Objekta - Budva Real Estate Investment Guide: Where & Why to Invest in 2025

Investing in Budva Real Estate

Budva, Montenegro, has emerged as one of the most sought-after real estate markets in the Balkans. With its scenic coastline, growing tourism industry, and investor-friendly policies, Budva offers lucrative opportunities for property buyers.

But where should you invest, and why is 2025 the right time? Understanding these factors can help maximize returns and reduce risks—keep reading to discover the key initial investment tips and trends.

Why Budva is a Top Real Estate Investment Destination

1. Strong Tourism Industry Driving Rental Demand

Budva is Montenegro’s most visited coastal destination, attracting tourists from across Europe. In 2024, the city recorded a 33.3% increase in overnight stays compared to the previous year (source).

This trend is expected to continue, ensuring high occupancy rates for short-term rental properties. Investors can benefit from steady rental income, particularly in peak travel seasons.

2. Property Prices Still Offer Growth Potential

While Budva’s real estate prices have increased over the past few years, they remain competitive compared to other Mediterranean destinations.

As Montenegro’s economy continues to grow and infrastructure projects develop, property values are expected to rise. Investing in 2025 means securing properties before further price hikes.

3. Attractive Tax Benefits for Foreign Investors

Montenegro has some of the lowest property tax rates in Europe. The annual property tax ranges from 0.1% to 1%, depending on the property’s location and classification. Additionally, there are no restrictions on foreign ownership, making it an investor-friendly destination.

Wondering whether Budva is the right investment choice? Our Budva vs. Kotor: Real Estate Market Breakdown has all the answers.

Where to Invest in Budva Real Estate in 2025

1. Old Town Budva – Heritage & Premium Returns

The historic Old Town remains one of Budva’s most desirable locations. The charm of centuries-old architecture, cobblestone streets, and luxury boutiques makes it a hotspot for high-end real estate. Properties here are perfect for:

• Luxury short-term rentals with premium pricing.

• Renovation projects that increase property value.

• Exclusive boutique hotels targeting high-end tourists.

2. Becici – Best for Beachfront Apartments

Becici, just a few kilometers from Budva’s center, is known for its stunning sandy beaches and resort-style living. It’s ideal for investors looking for:

• High-yield holiday rentals with strong summer demand.

• New developments offering modern amenities.

• Family-friendly properties attracting long-term tenants.

3. Rafailovici – Growing in Popularity

Once a small fishing village, Rafailovici is now a rapidly growing investment area. The proximity to Becici Beach and luxury developments make it an attractive option for:

• Affordable beachfront properties with appreciation potential.

• Short-term rental apartments benefiting from tourism spillover.

• New-build projects offering modern facilities.

4. Petrovac – Quiet & Emerging Market

For investors seeking a quieter alternative to Budva, Petrovac provides a growing real estate market with lower entry prices. This area is excellent for:

• Long-term rentals catering to retirees and expats.

• Second-home buyers looking for peaceful surroundings.

• Development projects benefiting from Budva’s market spillover.

Essential Tips for Investing in Budva Real Estate

1. Work with Local Experts

Navigating Montenegro’s real estate market requires local knowledge. Hiring a real estate agent and legal advisor ensures a smooth purchase process and compliance with property laws.

2. Consider Property Management Services

If investing in short-term rentals, property management services can help handle guest check-ins, maintenance, and marketing, maximizing your rental income.

3. Research Market Trends & Future Developments

Budva’s property market is influenced by infrastructure projects and tourism trends. Keeping up with new developments—such as planned marinas, luxury resorts, and transport improvements—can help investors make informed decisions.

Final Thoughts

Budva remains a top real estate investment destination due to its growing tourism industry, competitive property prices, and investor-friendly policies.

Whether you’re interested in historic properties in the Old Town, beachfront apartments in Becici, or emerging opportunities in Rafailovici and Petrovac, Budva offers excellent potential for high returns.

As the market continues to evolve, staying informed and working with local professionals will be key to making a successful investment in 2025.

If you're considering buying property in Budva, working with experienced real estate professionals can help you find the best opportunities.

‍