Budva real estate market shifts as foreign owners sell properties

The real estate market in Budva, Montenegro, is experiencing a significant shift as foreign property owners increase the supply of both sale and rental units. This trend is primarily driven by Turkish and Russian citizens liquidating their assets due to rising living costs, administrative hurdles, and uncertainties regarding visa policies.

Increased housing supply has led to a noticeable drop in rental prices. Monthly rents for one-bedroom apartments, which previously ranged between 600 and 700 euros, have fallen to the 400 to 500 euro range, representing a decrease of up to 200 euros.

According to real estate consultant Tomislav Rankovic, approximately 15 percent of the Turkish population in the Budva region has left Montenegro. The exodus is attributed to changing legal requirements and the potential removal of visa exemptions. Additionally, Russian citizens residing in the country since 2022 face difficulties with international banking transfers, residence permit extensions, and visa processes due to international sanctions. Some investors are returning to their home countries, while others are seeking lower-cost alternatives.