Budva Property Market Report: Q1 2026

Budva remains Montenegro's most active property market. Here's our Q1 2026 analysis.

Market Overview

Budva continues to lead Montenegro's coastal property market, accounting for approximately 40% of all transactions.

Key Statistics Q1 2026

Price Analysis by Area

Old Town (Stari Grad) - **Average**: €3,800-4,500/sqm - **Trend**: Stable (limited supply) - **Best for**: Premium rentals, lifestyle buyers

Slovenska Beach Area - **Average**: €3,000-3,500/sqm - **Trend**: +10% YoY - **Best for**: Beach access, rental income

Becici - **Average**: €2,500-3,200/sqm - **Trend**: +8% YoY - **Best for**: Families, longer stays

Rafailovici - **Average**: €2,200-2,800/sqm - **Trend**: +12% YoY - **Best for**: Value, beach proximity

Przno - **Average**: €2,800-3,500/sqm - **Trend**: +7% YoY - **Best for**: Quiet beach, established area

Sveti Stefan area - **Average**: €3,500-5,000/sqm - **Trend**: +15% YoY - **Best for**: Views, prestige, investment

Transaction Analysis

Buyer Origins - Russia: 28% (down from 35% in 2024) - Turkey: 18% (up from 12%) - UK: 15% (stable) - Germany: 12% (up from 8%) - Domestic: 10% - Other: 17%

Property Types - 1-bed apartments: 35% - 2-bed apartments: 40% - 3+ bed apartments: 15% - Houses/villas: 10%

Purpose - Holiday home: 45% - Investment (rental): 35% - Permanent residence: 15% - Speculation: 5%

Rental Market

Short-Term Rental Rates (Peak Season) | Type | Nightly Rate | Occupancy | |------|-------------|-----------| | Studio | €50-80 | 85% | | 1-bed | €70-120 | 90% | | 2-bed | €100-180 | 85% | | 3-bed | €150-250 | 75% |

Annual Rental Yields | Area | Short-term | Long-term | |------|------------|-----------| | Old Town | 9-12% | 5-6% | | Slovenska | 8-11% | 5-6% | | Becici | 7-10% | 4-5% | | Sveti Stefan | 8-12% | 5-7% |

Market Drivers

Positive Factors 1. **Tourism growth**: Record 2025 season extended momentum 2. **EU accession progress**: Driving investment demand 3. **Infrastructure**: Highway improving access 4. **Digital nomads**: Growing remote worker community 5. **Turkish buyers**: Strong demand from Turkey

Headwinds 1. **Interest rates**: Higher borrowing costs globally 2. **New supply**: Multiple projects completing 2026-2027 3. **Seasonality**: Winter remains very quiet 4. **Geopolitics**: Regional uncertainty

Notable Developments

Completing 2026 - **Dukley Village Phase 2**: 45 apartments, premium positioning - **Maestral Residences**: 120 units, beach access - **Central Gardens**: 80 apartments, mixed-use

Launching 2026 - **Budva Hills**: 200+ units, hillside development - **Marina Bay Residences**: Waterfront project

Investment Opportunities

Best Value **Rafailovici** - Still 10-15% cheaper than central Budva with comparable beach access. Good for rental yield focus.

Growth Potential **Sveti Stefan corridor** - Prestige location with limited supply. Premium appreciation likely.

Rental Income **Old Town edges** - High occupancy, premium rates, walkable to attractions.

Avoid - Very large units (3+ bed) - Lower demand - Ground floor without garden - Less popular - Far from beach (500m+) - Harder to rent

Price Forecasts

Short-term (12 months) - Prime areas: +5-8% - Secondary areas: +3-5% - New developments: +2-4%

Medium-term (3 years) - EU accession timeline will dominate - If 2028 accession confirmed: +15-25% potential - If delayed: +5-10% organic growth

Buyer Recommendations

Budget €100-200k - 1-bed in Becici or Rafailovici - Focus on rental yield - Avoid compromising on location

Budget €200-400k - 2-bed in good Budva location - Balance of rental and personal use - Sea view if possible

Budget €400k+ - Premium Old Town or sea-front - Sveti Stefan area - Consider villa options

Conclusion

Budva remains the safest bet for Montenegro property investment. Strong rental demand, diverse buyer pool, and continued price appreciation make it the market's benchmark.

The main risk is overpaying - ensure you compare prices carefully and use DOMA's verified listings to see realistic market values.

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