Buying an apartment is one of the biggest investments many people make in their lifetime. In Montenegro, one of the most common dilemmas is — an apartment on the coast or in Podgorica? To help potential buyers make an informed decision, we analyzed current trends in the real estate market.
We speak from real experience, as we are currently developing two projects — the urban residential building Terracotta in Podgorica and the exclusive Oravista complex in the Bay of Kotor, which gives us direct insight into the advantages and challenges of both markets.
Lifestyle: City or Coast?
Podgorica is the administrative, economic, and academic center of Montenegro, active throughout the entire year. Owning an apartment in Podgorica means constant urban dynamics and access to all public institutions, businesses, and social infrastructure. The city offers a broad range of cultural events, sports facilities, restaurants, shopping malls, and educational institutions — all contributing to a high quality of life, especially for those planning to live in the city year-round.
The coast, on the other hand, has a more pronounced seasonal rhythm. Cities like Kotor, Budva, Herceg Novi, and Bar become true tourist hotspots during the summer months, offering rich tourist attractions, beautiful beaches, and historic sites. However, the winter season brings a noticeable decline in activity, with many hospitality venues closing and a generally slower pace of life.
Long-Term vs Short-Term Rentals
When it comes to real estate investment, the intended use of the apartment plays a key role:
- Podgorica is ideal for long-term rentals, with stable demand throughout all 12 months. Students, employees in the public and private sectors, and families form a reliable tenant base. Investment in Podgorica comes with fewer seasonal fluctuations and requires less involvement, with the potential for multi-year leases.
- The coast is more attractive for short-term rentals, especially during the tourist season. In summer, you can achieve high returns per night, but occupancy drops significantly off-season. Short-term rentals demand more active involvement in advertising, guest turnover, cleaning, and overall property management.
Property Prices: Capital vs Coast
In Podgorica, apartment prices start at around €2,000 per square meter, depending on the condition of the apartment, age of the building, location, and amenities. Newly built apartments and modern residential complexes are priced higher but remain considerably more affordable than coastal properties. This pricing structure allows for a relatively faster return on investment through steady long-term leasing.
On the coast, especially in the sought-after areas of the Bay of Kotor and other major tourist destinations, prices typically start around €3,500 to €4,000 per square meter. The price is influenced by proximity to the sea, views, construction quality, and amenities. Coastal investments require a higher initial capital, but they also offer the potential for higher returns.
Maintenance and Additional Costs
Maintenance expenses also vary by location:
- Apartments in Podgorica generally have lower utility costs, fewer seasonal repairs, and less wear and tear due to year-round occupancy.
- Coastal apartments often require additional maintenance due to the impact of the sea climate, humidity, and the need for extra care in furnishing and securing the property during the off-season.
What to Choose?
- If your goal is stable monthly income with minimal property management, an apartment in Podgorica is the most logical choice.
- If you prefer seasonal income, the option to enjoy the property yourself in the summer, and don’t mind being more involved in the rental process, the coast is an ideal option.
Conclusion
Real estate investment in Montenegro depends on your goals. The capital offers stability and convenience, while the coast provides attractiveness and potentially higher, but seasonally limited, returns.
The key to a successful investment lies in good preparation: thorough market analysis, a clear strategy, and timely execution. Whether you’re aiming for stable income in Podgorica or the dynamic potential of the coast, our advice is the same — surround yourself with reliable partners and make data-driven decisions, not emotional ones.
For any additional information or guidance when buying property, feel free to contact us — we’re here to help you make the right choice.
