Buying a property in Montenegro is becoming an increasingly popular choice among investors and people looking for their dream holiday home. The country offers both beautiful coastal locations and quiet mountain areas, which makes potential buyers face a decision: is it better to buy a house or an apartment? Each of these options has its own advantages and disadvantages, which are worth considering carefully before making a final decision. In this article, we will examine the key differences between buying a house and an apartment in Montenegro, taking into account aspects such as costs, lifestyle, potential return on investment, and property maintenance requirements.
Costs of buying real estate in Montenegro: House and apartment
One of the most important factors when deciding to buy a property is the price. In Montenegro, both houses and apartments offer a wide range of prices, which depends on the location, standard of finishing and many other factors.
Apartment prices
Apartments in Montenegro are usually cheaper compared to houses, especially in city centers. The average price of an apartment in popular locations such as Budva or Kotor is around EUR 1,500-3,000 per square meter. Prices may be higher for new developments with sea views or in luxury apartment buildings, but for many people, an apartment is a more affordable option. Smaller apartments, especially outside tourist centers, can be very affordable, making them ideal for those looking for a second home or investment for rent.
House prices
Buying a home, on the other hand, comes at a higher cost, especially in popular coastal regions. Houses located in places such as Tivat, Herceg Novi or near the luxurious marina Porto Montenegro can cost up to 300,000 EUR and more. In the case of houses, the price per square meter is often lower than in apartments, but the total cost of purchase is usually higher due to the larger area of the property.
Additional costs
You should also take into account the additional costs associated with the purchase. In the case of homes, this may include land fees, notary fees, taxes, as well as expenses for renovations or garden maintenance. Housing usually has a lower cost of living, although there may be additional fees, such as the cost of managing a housing community.
Taxes and legal fees
In Montenegro, the tax on the purchase of real estate is 3% of the property value, which should be included in the budget. In addition, when buying a property, it is advisable to consult with a local lawyer to ensure that all formalities are handled correctly. Legal costs can vary depending on the value of the property and the scope of services.
In short, apartments tend to be cheaper to purchase and require less money to maintain, while homes offer more space and privacy but come with higher costs for both purchase and maintenance.
Lifestyle: House or apartment?
The choice between a house and an apartment does not only come down to costs, but also to lifestyle preferences. Each of these options offers different experiences of space, privacy, and everyday comforts that can affect the comfort of living in Montenegro.
Home – more space and privacy
For many people, home is a symbol of more space and freedom. Having your own garden, terrace or even swimming pool is a luxury that you cannot always afford in an apartment. Houses, especially those located outside the city, offer peace and quiet, which is perfect for those looking for seclusion, a space for outdoor recreation, or a place to pursue their hobbies such as gardening.
In addition, homes give a greater sense of privacy, which is crucial for people who value peace and the ability to escape from their neighbors. You don’t have to worry about shared walls, noise or restrictions imposed by housing communities, which makes living at home more independent.
Apartment – comfort and life in the center
An apartment, on the other hand, offers other benefits, especially if it is located in the city center. Residents can enjoy the proximity of shops, restaurants, cafes and other services that are easily accessible within walking distance. Apartments are often located in well-connected places, which is important for people who do not want to rely on a car for their daily lives.
The lifestyle associated with living in an apartment building can be more organized and less demanding in terms of property maintenance responsibilities. The lack of a garden means less work related to maintaining greenery, and the management of common infrastructure, such as cleaning the building or repairs, often rests with the housing community.
A house for families, an apartment for singles and couples?
Homes are often a better choice for families who need more space, both indoors and outdoors. A larger number of rooms, the possibility of having a garden for children or pets are factors that prompt families to choose houses. Apartments, on the other hand, can be an ideal solution for singles, couples or people who appreciate a minimalist lifestyle and want to be close to city life.
Safety and neighborhood
Apartments in apartment buildings often offer additional security measures, such as monitoring, security or controlled access to the building. On the other hand, in homes, especially those located on the outskirts of cities, security can be a challenge, which may require the installation of additional protection systems.
The choice between a house and an apartment largely depends on individual preferences and lifestyle. Those looking for space and privacy may be more interested in buying a home, while those who value convenience and living in the center of action may prefer an apartment.
Return on Investment in Montenegro: Potential Rewards and Risks
When buying a property in Montenegro, an important aspect to look at is the potential return on investment. Depending on the type of property you choose, the real estate market can offer different investment benefits, but also involve different levels of risk.
Investments in houses – greater potential for value growth
Houses, especially those located in more prestigious locations, may have a higher potential for value growth in the long run. In popular regions such as the Adriatic coast, house prices can rise, especially if there are plans to develop tourist infrastructure or introduce new amenities such as marinas, golf courses, or leisure resorts.
Homes also offer more flexibility in terms of renting. Year-round rental, seasonal rental for tourists, or long-term rental for local residents – any of these options can be profitable, especially in regions with high tourist interest. Larger homes can also bring in higher incomes, especially if they offer additional amenities such as a swimming pool, garden, or proximity to tourist attractions.
Investing in housing – stability at lower costs
Apartments, although often less expensive at the purchase stage, can offer a stable return on investment, especially in cities and tourist resorts. Short-term rentals in popular coastal cities such as Budva, Kotor or Tivat are very popular among tourists, which translates into a steady income in the summer season.
The cost of maintaining apartments is also lower, which means that owners can count on a more stable return with less financial outlay. The fees associated with property management are often lower than the cost of maintaining a home, making housing investments attractive to those looking for passive rental income.
Risks related to real estate
Like any investment, both houses and apartments carry risk. In the case of homes, there may be more costs associated with renovations, especially if the house is older or needs to be upgraded. Additionally, homes may be more exposed to volatile market conditions – property prices may rise or fall depending on the local market situation.
Apartments, while typically more stable in terms of return on investment, may be more susceptible to seasonal fluctuations. Short-term rentals in tourist locations are associated with a seasonal dependency, which means that it can be difficult to maintain full occupancy during some months.
The decision to choose between a house and an apartment as an investment depends on individual preferences and investment strategy. Homes may offer greater potential for value growth and rental flexibility, but they come with higher costs and risks. Apartments, on the other hand, offer a stable income with a lower cost of living, which can be an ideal solution for those looking for a more predictable investment.
Maintenance and responsibilities of the owner
Property maintenance is another important factor to consider when choosing between a house and an apartment. Each type of property comes with different responsibilities and maintenance costs that can significantly affect the day-to-day management and total cost of ownership of the property.
Maintaining a home – more space, more responsibilities
Houses, especially those with a larger area, require more work and financial outlays for maintenance. First of all, the homeowner must take care of the maintenance of the building, the garden, the heating and cooling systems, as well as all renovations and repairs on their own. The costs may vary, depending on the technical condition of the house, its size and age.
A house with a garden requires additional effort and costs related to the maintenance of green areas, such as mowing the grass, caring for plants or cleaning the terrace. If the house is located in a remote location, it may also require more expenditure on securing the property and maintaining infrastructure, such as access roads.
Maintaining an apartment – lower costs, shared responsibility
Apartments, especially those located in apartment buildings, have a much lower cost of living compared to houses. The owner of the apartment does not have to worry about roof repairs, façade maintenance or taking care of the garden. In the case of multi-family buildings, the housing community is responsible for maintaining common areas, such as staircases, elevators, parking lots or gardens.
In exchange for these services, apartment owners must pay monthly contributions to the renovation fund and fees related to property management. The amount of these fees depends on the standard of the building and the number of amenities offered, such as security, swimming pool, gym or parking. Still, these costs are usually predictable and lower than maintaining a home.
Repairs and modernizations
Homes require more frequent repairs and upgrades, especially older buildings that may have problems with electrical, plumbing, and insulation. The homeowner has to plan and pay for all the work related to the modernization of the property on their own, which can generate additional costs and require more time.
In the case of apartments, repairs inside the premises, such as painting the walls or replacing the floors, are of course the owner’s responsibility. However, larger repairs, such as those related to the roof or façade, are usually spread over all apartment owners, which makes the costs less financially burdensome.
Property management
In the case of houses, the owners are completely responsible for managing the property, which includes both maintenance and all formalities such as utility fees, insurance or taxes. Apartments, on the other hand, are managed by housing associations or management companies that deal with technical and administrative matters, which means fewer obligations for the owner.
In conclusion, apartments offer fewer property maintenance worries and predictable costs, making them a more convenient solution for people who don’t want to spend a lot of time and money on maintenance. Homes, on the other hand, provide more independence, but require more commitment and financial resources for maintenance.
Who is a house for, and who is an apartment for?
The choice between a house and an apartment depends on many individual factors, such as lifestyle, budget, family needs, and investment goals. Both houses and apartments offer different benefits, so it is worth considering which option best suits your expectations.
When is it worth choosing a house?
The house is an ideal choice for people who value space, privacy and independence. The larger area and the possibility of having your own garden, terrace or swimming pool make the houses attractive for families with children who need more space to live. Homes can also be a great choice for people who have an active lifestyle, love the outdoors, and have a passion for gardening or other activities that require open space.
In addition, homes are a better option for those looking for a place for a long-term stay, where they can enjoy peace, quiet and contact with nature, especially if they are located outside of large cities. For people who are planning a long-term investment and expect an increase in the value of the property, houses in prestigious locations may offer more potential for value appreciation than apartments.
When is it worth choosing an apartment?
An apartment is an ideal option for those with a more dynamic, urban lifestyle who appreciate the proximity of amenities such as shops, restaurants, cafes and public transport. Apartments in city centres, especially in touristic locations like Budva or Kotor, are ideal for people who want to be in the centre of events and enjoy urban life.
Apartments are also a convenient solution for singles, couples and the elderly who do not need a lot of space and do not want to maintain a garden or a larger house. The cost of maintaining an apartment is typically lower, and the responsibility for maintaining the building is shared with other residents, making this option less demanding in terms of time and finances.
For those looking for short-term investments, apartments offer a stable rental income, especially in popular tourist locations. Short-term rental of apartments is often more profitable, especially during the holiday season, which makes apartments an attractive solution for investors interested in the rental market.
The choice depends on priorities
The final choice between a house and an apartment depends on individual needs and priorities. If you want space, privacy, and a long-term investment, a home may be the best choice for you. On the other hand, if you are looking for comfort, living in the city center and stable rental income, an apartment may be more suitable.
The decision to buy a property in Montenegro – a house or an apartment – depends on many factors, including lifestyle, investment expectations, and budget. Homes offer more space, privacy, and greater potential for value growth, but they come with higher maintenance costs and more responsibilities. Housing, on the other hand, provides comfort, lower maintenance costs and stable rental income, especially in city centers. The choice between a house and an apartment depends on your priorities – whether you want space and independence or a comfortable, urban lifestyle with minimal responsibilities.
