Detailed analysis of prices, trends and investment opportunities in the real estate market in Herceg Novi. Data updated quarterly.
Key macroeconomic and demographic indicators
Average for Q2 2026
Below are the average apartment prices in Herceg Novi by type, based on active listings on Estitor.
| Property type | Avg price/m2 | Avg total price | Annual trend | Listings |
|---|---|---|---|---|
| studios | 3,581 €/m² | 119,714 € | +26.8% | 38 |
| one-bedroom apartments | 3,334 €/m² | 166,008 € | +14.7% | 557 |
| two-bedroom apartments | 3,074 €/m² | 232,179 € | +7.6% | 480 |
| three-bedroom apartments | 2,626 €/m² | 320,990 € | -7.5% | 165 |
📎 Listings = ads included in the average-price calculation; the sum may differ from total active listings.
Avg price/m² trend for apartments
Price per m² in Herceg Novi has increased by 10.3% over the last 12 months (from 2,893 €/m² to 3,190 €/m²).
| Period | Avg price/m² | Quarterly change | YoY change |
|---|---|---|---|
| Q2 2026 | 3,190 € | +3.9% | +10.3% |
| Q1 2026 | 3,072 € | +0.7% | +9.2% |
| Q4 2025 | 3,050 € | +4.8% | — |
| Q3 2025 | 2,911 € | +0.6% | — |
| Q2 2025 | 2,893 € | +2.8% | — |
| Q1 2025 | 2,813 € | — | — |
Prices and trends by location
Herceg Novi obuhvata više atraktivnih lokacija, od zdravstveno-turističkog Igala do historijskog centra i mirnih naselja poput Savine i Bijele. Svaka zona ima posebnu dinamiku cijena i ciljnu grupu kupaca.
📎 Listings = ads included in the average-price calculation; the sum may differ from total active listings.
ROI analysis and investment opportunities
| Municipality | Avg price/m2 | Avg rent/m² | Avg size | Gross yield |
|---|---|---|---|---|
| Đenovići | 3,443 € | 11 € | 65 m² | 3.8% |
| Topla | 3,015 € | 10 € | 62 m² | 4.0% |
| Igalo | 3,238 € | 11 € | 66 m² | 4.1% |
| Kumbor | 3,114 € | 13 € | 53 m² | 5.0% |
| Bijela | 2,868 € | 11 € | 57 m² | 4.6% |
| Centar | 3,048 € | 10 € | 70 m² | 3.9% |
| Meljine | 4,173 € | 10 € | 48 m² | 2.9% |
Average apartment of 62m² in Herceg Novi — based on current market data.
| Item | Amount | Note |
|---|---|---|
| Property transfer tax | 3% – 6% | Progressive scale for values above €150,000 |
| VAT (new build) | 21% | Already included in price; 3% transfer tax does not apply |
| Notary fees | ~€400 – €700 | Mandatory, set by notary tariff |
| Land registry fee | €50 – €200 | Administrative fees for title registration |
| Agency commission | 3% – 6% | Not fixed; paid by buyer, seller, or both |
| Legal fees | €500 – €2,000+ | Recommended for legal security |
Can local salaries keep up with apartment prices?
How far does a local salary go toward buying an apartment
Quarterly overview — Herceg Novi
| Period | Salary | Source |
|---|---|---|
| April '26 | €1,142 | 📎 |
| May '26 | €1,158 | 📎 |
| June '26 * | €1,109 | est. |
| Q2 '26 avg | €1,136 | 📊 |
📎 Montenegro Statistical Office data. Q2 Ø = Apr & May actual + Jun estimate (Jun '25 × Apr+May YoY).
Step-by-step process for domestic and foreign buyers
The property purchase process in Montenegro is well-defined and relatively standardised, but requires careful legal verification and compliance with banking and tax procedures, especially for foreign investors.
What to expect in the real estate market
Based on current trends, macroeconomic indicators and development plans, we expect moderate price growth in Herceg Novi real estate during 2026. Average asking price: <strong class="text-gray-700">3,190 €/m²</strong>, with variations by location and property type.
Herceg Novi is the second coastal destination with 290,514 overnight stays (24.1% share, Q2 '26, June estimated), right behind Budva.
MSR 6/2026
Igalo and the "Dr Simo Milošević" Institute extend the season beyond summer (spa and wellness tourism), sustaining accommodation demand.
Dr Simo Milošević Institute, Igalo
A Mediterranean climate, greenery, and proximity to Dubrovnik and the airport attract foreign buyers and retirees.
Geographic & climate advantage
Average gross salary €1,136 (-1.0% YoY) — essentially flat, without growth in local purchasing power.
MSR 6/2026
Starting price: 3,190 €/m² (Q2 2026, average). Projections based on historical trend and Montenegro Statistical Office indicators.
| Scenario | Expected annual growth | Avg price/m² end of 2026 | Probability |
|---|---|---|---|
| Optimistic | +12-14% | 3,605 €/m² | 25% |
| Base BASE | +9-11% | 3,509 €/m² | 55% |
| Conservative | +6-8% | 3,413 €/m² | 20% |
Frequently asked questions about real estate in Herceg Novi
Based on analysis of 1343 active listings, the average price for an apartment in the city of Herceg Novi is 3,190 €/m².
Analyzing current market data, property prices in the city of Herceg Novi show steady growth of 10.3% annually.
Sales velocity: A listing of an apartment stays on the market for 45-60 days before it is removed.
The average monthly rent is 682 €. The estimated average annual gross return on investment (ROI) is 4.1%, excluding property value appreciation.
According to Estitor data for Q2 2026 (incl. June est.), the average apartment price in Herceg Novi is about 3,190 €/m². Prices vary by location — Meljine sees the highest prices (~4,173 €/m²), while Gomila offers more affordable options (~2,089 €/m²).
Prices continue to rise through 2026, supported by strong tourist traffic — Herceg Novi accounts for 24.1% of all coastal overnight stays (Q2 '26, June estimated), second on the coast. A mild climate, health tourism (Igalo) and its position at the entrance to the Bay of Kotor sustain demand.
The highest gross rental yield is currently recorded in Kumbor (~5.0%), based on the displayed rental data. A detailed yield-by-neighborhood breakdown is shown in the rental-yield table above.
Yes, foreigners can buy property in Montenegro with the same rights as citizens. A foreigner's registration number from the Tax Administration is required. The procedure usually takes 30-60 days.
The average gross rental yield in Herceg Novi is approximately 4.1% per year, based on the ratio of average rent to sale price (see the rental-yield table above). Igalo has a particular advantage, as health tourism extends the rental season beyond the summer months.