Kotor Economic Profile 2026
Key macroeconomic and demographic indicators
Population
22,600
Montenegro Statistical Office, Census 2023
Average gross salary
€1,246
▲ 6.6% YoY
Ø Q2 '26 (Jun est.)
Tourist overnights Q2 '26
69,387
5.7% of coastal share
Kotor Apartment Prices by Type — Q2 2026
Average for Q2 2026
Below are the average apartment prices in Kotor by type, based on active listings on Estitor.
| Property type | Avg price/m2 | Avg total price | Annual trend | Listings |
|---|---|---|---|---|
| studios | 3,031 €/m² | 90,352 € | +2.4% | 59 |
| one-bedroom apartments | 3,669 €/m² | 190,288 € | +8.2% | 360 |
| two-bedroom apartments | 4,047 €/m² | 308,620 € | +25.8% | 352 |
| three-bedroom apartments | 3,462 €/m² | 409,890 € | +6.6% | 171 |
📎 Listings = ads included in the average-price calculation; the sum may differ from total active listings.
Note: Average prices are calculated based on the prices of active listings on the Estitor platform and do not include negotiation discounts, which average 5-10%.
Kotor Property Price History
Avg price/m² trend for apartments
Avg price/m² apartments in Kotor (EUR)
Quarterly Price Change Trend in Kotor:
Price per m² in Kotor has increased by 14.9% over the last 12 months (from 3,222 €/m² to 3,701 €/m²).
| Period | Avg price/m² | Quarterly change | YoY change |
|---|---|---|---|
| Q2 2026 | 3,701 € | +2.7% | +14.9% |
| Q1 2026 | 3,605 € | +2.3% | +11.8% |
| Q4 2025 | 3,525 € | +8.2% | — |
| Q3 2025 | 3,258 € | +1.1% | — |
| Q2 2025 | 3,222 € | -0.1% | — |
| Q1 2025 | 3,226 € | — | — |
Kotor Neighborhood & Location Analysis
Prices and trends by location
Kotorska rivijera obuhvata nekoliko distinktivnih zona — od UNESCO-zaštićenog Starog Grada do mirnih priobalnih naselja poput Dobrote i Prčanja. Svaka lokacija nosi posebnu cijenu i profil kupca.
Dobrota Rising
Per m²: 4,042 €/m²
YoY change: +22.1%
Active listings: 265
Radanovići Rising
Per m²: 2,630 €/m²
YoY change: +13.0%
Active listings: 123
Risan Rising
Per m²: 3,652 €/m²
YoY change: +16.3%
Active listings: 75
Kavač Rising
Per m²: 3,364 €/m²
YoY change: +28.5%
Active listings: 59
Orahovac Rising
Per m²: 3,765 €/m²
YoY change: +6.8%
Active listings: 47
Prčanj Rising
Per m²: 3,648 €/m²
YoY change: +6.2%
Active listings: 45
Škaljari Rising
Per m²: 3,501 €/m²
YoY change: +11.9%
Active listings: 39
Muo Stable
Per m²: 4,113 €/m²
YoY change: +2.1%
Active listings: 31
Morinj Declining
Per m²: 2,938 €/m²
YoY change: -29.9%
Active listings: 30
Kostanjica Rising
Per m²: 4,000 €/m²
YoY change: +6.1%
Active listings: 29
Lastva Grbaljska Rising
Per m²: 2,595 €/m²
YoY change: +15.1%
Active listings: 27
Stari Grad Kotor —
Per m²: 5,226 €/m²
YoY change: —
Active listings: 22
📎 Listings = ads included in the average-price calculation; the sum may differ from total active listings.
Kotor Investment Potential & Rental ROI
ROI analysis and investment opportunities
Rental yield by municipality / neighbourhood
| Municipality | Avg price/m2 | Avg rent/m² | Avg size | Gross yield |
|---|---|---|---|---|
| Dobrota | 4,042 € | 15 € | 71 m² | 4.5% |
| Radanovići | 2,630 € | 10 € | 52 m² | 4.6% |
| Risan | 3,652 € | 14 € | 73 m² | 4.6% |
| Kavač | 3,364 € | 12 € | 42 m² | 4.3% |
| Škaljari | 3,501 € | 14 € | 42 m² | 4.8% |
| Lastva Grbaljska | 2,595 € | 9 € | 58 m² | 4.2% |
| Stari Grad Kotor | 5,226 € | 17 € | 59 m² | 3.9% |
Investment Example Calculation
Average apartment of 68m² in Kotor — based on current market data.
Purchase price
251,668 €
68m² x 3,701 €
Annual rental income
10,608 €
gross income
Gross yield
4.2%
annually
5-year projection
449,497 €
with 12.3% annual growth
Disclaimer: These projections are based on historical trends and do not guarantee future results.
Purchase Costs in Kotor
| 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 |
🎯
Purchasing power and apartment prices
Can local salaries keep up with apartment prices?
Affordability Index
How far does a local salary go toward buying an apartment
Very low
~197salaries for a 68m² apartment
🔴 A coastal investment market — prices significantly exceed local purchasing power.
Gross Salary Trend (€)
Quarterly overview — Kotor
📎 Montenegro Statistical Office — MSP 6/2026 (Apr–May 2026)
Ø salary Q2 '26
€1,246
Annual change
+6.6%
Average gross salary (Kotor) is €1,246 (Ø Q2 '26), 6.6% growth (Apr+May vs 2025). April: €1,237, May: €1,242, June (est.): €1,258.
Gross Salary — Kotor 2026
| Period | Salary | Source |
|---|---|---|
| April '26 | €1,237 | 📎 |
| May '26 | €1,242 | 📎 |
| June '26 * | €1,258 | est. |
| Q2 '26 avg | €1,246 | 📊 |
📎 Montenegro Statistical Office data. Q2 Ø = Apr & May actual + Jun estimate (Jun '25 × Apr+May YoY).
Kotor Property Buying Guide
Step-by-step process for domestic and foreign buyers
Purchase Process
- 1 Property search & selection — Browse listings via agencies and platforms, analyse location and prices, schedule viewings.
- 2 Negotiation & offer — Agree on price, timeline and conditions with the seller.
- 3 Legal check (due diligence) — Verify ownership at the land registry, any liens or mortgages, building and occupancy permits, and potential legal restrictions or disputes.
- 4 Preliminary contract (optional) — Sign a preliminary contract with a deposit (typically ~10%) while final checks are completed.
- 5 Foreign buyer registration number — Foreign buyers must obtain a registration number from the Tax Authority, required for the transaction and tax obligations.
- 6 Notarisation of the purchase agreement — The contract is signed before a notary. For foreign nationals who do not speak the official language, a licensed court interpreter is legally required.
- 7 Payment & land registry — Payment is made exclusively via bank transfer, after which the notary submits the title registration request.
Required Documentation
- Identity document (ID card or passport)
- Registration number (for foreign buyers)
- Proof of address (if required)
- Proof of source of funds (required by the bank for the transaction)
- Property sheet (land registry extract)
- Building and occupancy permit (if applicable)
- Energy certificate (if available)
- Marriage certificate (if applicable, with translation)
- Power of attorney (if one party is not present)
- Court interpreter (for foreign buyers)
- Confirmation of local bank account (from which the transfer is made)
Important notes:
- Payment is made via bank transfer, with mandatory proof of source of funds in line with anti-money laundering regulations.
- Foreign buyers can freely purchase property, except for certain categories of land (e.g. agricultural land).
- The notary plays a key role in validating the transaction and initiating the registration process.
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.
Kotor Real Estate Forecast 2026
What to expect in the real estate market
Based on current trends, macroeconomic indicators and development plans, we expect moderate price growth in Kotor real estate during 2026. Average asking price: <strong class="text-gray-700">3,701 €/m²</strong>, with variations by location and property type.
Key Factors Affecting the Kotor Market — Backed by Data
UNESCO status ↑ Positive
Kotor's Old Town has been a UNESCO World Heritage Site since 1979 — ensuring lasting tourist appeal and limiting new construction, protecting property values.
UNESCO World Heritage Register
Fastest salary growth ↑ Positive
Average gross salary €1,246 with the fastest growth among cities (+6.6% YoY), strengthening local purchasing power.
MSR 6/2026
Cruise & cultural tourism ↑ Positive
Kotor is one of the leading Adriatic cruise destinations; 69,387 coastal overnight stays (5.7% share, Q2 '26) with constant accommodation demand.
MSR 6/2026
Proximity to Tivat & Porto Montenegro ↑ Positive
Only 10 minutes from Tivat and Porto Montenegro, attracting buyers who want a cultural setting near the luxury marina hub.
Geographic advantage
Price Projections for 2026
Starting price: 3,701 €/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 | +16-18% | 4,330 €/m² | 25% |
| Base BASE | +11-13% | 4,145 €/m² | 55% |
| Conservative | +6-8% | 3,960 €/m² | 20% |
Disclaimer: Based on official Montenegro Statistical Office data (Monthly Statistical Review 6/2026). They do not constitute financial advice and do not guarantee future results. Actual price growth depends on global macroeconomic conditions, geopolitical situation and local regulatory changes.
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Frequently Asked Questions
Frequently asked questions about real estate in Kotor
Based on analysis of 1070 active listings, the average price for an apartment in the city of Kotor is 3,701 €/m².
Analyzing current market data, property prices in the city of Kotor show steady growth of 14.8% 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 884 €. The estimated average annual gross return on investment (ROI) is 4.2%, excluding property value appreciation.
According to Estitor data for Q2 2026 (incl. June est.), the average apartment price in Kotor is about 3,701 €/m². Prices vary by location — Stari Grad Kotor records the highest prices (~5,226 €/m²), while Lastva Grbaljska offers more affordable options (~2,595 €/m²).
Prices in Kotor show strong growth through 2026. The UNESCO status of the Old Town, proximity to Tivat and Porto Montenegro, and rising international demand support continued growth; Kotor also recorded the fastest average salary growth on the coast (+6.6%, Q2 '26).
The highest gross rental yield is currently recorded in Škaljari (~4.8%), 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 Kotor is approximately 4.2% per year, based on the ratio of average rent to sale price. A detailed yield-by-neighborhood breakdown is shown in the rental-yield table above.
Methodology: Data in this report is based on analysis of active and sold listings on the Estitor platform, publicly available data from the Real Estate Directorate of Montenegro, and aggregated data from partner agencies. Prices represent asking prices from active listings and may differ from final transaction prices. The report is automatically updated at the beginning of each quarter.
Last updated: Q2 2026 | Next update: October 2026
Last updated: Q2 2026 | Next update: October 2026