Montenegro enters the 2026 tourist season with strong momentum: record arrival numbers in 2025, growing interest from foreign investors, and an ever-closer European Union accession are creating a unique market situation. Yet behind the optimistic headlines lies a more complex picture – tourists are arriving in greater numbers but staying for shorter periods, and the real estate market is showing price stabilisation after years of growth. For investors considering purchasing property on the Montenegrin coast, understanding these trends is essential.
Tourist Season 2025: Record Arrivals, a Challenge in Overnight Stays
According to data from Montenegro's Ministry of Tourism, the first seven months of 2025 recorded a 4.28% increase in tourist numbers compared to the same period of the previous year. Particularly impressive are the figures for January–June: according to MONSTAT, Montenegro registered 940,771 tourist arrivals, which is 6.3% more than in the same period of 2024. In June 2025 alone, 195,642 tourists were recorded, representing a 3.3% increase over June of the previous year.
However, the statistics also reveal a concerning trend: the total number of overnight stays in the first six months of 2025 was lower by 272,514 compared to the same period of the previous year – a decline of 5.4%. Montenegro is increasingly becoming a "transit destination" where tourists stay for shorter periods, which directly affects sector revenues and the short-term rental potential of properties.
Did You Know?
According to the UN World Tourism Organization (UNWTO) barometer report for Q1 2025, Montenegro ranks sixth in the world for tourism revenue growth compared to 2019 – with an increase of 87%. In terms of tourist spending, it ranks ninth globally. In September 2025, the number of arrivals grew by 8.4% year-on-year, reaching 189,447 tourists in collective accommodation.
Tourist Structure: Who Visits Montenegro?
According to data for the first six months of 2025, foreign overnight stays are led by tourists from Russia (21.3%), Serbia (17.9%), Bosnia and Herzegovina (5.5%), the United Kingdom (4.7%) and Germany (4.4%). Particularly notable is the strong growth of guests from so-called "distant markets": tourists from China recorded a growth of as much as 53%, from Israel 57%, and from Azerbaijan 87% compared to the same period in 2024.
This market diversification is of key importance for real estate investors. The real estate market in Budva and Kotor traditionally attracts tourists from Serbia and the region, while the luxury segment in Tivat and the Bay of Kotor is increasingly drawing guests from Western Europe, Israel and China – tourists who spend more per day of their stay.
| City / Destination | Average Price (€/m²) | Trend 2025→2026 | Rental Yield |
|---|---|---|---|
| Tivat (Porto Montenegro) | 4,725 €/m² | → Stabilisation | 4.4–5.5% |
| Kotor (Old Town, Perast) | 3,335 €/m² | ↑ Moderate growth | 6.5–7.1% |
| Herceg Novi | 3,437 €/m² | ↑ Strong growth | 5.0–6.5% |
| Budva (centre and riviera) | 2,520–4,500 €/m² | ↑ Moderate growth | 5.8–6.8% |
| Podgorica | 2,488 €/m² | ↑ Steady growth | 6.06–6.90% |
| Bar (riviera) | 2,216 €/m² | ↑ Growth | 4.8–5.5% |
Source: DreamEstate database (current 2026 averages), Global Property Guide Q4 2025, Investropa September 2025.
Top Investment Destinations: Where Are the Highest Yields?
Tivat – Porto Montenegro
A world-class luxury marina and residential complex. Premium apartments reach up to 14,000 €/m². Ideal for short-term rentals to the yachting crowd and business travellers year-round. Yield: 4.4–5.5%.
Kotor – Highest Yield
UNESCO-protected old town with an average daily rate of 94 € and 234 nights of annual occupancy. Stable demand in spring and autumn extends the season. Prices: 3,335 €/m² (average), stone houses in Perast up to 4,000+ €/m².
Budva – Highest Tourist Traffic
Budva accounts for 40% of total arrivals in Montenegro. Centre and riviera: 2,800–4,500 €/m², Bečići and Rafailovići: more affordable options. Short-term rental 80–250 €/night in summer. Yield: 5.8–6.8%.
Airbnb and Short-Term Rentals: A Competitive but Profitable Market
With more than 24,100 properties registered on short-term rental platforms in Montenegro, the market has become highly competitive. According to an analysis by the Investropa portal (September 2025), coastal properties in Kotor, Budva and Tivat achieve 180–230 nights of annual occupancy for short-term rentals – one of the better results in the region.
Short-term rentals via Airbnb and Booking.com offer the greatest income potential, but also the highest operating costs. Average daily rates during the summer season range from 80–120 €/night for standard apartments, while luxury villas in Porto Montenegro and the Dukley Gardens complex in Budva reach 250–500 €/night. According to Global Property Guide data for Q4 2025, the average gross rental yield in Montenegro stands at 5.59% per year.
For properties in Budva rented on a short-term basis, yields range between 5.8% and 6.8%, while Kotor leads with yields of 6.5–7.1%. Podgorica, as a long-term rental destination, offers yields of 6.06–6.90% – above the coastal average for long-term rentals.
"Luxury properties in Tivat, Budva and Kotor can offer an attractive and relatively secure ROI, but only with a realistic calculation of all costs. Limited supply and stable international demand keep prices at a high level even during periods of slower turnover.
— Analysis by prodajanekretnina.me, December 2025 (illustrative quote)
Advantages and Challenges of Montenegrin Tourism in 2026
✓ Advantages
- ✓ Record number of arrivals in 2025 (+4.28% in first 7 months)
- ✓ Montenegro 6th in the world for tourism revenue growth vs. 2019
- ✓ Diversification: growth of tourists from China (+53%), Israel (+57%), Azerbaijan (+87%)
- ✓ EU accession (expected 2028–2030) increases property values
- ✓ Foreign investors invested 113.5 million € in Q1 2025 (+21% y/y)
- ✓ National parks: +33% visitors in first 8 months of 2025
✗ Challenges
- ✗ Overnight stays down 5.4% in H1 2025 – tourists staying for shorter periods
- ✗ VAT on hotel accommodation increased from 7% to 15% in 2025
- ✗ Lack of a unified digital tourist registration system
- ✗ Decline in Russian and Ukrainian tourists (departure of long-stay guests)
- ✗ Traffic congestion and infrastructure issues along the coast
- ✗ High competition in private accommodation (24,100+ properties)
Luxury Projects Defining the Market
The Montenegrin coast is characterised by several mega-projects that raise the standard of the entire market and attract high-net-worth buyers:
Porto Montenegro – Tivat
One of the most prestigious marinas on the Adriatic. Premium apartments reach up to 14,000 €/m². Attracts yacht owners and business travellers throughout the year. Tivat Airport received nearly one million passengers in 2024.
Portonovi – Herceg Novi
Luxury resort with the One&Only hotel in Kumbor. Herceg Novi records one of the strongest price increases on the coast: from 1,300 €/m² in 2020 to 3,437 €/m² in 2026 – a growth of 164% over six years.
Luštica Bay – Golf Resort
An integrated resort with golf courses, villas and hotels on the Luštica peninsula. Attracts buyers seeking exclusivity away from the mass tourism of Budva.
Dukley Gardens – Budva
A premium apartment complex on the Zavala peninsula in Budva. One of the most exclusive addresses in Budva, with direct sea views and views of Sveti Stefan.
The Buying Process and Costs: What You Need to Know in 2026
Property Purchase Costs in Montenegro (2026)
- ✓ VAT on new builds: 21% – paid by the developer (included in the price); buyers do not pay transfer tax on new builds
- ✓ Transfer tax (secondary market): 3% up to 150,000 €, 5% on the amount between 150,001–500,000 €, 6% above 500,000 € – paid by the buyer
- ✓ Property tax: 0.1–1% annually of the assessed value (depending on the municipality)
- ✓ Notary fees: 150–300 € for contract certification
- ✓ Total transaction costs: 5–7% of the property value
- ✓ Process duration: 2–4 weeks for standard transactions
- ✓ Foreigners can purchase freely – apartments, houses and land (except agricultural land and military zones)
- ✓ Residence permit – property ownership facilitates obtaining temporary residency in Montenegro
An important note for 2026: The Montenegrin Government withdrew the controversial amendments to the Law on Foreigners at the end of 2025, which had envisaged a minimum property value of 200,000 € for obtaining temporary residency. This is a positive signal for foreign investors, particularly those considering the purchase of more affordable properties in Bar or Podgorica. See the global overview of the Montenegro real estate market for the latest data.
EU Accession: A Catalyst for Property Price Growth?
The Montenegrin real estate market has been recording strong price growth for several years, and announcements that the country could become an EU member by 2028–2030 are further intensifying interest from buyers and investors. In Q1 2025 alone, foreign investors invested approximately 113.5 million euros in Montenegrin real estate – 21% more than in the same period of the previous year.
The historical precedent is encouraging: Croatia recorded a 40% increase in property prices after joining the EU. If that scenario is repeated in Montenegro, investors buying today can count on significant capital gains in addition to regular rental income. According to analyses by the Investropa portal (January 2026), a realistic scenario for the coming year forecasts price growth of 5–10%, while the double-digit jumps seen in the 2024–2025 period are unlikely to be repeated.
For properties in Kotor and Tivat, which already attract buyers from the EU and Western Europe, the effects of accession could be particularly pronounced.
Season 2026: What to Expect?
According to analyses by the Investitor.me portal (January 2026), Montenegro broke arrival records in 2025, but the average length of stay has shortened, and pressure on prices and service quality is becoming increasingly visible. In 2026, the key question remains: can the country prepare the season in time, diversify its markets and rescue winter tourism?
The UNWTO predicts that due to high prices, tourists will continue to prefer shorter and closer holidays. This means Montenegro could continue to record increased arrivals, but without significant growth in overnight stays unless the range of offerings is improved. The summer season remains the backbone of Montenegrin tourism – traditionally, more than half of annual tourist overnight stays and revenues are generated during July and August.
For real estate investors, this means that a short-term rental strategy remains profitable, but requires careful selection of location and property type. Kotor and Tivat, with their extended season and wealthier tourists, offer a more stable yield than mass-market destinations such as central Budva.
Key Statistics for Investors
According to Global Property Guide data for Q4 2025, the average gross rental yield in Montenegro stands at 5.59% per year. Podgorica leads with 6.06–6.90%, Budva offers 5.85%, and Tivat 4.64% – but with the potential for high capital gains thanks to the luxury segment and EU prospects. Coastal properties in Q3 2025 averaged 2,458 €/m², representing a growth of 23.2% compared to the same period of the previous year.
The 2026 tourist season brings Montenegro a continuation of positive trends alongside structural challenges that require attention. Record arrivals, market diversification and ever-closer EU accession are creating a favourable investment climate for coastal real estate – particularly in Kotor (yield 6.5–7.1%), Budva (2,520–4,500 €/m²) and Tivat (4,725 €/m² average, Porto Montenegro up to 14,000 €/m²). Bar (2,216 €/m²) and Herceg Novi (3,437 €/m²) offer interesting alternative options with solid yields. Regardless of the chosen location, it is essential to carry out a detailed calculation of all purchase costs (5–7% of the value) and the realistic rental income potential before making an investment decision.
