Five Tips for Real Estate Buyers in Montenegro

Foreigners eagerly buy homes and apartments in Montenegro. The country offers a wonderful climate, inspiring landscapes, low taxes, and easy access to residence permits—making it an attractive destination for both investment and lifestyle.

However, like any market, Montenegro has its risks. Here’s what to consider before making a purchase.

1. Check the documents

This is important everywhere, but on Montenegro’s young real estate market, it is crucial. The country became independent in 2006, and a construction boom followed immediately. Government institutions were unprepared—detailed development plans, roads, and utilities were often missing.

As a result, tens of thousands of properties (estimates range from 40,000 to 100,000) were built without proper legalization. People live in them, buy and sell them, but registering such properties officially can be risky or even impossible.

Always verify documents for both the property and the developer.

2. Study the surroundings

Another risk relates to the country’s youth. Infrastructure is still under development in many areas. You may find a beautiful apartment in a quality building, only to discover there’s no proper access road or parking nearby.

When buying remotely, ask your realtor to show not only the apartment but also the surrounding neighborhood. Check that the area has all necessary facilities for comfortable living or vacationing.

3. Consider the service

Many investors are used to large resort complexes with full-service management, like in Turkey or Spain. Montenegro has very few such projects, and most properties are small residential complexes or standalone houses without organized service.

Think about who will maintain your property while you are abroad, or manage rentals if you plan to earn income. Plan these details before signing the contract.

4. Assess the potential

Montenegro’s young market also offers opportunities—mainly its investment potential. Property values are steadily rising. Once Montenegro joins the EU (currently a candidate country), demand—and prices—are expected to increase further, including from foreigners seeking residence permits that allow visa-free travel across Europe.

As of Q3 2024, new-build prices increased by 12% year-on-year. The best potential is in popular tourist locations near key infrastructure. Check that your chosen property has factors that support future price growth.

5. Buy new-builds

One legal way to reduce additional costs is to buy directly from a developer. Since January 1, 2024, property transfer taxes in Montenegro have increased: up to €150,000 — 3%; €150,000–500,000 — €4,500 + 5%; above €500,000 — €22,000 + 6%. Buyers of new-builds pay none of this tax.

Example of a Reliable Project: Lustica Bay

Documents

Orascom Development is an experienced international developer of integrated resorts. In Montenegro, it operates with government support (holding 10% of shares), and Lustica Bay is a priority project for the coast. The master plan was developed before construction began and has received international recognition.

The company’s legal department prepares all contracts and documentation for buyers from 40+ countries.

Surroundings

Lustica Bay is a fully integrated resort city: landscaped waterfront, marina, five private beaches, parks, shops, restaurants, schools, daycare, police and fire stations, hospitals. Montenegro’s first professional golf course is also under construction here.

Service

A management company oversees all infrastructure and properties. Owners can participate in a rental program, receiving passive income without any hassle.

Potential

Property prices in Lustica Bay rise faster than the market average. In 2012, Marina Village properties near the sea sold for €2,800/m²; now they cost around €10,000/m². The main driver is the scale of the project—more infrastructure and services increase the value of each property.

Costs

As a new-build, buyers do not pay property transfer tax. All additional costs—lawyer, notary, translator, even real estate agent fees—are covered by the developer. Flexible installment plans are available, with a down payment starting at 20%.

Properties for Sale in Lustica Bay

The Peaks

A new era in Montenegrin real estate. The first golf residences in the country with breathtaking views of the Adriatic and Bay of Kotor. Villas, townhouses, and apartments.
Area: from 104 m²
Prices: from €740,000