The real estate market in Montenegro in the first half of 2025 has shown stable demand, especially in Podgorica and coastal cities. Demand is largely driven by buyers from the diaspora and tourists looking to invest or rent short-term. Despite a slight drop in the number of transactions compared to the previous year, the market remains active. Prices of new apartments continue to rise, influenced by strong buyer interest and high construction costs. High interest rates and rising prices have made local buyers more cautious.
According to MONSTAT, the average price of new apartments in the first quarter of 2025 was 2,158 euros per square meter nationwide. In Podgorica, it was 2,066 euros; in the coastal region, 2,328 euros; in the central region, 1,050 euros; and in the northern region, 1,209 euros. Prices vary significantly depending on location, construction quality, and proximity to the sea or city center. Luxury apartments in towns like Tivat and Budva can exceed 4,000 euros per square meter. Compared to last year, prices rose by 17 percent nationally, 14.1 percent in Podgorica, and 14.8 percent in the coastal region.
The price increase is most visible in Podgorica and on the coast. Main drivers include limited supply of quality new construction, higher labor costs, strong demand from the diaspora and foreign nationals, and the appeal of tourist zones. There is a lack of affordable medium-sized apartments, especially between 40 and 70 square meters.
Mišković expects a moderate further increase in prices by three to five percent by the end of the year, particularly in Podgorica and along the coast. In the long term, depending on factors such as inflation, interest rates, and geopolitical conditions, prices may stagnate, although high-end segments and tourist locations are likely to stay expensive or continue growing. Demand is expected to remain steady, but domestic buyers may act more cautiously due to high prices and harder access to loans. Foreign buyers, especially from the diaspora, Russia, and Western Europe, will remain important market players.
Rental demand is strongest during the summer on the coast and year-round in Podgorica. Although demand has slightly decreased—mainly due to lower purchasing power among Turkish citizens and local residents replacing Russian and Ukrainian renters—rental prices have remained stable. Fewer leases are being signed, but rental rates are still at the same level as late 2024.
In Podgorica, monthly rent for one-bedroom apartments ranges from 350 to 550 euros, two-bedroom units from 500 to 800 euros, and three-bedroom apartments from 700 to 1,200 euros. In Budva and Tivat during summer, one-bedroom apartments rent for 600 to 1,000 euros, two-bedroom for 800 to 1,500 euros, and three-bedroom for 1,200 to 2,500 euros. Luxury units can command even higher prices.
