Vacation apartments in Montenegro - a lucrative investment?
Montenegro, a small country on the Adriatic coast, is increasingly perceived as an attractive destination for real estate investments. Vacation apartments in Montenegro in particular are becoming increasingly popular with investors who are attracted by the country’s natural beauty, rich history and economic opportunities. In this article, we shed light on why vacation apartments in Montenegro could be a lucrative investment and look at rental prices in different regions of the country.
The attractiveness of Montenegro
Montenegro has invested heavily in its tourist infrastructure in recent years, which has led to an increase in visitor numbers. The country offers an impressive combination of picturesque coastal towns, historical sites and breathtaking natural landscapes. This diversity makes Montenegro an ideal place for vacation rentals. In addition, the cost of living and real estate prices are relatively low compared to other European countries, which makes it particularly attractive for investors.
Rental prices of vacation apartments in Montenegro
The rental prices for vacation apartments in Montenegro vary greatly depending on location and season. In general, the country can be divided into two main regions: the coastal region and the inland.
Coastal region
The coastal region of Montenegro, especially towns such as Budva, Kotor and Herceg Novi, attract the most tourists. During the high season (June to August), rental prices for vacation apartments here can rise considerably. In Budva, one of the most popular destinations, average rental prices during the high season are around 100 to 150 euros per night for a standard vacation apartment. In the low season (September to May), prices fall to around 50 to 80 euros per night.
In Kotor, a UNESCO World Heritage Site, prices are similarly high. Here, a vacation apartment can cost between 120 and 180 euros per night during the high season, while prices fall to around 60 to 100 euros per night in the low season. Herceg Novi offers slightly cheaper options with high season prices of around 80 to 120 euros per night and low season prices of 40 to 70 euros per night.
Inland
Montenegro’s inland region, which includes the Durmitor National Park and the towns of Podgorica and Žabljak, offers a quieter alternative to the coastal region. Rental prices for vacation apartments are generally lower here, making it an attractive option for price-conscious tourists.
In Žabljak, a popular destination for nature and winter sports enthusiasts, rental prices are around 60 to 100 euros per night during the high season, while they drop to around 30 to 50 euros per night in the low season. In the capital Podgorica, rental prices are comparatively stable and are around 40 to 70 euros per night all year round, regardless of the season.
Long-term rental as an additional source of income
Another aspect that makes vacation apartments in Montenegro a lucrative investment is the possibility of renting them out long-term outside the main tourist season. Especially in the low season, when demand for short-term vacation accommodation falls, long-term tenants can provide a constant source of income. This is particularly attractive in cities such as Podgorica or near universities and business centers, where the demand for long-term rental apartments is high.
Long-term rental agreements can generate stable and predictable income and help to increase the overall profitability of the property. While monthly rental rates for long-term rentals may be lower than short-term rentals during peak season, they still provide a valuable opportunity to avoid vacancies and secure ongoing income.
Investment potential
Vacation apartments in Montenegro not only offer attractive rental yields, but also the potential for value appreciation. The country’s growing popularity as a tourist destination and the continuous investment in infrastructure are contributing to the upward trend in real estate prices. In addition, the bureaucratic hurdles for buying real estate in Montenegro are relatively low for foreigners, which makes the buying process easier.
Advantages and disadvantages of the investment
Advantages:
- Attractive rental yields:
The seasonal fluctuations in rental prices can lead to high income during the high season, especially in popular coastal towns. - Value appreciation potential:
Due to the increasing demand from tourists and ongoing investments in infrastructure, real estate in Montenegro has a high potential for value appreciation. - Diverse landscapes:
Montenegro’s varied geography attracts different types of tourists, from beach vacationers to those interested in nature and culture. - Low cost of living:
Compared to other European countries, the cost of living in Montenegro is lower, which makes it cheaper to maintain a property. - Long-term rental options:
Vacation apartments in Montenegro can be rented out long-term outside the tourist season in order to generate a constant income.
Disadvantages:
- Seasonal fluctuations:
Income from vacation apartments in Montenegro can be highly seasonal, which can lead to unpredictable fluctuations in income. - Competition:
With the increase in tourism, competition among vacation rental companies is also growing, especially in popular areas. - Economic uncertainty:
Montenegro is still an emerging market, which can be associated with economic and political uncertainties.
Overview table of rental prices for an average vacation apartment in the different areas of Montenegro
| City | High season (June – September) | Low season (October – May) |
|---|---|---|
| Kotor | €100 – €200 per night | €50 – €100 per night |
| Budva | €80 – €180 per night | €40 – €80 per night |
| Herceg Novi | €70 – €150 per night | €35 – €70 per night |
| Tivat | €90 – €160 per night | €45 – €90 per night |
| Bar | €60 – €140 per night | €30 – €60 per night |
| Ulcinj | €70 – €160 per night | €35 – €70 per night |
| Zabljak | €50 – €120 per night | €25 – €50 per night |
| Rozaje | €40 – €90 per night | €20 – €40 per night |
| Bijelo Polje | €40 – €90 per night | €20 – €40 per night |
Conclusion
Vacation apartments in Montenegro offer lucrative investment potential for investors who are prepared to accept the seasonal fluctuations of the market. With rising tourist numbers and continuous investment in the country’s infrastructure, both rental yields and opportunities for value appreciation are promising. Montenegro’s picturesque coastline, historical sites and diverse landscapes attract a wide range of tourists, further driving the demand for vacation rentals in Montenegro.
In addition, the possibility of long-term rentals outside the peak season provides a valuable source of income that helps to maximize the profitability of the property. However, investors should carefully examine the location and condition of the property and carry out a thorough market analysis in order to realize the full potential of their investment. Despite the challenges that come with seasonal fluctuations and growing competition, vacation rentals in Montenegro offer an attractive opportunity for those looking to invest in the burgeoning real estate market of this enchanting country.
Get an overview of the range of vacation apartments in Montenegro
It helps immensely to have a look around the “Booking” and “AirBnB” portals. There you can get a feel for the facilities and prices of the vacation apartments currently on offer in Montenegro – also and above all in the different regions of Montenegro.
You will see that there is basically everything from very cheap rooms with fairly spartan furnishings to luxury properties for a lot of money per night. So it is really up to each individual to decide which prices and furnishings they choose for their apartments.
