Kotor Real Estate 2026: Prices, Best Areas and How to Buy

TL;DR: Kotor real estate has a middle asking price of about €258,000 for an apartment in 2026, or about €3,600 per m². Homes by the water in Muo, Prčanj and the Old Town cost the most, while Kavač and the Grbalj villages cost the least.

Kotor is an old walled town at the far end of the Bay of Kotor. The whole inner bay is a UNESCO World Heritage Site. After Tivat, it’s where we have the most homes for sale. Right now we have about 100 homes and plots in the Kotor area.

Below, we’ll show you what homes cost, which areas to look at, how to buy, and the big rule change that hit Kotor this year.

How much does Kotor real estate cost in 2026?

A one-bedroom apartment costs about €189,000. A two-bedroom costs about €285,000.

Those are the middle asking prices of the 46 Kotor apartments we have for sale with a price. Half cost less and half cost more.

Houses and land cost more.

How does Kotor compare? Asking prices in Kotor usually run €2,800 to €5,500 per m², and €4,000 to €6,000 with a view. They went up 12% in the year to early 2026. Our apartments sit right in that range, at about €3,600 per m².

Kotor costs a bit less than Tivat. Our Tivat apartments are about €4,000 per m². See our Tivat real estate guide and our guide to Montenegro property prices for more.

Kotor real estate prices by area

In Kotor, being by the water is what you pay for.

Here’s the big picture. The villages on the water cost €4,400 to €4,700 per m². The hills and the Grbalj villages cost €2,800 to €3,300.

Why is Kavač’s middle price so low? Many of our Kavač homes are small studios and one-bedrooms. Per m², it’s still cheaper than the bay.

Some areas have only a few homes, so read those numbers as a guide.

The best areas to buy in Kotor

There’s no one best area. It depends on what you want. Here are six to start with.

Old Town and Škaljari. The Old Town sits inside the walls. Škaljari is just behind it. You can walk to everything. We have a two-bedroom by the Old Town for €262,500 and a small stone house in the Old Town for €315,000.

Dobrota. It runs along the bay north of the Old Town, with old captains’ houses by the water. It has the most homes of any area on our list. We have a one-bedroom in Dobrota for €163,000 and a two-bedroom for €217,000.

Muo and Prčanj. These quiet stone villages sit across the bay from the Old Town. They’re our priciest areas per m². We have a one-bedroom in Muo for €189,000 and a one-bedroom in Prčanj for €250,000.

Stoliv. Further along the same shore, Stoliv has stone houses right on the water. We have a stone house in Stoliv for €790,000.

Kavač. It’s in the hills between Kotor and Tivat. You get newer buildings and lower prices, but you’ll need a car. We have a studio in Kavač for €84,000 and a two-bedroom for €199,500.

Radanovići and the Grbalj villages. These villages sit on the flat land behind the hills, on the way to the Budva coast. They’re our lowest-priced area. We have a one-bedroom in Radanovići from €134,365.

Love old towns? Perast is part of Kotor too. We have a small house in Perast for €420,000. Read more in our Perast real estate guide.

Why do people buy in Kotor?

Three things set Kotor apart.

It’s a UNESCO site. The old town, its walls, Perast and Risan have been a World Heritage Site since 1979. That brings visitors all year, and strict rules on building.

The airport is close. Tivat Airport is about 7 km away.

Homes are scarce. The bay is narrow, with mountains right behind it. There’s not much room to build. And a new law has made building even harder, as we explain below.

What’s changing in Kotor in 2026

This is the big one. In March 2026, a new law put a stop to a lot of building in Kotor. UNESCO had warned Montenegro about too much building around the bay.

Here’s what it does:

• No new buildings in the protected zone. No new building permits will be given there for now.
• No legalisation anywhere in Kotor. Owners of homes built without a permit can’t make them legal for now. That’s true across the whole town and its villages.
• Some work can still go ahead. You can still fix up a home within its current size. Projects that already had a permit before the law can carry on.

How long will it last? Until the state makes two new plans to protect the area. The law gives it 12 months, and UNESCO has to say yes to both.

What does this mean for you?

• Fewer new homes. That can keep prices up.
• Don’t count on adding a floor or a pool. Ask a lawyer before you buy a home you plan to grow.
• Check the papers twice. A home with an add-on built without a permit can’t be made legal right now. Our guide on how to avoid scams when buying property in Montenegro shows what to check.

How to buy a home in Kotor

Buying here takes six steps.

1. Set your budget. Add the tax, the lawyer and the notary to the price of the home.
2. Pick an area and visit. See a few homes in two or three areas before you choose.
3. Sign a first contract. You and the seller agree the price and pay a deposit.
4. Check the papers. Your lawyer checks who owns the home and that it was built with a permit.
5. Sign at the notary. You sign the final contract and pay the rest by bank.
6. Pay the tax and register. Then the home is put in your name.

The tax is the cost most people miss. A home that’s been owned before has a transfer tax of 3% to 6%. The more the home costs, the higher the rate.

A new home from the builder is different. The price has VAT in it, and there’s no transfer tax. See our guide on new build vs resale property in Montenegro.

For the full list of costs, read our guide to the hidden costs of buying property in Montenegro. For each step in detail, read how to buy property in Montenegro.

Rules to know before you buy in Kotor

You can buy if you’re not from Montenegro. You can own a flat, a house or a plot you can build on. You can’t buy farm land in your own name. Read more in can foreigners buy property in Montenegro.

A home can help you stay. Since January 2026, your home must be worth €150,000 or more on the tax office’s books to ask for a permit to live here. Our studios and some one-bedrooms fall under that line.

The home must be legal. And in Kotor, legalisation is on hold for now. So check the permits with care, most of all for older homes.

The strip by the sea isn’t private. Many Kotor homes face the water. But the strip of land right by the sea is public land run by a state firm. Check where the plot ends.

Rules change, and this isn’t legal advice. Use a local lawyer before you sign.

Can you rent out a home in Kotor?

Yes. In our rental listings, a two-bedroom rents for about €950 a month. See our guide to long-term rentals in Kotor.

Let’s do the math on a two-bedroom.

That’s before tax, bills and empty months. Summer lets can pay more, because Kotor is busy with visitors. But the season is short, so don’t count on that all year. For more, see our guides to short-term vs long-term rentals and rental yields by city.

Kotor real estate: FAQs

How much is an apartment in Kotor?

The middle asking price is about €258,000. A one-bedroom is about €189,000 and a two-bedroom is about €285,000.

What’s the price per m² in Kotor?

It’s about €3,600 across our apartments. Homes by the water cost €4,400 to €4,700. The hills and Grbalj cost €2,800 to €3,300.

Which area of Kotor costs the least?

In our listings, it’s Radanovići and Kavač.

Can I build or add on to a home in Kotor?

Not much right now. Since March 2026, new building is on hold in the protected zone, and legalisation is on hold across Kotor. You can still fix up a home within its current size.

Can foreigners buy property in Kotor?

Yes. You can buy a flat, a house or building land in your own name. You can’t buy farm land.

Is Kotor cheaper than Tivat?

Yes, a bit. Our Kotor apartments are about €3,600 per m². Our Tivat apartments are about €4,000.

Key takeaways

• A Kotor apartment has a middle asking price of about €258,000, or about €3,600 per m².
• Muo, Prčanj and the Old Town cost the most. Kavač and Radanovići cost the least.
• Since March 2026, new building is on hold in the protected zone, and legalisation is on hold across Kotor.
• The transfer tax is 3% to 6% on a home that’s been owned before.
• A two-bedroom brings in about 4% a year in long-term rent, before costs.

Want to see homes in Kotor? Look at our apartments for sale in Kotor, our houses for sale in Kotor or send us a message. We’ll set up the visits for you.