Whereas Croatia is taking it easy in its development into a modern holiday country, Montenegro is taking a very different approach. Foreign investors are embraced, everything seems possible and, as a non-EU member, the country offers great tax advantages that will particularly appeal to wealthy people. Under the slogan ‘Switzerland on the Mediterranean’, Montenegro sets its sights on the jet set, boat owners and investors. Yet the country offers much more.

Popular regions in Montenegro

Montenegro, with its enchanting coastline, majestic mountains and charming cities, has become increasingly popular as a destination for property investors and holidaymakers in recent years. The country offers a unique blend of natural beauty, pleasant climate and relatively affordable property prices. Whether you are looking for a holiday home, an investment property or just a place to escape the hustle and bustle, Montenegro has something for everyone. In this article, we discover the most popular regions in Montenegro to buy a second home, which are not only ideal for holidays, but also offer promising real estate markets.

1. Kotor: History and Coastal splendour all in one

Situated on the spectacular Kotor Bay, Kotor is one of Montenegro’s most beautiful and sought-after regions. A UNESCO World Heritage Site, the city offers a unique combination of medieval architecture, breathtaking views and a rich history. Many property investors choose Kotor for its bay appeal and proximity to both the city and nature. You will find a wide range of real estate in Kotor, from charming flats in the old town to luxury villas overlooking the bay.

Property prices in Kotor have risen in recent years due to the region’s growing popularity among tourists and investors. Kotor offers excellent rental opportunities, especially for short-term rentals, given the number of tourists visiting the city every year. If you are looking for a second home with both historical charm and beautiful nature, Kotor is the perfect location.

2. Budva: The Heart of the Montenegrin Coast

Budva is one of the most popular tourist destinations in Montenegro, known for its lively atmosphere, beautiful beaches and vibrant nightlife. Located on the Adriatic Sea, Budva offers a wide range of real estate options, from modern flats to luxury villas with sea views. The city is an excellent choice for those looking for a second home in a vibrant city with a well-developed infrastructure.

The Budva region is also one of the best places to buy a holiday home to rent out. Tourism is active here all year round, meaning the demand for holiday rentals is constant all year round. This makes it an excellent region for generating rental income. With its combination of a vibrant tourism sector, beautiful beaches and excellent amenities, Budva is one of the top destinations to buy a second home in Montenegro.

3. Tivat: Luxury Living on the Coast

Tivat, located near the famous Kotor Bay, has received significant investment in recent years, making it one of the fastest-growing regions of Montenegro. It is home to the exclusive Porto Montenegro marina, one of the largest and most luxurious marinas in the Mediterranean. Tivat offers a wide range of luxury real estate ranging from modern flats to chic waterfront villas.

The property market in Tivat has great potential for investors looking for luxury homes or rental properties with high yields. Tivat attracts wealthy international tourists and entrepreneurs, making it one of the most sought-after places to buy a second home in Montenegro. Its luxury infrastructure, proximity to the airport and serene surroundings make Tivat an ideal choice for those looking for exclusivity and comfort.

4. Herceg Novi: Beautiful Coast and Quiet Atmosphere

Herceg Novi is a charming town on the coast of Montenegro, located at the entrance to the Bay of Kotor. This town has a peaceful and relaxing atmosphere, perfect for those looking for a second home in a more relaxed environment. The city is known for its historic castles, lush gardens and quaint streets.

Property prices in Herceg Novi tend to be lower than in Kotor or Budva, making it attractive to those looking to buy a more affordable second home without sacrificing beauty and quality. Herceg Novi offers both flats and villas with sea and mountain views, making it a great place to invest in real estate. The city is also a great place for long-term rentals, as its quiet atmosphere attracts many expats and tourists looking for longer-term stays.

5. Bijela and Igalo: Explore the Developing Regions

Besides the larger and better-known regions, smaller towns such as Bijela and Igalo on the Montenegrin coast are also attractive options for property investors. These regions have lower price levels and have become increasingly popular in recent years. They are close to Herceg Novi and offer excellent value for those looking for a second home without the high prices of the more touristy regions. The tranquillity and local charm of these towns make them ideal for a holiday home.

Buying a holiday home in Montenegro, the conclusion

Montenegro is a fantastic destination for buying a second home, with its variety of regions to suit different tastes and budgets. Whether you are interested in the historical beauty of Kotor, the lively atmosphere of Budva, the luxury of Tivat, or the quiet charm of Herceg Novi, Montenegro offers plenty of opportunities for property investors and holidaymakers. The country continues to develop, making it an ideal location for both holiday rentals and long-term investment.

With attractive property prices, growing tourism and a wide range of regions to choose from, Montenegro is the perfect place to buy your second home and take advantage of the many benefits it has to offer.