Playing host to some of the most gorgeous, and picturesque coastlines and mountains in all of Europe, the tiny but incredibly attractive nation of Montenegro, situated between Croatia and Albania on the lovely Adriatic Sea, has quickly started rising up the lists of some of the best places on the continent for property investment, as well as offering a calm, carefree lifestyle to many an expat and local alike – many of whom have decided to try and find the best cities for property investment in Montenegro themselves.
Although obtaining residency by investment is an option, albeit riddled with stipulations and yearly time-of-stay requirements that are not as forgiving and easy to maintain, such as as in various neighboring countries, like Serbia or Turkey, for the savvy, global investor looking to add properties to their portfolio which can offer great rental and property yields, but not necessarily looking to actually live long-term in the location of their diversified investment, then Montenegro suddenly becomes an excellent, exotic option to consider.
Despite only having a population of under 630,000 people in the entire country, Montenegro lay’s claim to some of the most beautiful real estate options on the continent – but with so many little towns, dotted up along the Adriatic coast, to consider, which would be the best cities for property investment in Montenegro? Well wonder no further – after having spent significant time in this deeply charming country, I’ve managed to narrow the list down to the top 5 choices below! So without further ado, here are the top 5 best cities for property investment in Montenegro for you to consider adding to your portfolio!
#1: Kotor
Starting with my favorite city on the list, is the incomparable Kotor – a unbelievably picturesque town built along the banks of one of the most gorgeous fjords that would even make those in Norway blush. Surrounded on both sides by lush, green mountains, with the bright blue Bay of Kotor laying invitingly below, this Montenegrin city also has one of the most elegant, charming old towns I’ve ever had the pleasure of visiting – and as you walk through the cobblestone, Venetian-built streets, you too might believe you’ve transported yourself back to a simpler, more enchanting time.
Partially due to Kotor’s physical geography, investment properties are very likely to maintain their value, as there is a limit to what more can be built in the surrounding area, while those looking to maximize their profits on rental yields should look directly within the old town area to find the best value for their money.
The only real limit to and investment in Kotor is perhaps it’s overall lack of sunshine, due to being covered by the shade caused by the mountains it is built into most of the day, but this may not be an issue for some investors, and even digital nomads or expats (it certainly wasn’t for me!). Simply put, for any investor looking at the best cities for property investment in Montenegro, Kotor should certainly be at the top of your list.
#2: Tivat
Meanwhile, on the other side of the fjord, lies the far more sunny, and far more ritzy city of Tivat. Having in recent years seen a huge investment by Middle Eastern firms into the infrastructure of the town, as well as the development of the big, beautiful Porto Montenegro, where one can find some of the most elegant super yachts on the planet, Tivat oozes class and wealth in a way few others, of the best cities for property investment in Montenegro, truly can.
With high class restaurants and shopping options, as well as modern, new infrastructure, Tivat doesn’t quite have the old-world charm of the neighboring Kotor, but it makes up for it with a modern elegance that continues to attract massive interest in investment, as well as substantial property yields. Interestingly enough, property values for purchase in Tivat are usually a bit cheaper than that in Kotor, making this a potentially very lucrative opportunity for the savvy investor.
However, with the high proliferation of various development projects planned, Tivat’s overall property values may remain stagnant in the long-run, even as the city maintains a high level of tourism (paying host to the region’s main airport), ensuring a constant stream of rental yield dollars into the prospective investors coffers. For any expat looking to live, work, or invest, Tivat certainly looks to remain the most exclusive option on the list of best cities for property investment in Montenegro for a long time to come.
#3: Budva
Moving away from the fjord, and directly to the lovely Adriatic coast, the beautiful city of Budva has long drawn tourists to its shores, looking to enjoy great beaches, fantastic nightlife, a rustic old town, with shades of Kotor, as well as a lovely boardwalk and boat pier, echoing similar vibes in Tivat. Budva seems to combine the best cities for property investment in Montenegro into one, small, fantastic package – the best of all worlds so to speak.
This has also been partially why Budva is one of the fastest growing property markets in the entire country, with many future development projects being planned, and already under way. However, due to having no natural or legal borders that could hinder future development, real estate prices in the long run are not projected to have the greatest property gains on future sales, with the market already becoming over-saturated with too much supply, and too little demand, despite the tourism dollars still consistently trickling in.
Additionally to consider is that the nation that provides the most visitors to Budva’s shores is currently Russia – and until the recent, ongoing war is resolved, sentiment could become super hot or super cold, depending on which way the wind blows. As a result, Budva is a potentially more risky option to consider when looking at the best cities for property investment in Montenegro, but certainly still a risk worth considering in 2023, and beyond.
#4: Herceg Novi
For savvy investors looking to capitalize on another part of the coast that has great growth potential, and is quickly becoming a favorite expat hub, then one of the best cities for property investment in Montenegro to consider should certainly be the lovely Herceg Novi. Being located on the most western part of the fjord that makes up the Bay of Kotor, as well as being very close to neighboring Croatia, Herceg Novi is in many ways the reverse of Budva, offering a less party heavy atmosphere in favor of a quieter, more tranquil feel.
Development projects are also altogether far less common than of those sprouting up in Tivat or Budva, but for those looking to perhaps invest in quaint single family homes, as well as parts of Herceg Novi’s tiny but very pretty old town, with its stone-built architecture, there are many lucrative opportunities to be had in this quietly, but quickly growing town, which has become very popular as late with couples, retires, and those with children – all looking to escape the hustle and bustle of the city, and live somewhere with memories of an idyllic yesterday.
Being very close to the world-famous city of Dubrovnik also gives the city lots of potential for investment in rental properties looking to take advantage of day-trippers from nearby Croatia, looking for a taste not only of Montenegro, but also of an equally as gorgeous, but far more peaceful Adriatic view. Despite the forecasts of Herceg Novi remaining a small, quiet, family oriented town are mostly accurate, for those looking for a more intimate, small-scale, and affordable financial opportunity, then this town certainly should be one of the best cities for property investment in Montenegro for you to start thinking about!
#5: Bar
Moving down the coast now towards Montenegro’s southern coastline, is the equally as charming city of Bar, yet another one of the best cities for property investment in Montenegro, especially for those looking at capitalizing on the tourism dollars sure to come from not only expats, locals, and digital nomads alike, but also from those visiting from nearby Albania.
Although the city of Ulcinj is indeed more popular with the Albanian populace looking to go on holiday on the beaches of their neighboring country, Bar shines in many ways that Ulcinj just doesn’t deliver. Cleaner water and sand, more natural green spaces, and a much larger population than the border village that Ulcinj mostly resembles, all give Bar the absolute edge as the top tier destination not only for tourism, but also for investment in southern Montenegro.
However, as with Budva, due to Bar’s physical geography, the growing popularity of the city could spur a large growth of future development projects, that could hamper greater capital gains increases over the long run, while in the short run, Bar’s tourism dollars may be in shorter supply than normal, due to the sanctions and European-wide travel restrictions that have made their favorite patrons, the Russians, less likely to travel abroad for holiday. Yet despite these potential hurdles, Bar remains a fantastic place for real estate investment, and easily remains one of the best cities for property investment in Montenegro.
Destination: Montenegro, A Magical Land of Intriguing Possibilities
Despite its small size, Montenegro packs more beauty into each square kilometer than most places on the planet, and is guaranteed to capture your heartstrings with every moment spent amongst its magical fjords, its lovely beaches, and its incredibly charming towns. Although the nation does have its political issues to contend with, as well as remaining a more challenging destination to secure permanent residency then in other Eastern European nations, a topic I cover more in an article I’ve written here, Montenegro remains one of the top destinations for property investment on the entire continent.
From the stone streets of Kotor, to the beaches of Budva, to the charming hills of Bar, to the lap of luxury in Budva, to the family-friendly appeal of Herceg Novi, to everything in between, no matter which of the best cities for property investment in Montenegro you choose to explore, you are sure to find not only prudent financial opportunity, but quite possibly discover a place that is summed up best in the word’s of Lord Byron, when he first witnessed this enchanting land – as ‘the most beautiful encounter between the land and the sea… When the pearls of nature were sown, handfuls of them were cast on this soil.’ I could not agree more.
If you’d like to read more about Montenegro, or would like to read about other places in Eastern Europe I consider some of the best to live, work, and relocate to, then feel free to read my in-depth article on the topic here as well. I’m sure you’ll be glad you did!