-worth individuals.
As Montenegro looks towards EU membership, its real estate market stands at a pivotal juncture. The combination of natural beauty, cultural richness, and strategic development positions the country as an increasingly attractive destination for property investment. The government's initiatives, including favourable tax policies and the opportunity to obtain residence through property purchase, have further stimuÎated foreign investment. With its stable currency (Euro) and low real estate tax rates. Montenegro offers a compelling proposition for international investors.

The current market dynamics suggest a favourable environment for investors, with the potential for substantial returns as the country continues its economic and infrastructural development. However, it is key for investors to approach the market with a targeted strategy, focusing on good locations and high-quality property. Montenegro’s real estate market offers a unique blend of immediate appeal and future potential, making it a noteworthy consideration for discerning investors considering a European property investment.

View properties currently on the market to buy in Montenegro here