Kotor Economic Profile 2026
Key macroeconomic and demographic indicators
Population
22,600
Montenegro Statistical Office, Census 2023
Average gross salary
€1,219
▲ 6% YoY
Ø Jan–Feb '26
Tourist overnights Jan–Feb
~4,608
6.2% of coastal share
Kotor Apartment Prices by Type — Q1 2026
Average for Q1 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 | 3,330 €/m² | 114,079 € | -4.0% | 46 |
| one-bedroom apartments | 3,726 €/m² | 196,397 € | +14.6% | 289 |
| two-bedroom apartments | 3,855 €/m² | 292,531 € | +37.3% | 300 |
| three-bedroom apartments | 3,443 €/m² | 447,892 € | -13.0% | 141 |
Note: Average prices are calculated based on the median asking prices from 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 11.7% over the last 12 months (from 3,226 €/m² to 3,605 €/m²).
| Period | Avg price/m² | Quarterly change | YoY change |
|---|---|---|---|
| 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: 3,852 €/m²
YoY change: +14.9%
Active listings: 204
Radanovići Rising
Per m²: 2,491 €/m²
YoY change: +11.3%
Active listings: 91
Risan —
Per m²: 3,694 €/m²
YoY change: —
Active listings: 65
Prčanj Rising
Per m²: 3,522 €/m²
YoY change: +16.9%
Active listings: 55
Kavač Rising
Per m²: 3,426 €/m²
YoY change: +17.2%
Active listings: 46
Orahovac —
Per m²: 4,055 €/m²
YoY change: —
Active listings: 39
Škaljari —
Per m²: 3,412 €/m²
YoY change: —
Active listings: 34
Muo —
Per m²: 3,678 €/m²
YoY change: —
Active listings: 33
Kotor Investment Potential & Rental ROI
ROI analysis and investment opportunities
Rental yield by municipality / neighbourhood
| Municipality | Avg price/m2 | Avg rent | Avg size | Gross yield |
|---|---|---|---|---|
| Dobrota | 3,852 € | 811 € | 85 m² | 3.0% |
| Radanovići | 2,491 € | 593 € | 50 m² | 5.7% |
| Risan | 3,694 € | — | 91 m² | — |
| Prčanj | 3,522 € | — | 63 m² | — |
| Kavač | 3,426 € | 591 € | 57 m² | 3.6% |
| Orahovac | 4,055 € | — | 65 m² | — |
Investment Example Calculation
Average apartment of 77m² in Kotor — based on current market data.
Purchase price
277,585 €
77m² x 3,605 €
Annual rental income
12,012 €
gross income
Gross yield
4.3%
annually
5-year projection
356,000 €
with 7% 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
Low
~115salaries for a 50m² apartment
🔴 A 50m² apartment costs ~115 average gross salaries. Kotor is an investment market with strong tourist demand.
Gross Salary Trend (€)
Quarterly overview — Kotor
📎 Montenegro Statistical Office — MSP 3/2026 (Jan–Feb 2026)
Ø salary Jan–Feb '26
€1,219
Annual change
+6%
Average gross salary in Kotor shows 6.0% annual growth (Ø Jan–Feb '26 vs. Q1 '25): Jan €1,216, Feb €1,221.
Gross Salary — Kotor 2026
| Period | Salary | Source |
|---|---|---|
| January '26 | €1,216 | 📎 |
| February '26 | €1,221 | 📎 |
| Q1 '26 avg | €1,219 | 📊 |
📎 Montenegro Statistical Office data · 📊 Prediction based on official data for January and February, based on historical earnings trends.
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 continued moderate price growth in Kotor real estate during 2026. Average asking price: <strong class="text-gray-700">3,605 €/m²</strong>, with variations by location and property type.
Key Factors Affecting the Kotor Market
UNESCO status ↑ Positive
Kotor's Old Town has been a UNESCO World Heritage Site since 1979 — ensuring lasting tourist appeal and protecting property values.
UNESCO World Heritage Register
Cruise tourism ↑ Positive
Kotor is one of the most popular cruise destinations in the Mediterranean, with constant tourist flow and growing demand for accommodation.
Port Authority of Kotor
Proximity to Tivat ↑ Positive
Kotor is only 10 minutes from Tivat and Porto Montenegro, increasing its appeal for buyers wanting a cultural setting near the marina.
Geographic advantage
Limited construction ↑ Positive
UNESCO regulations restrict new construction in the Old Town, sustaining high prices for existing properties.
Kotor Municipality Urban Plan
Price Projections for 2026
Starting price: 3,605 €/m² (Q1 2026, average). Projections based on historical trend and Montenegro Statistical Office indicators.
| Scenario | Expected annual growth | Avg price/m² end of 2026 | Probability |
|---|---|---|---|
| Optimistic | +8-10% | 3,929 €/m² | 25% |
| Base BASE | +5-7% | 3,821 €/m² | 55% |
| Conservative | +2-4% | 3,713 €/m² | 20% |
Disclaimer: Based on official Montenegro Statistical Office data (Monthly Statistical Review 3/2026). 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 898 active listings, the average price for an apartment in the city of Kotor is 3,605 €/m².
Analyzing data from the last 3 years, property prices in the city of Kotor show steady growth of 11.8% 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 738 €. The estimated average annual gross return on investment (ROI) is 3.1%, excluding property value appreciation.
Prosječna cijena stana u Kotoru u februaru 2026. iznosi oko 2.800 EUR/m², dok kuće u prosjeku koštaju oko 2.300 EUR/m². Cijene variraju značajno — Stari Grad bilježi i do 7.500 EUR/m² (UNESCO zona), dok Risan nudi pristupačnije cijene od 1.600 EUR/m².
Cijene nekretnina u Kotoru bilježe stabilan rast od 7,3% na godišnjem nivou (Q1 2026). UNESCO status Starog Grada, blizina Tivta i Porto Montenegra, te rastuća potražnja međunarodnih kupaca podržavaju kontinuirani rast cijena.
Stari Grad Kotor nudi najviši ROI za kratkoročno iznajmljivanje (7-10%) zahvaljujući UNESCO statusu i turističkoj atraktivnosti. Dobrota i Muo nude odličan balans između cijene i kvaliteta života uz more. Risan je najisplativija opcija za dugoročnu investiciju.
Da, stranci mogu kupiti nekretninu u Crnoj Gori sa istim pravima kao i državljani. Potrebno je pribaviti evidencioni broj stranca u Poreskoj upravi. Procedura se obično završi u roku od 30-60 dana.
Prosječan bruto prinos od najma u Kotoru kreće se od 5% do 10% godišnje. Stari Grad i Perast su naročito atraktivni za kratkoročni turistički najam, sa dnevnim cijenama od 100-300 EUR u sezoni (jun-septembar).
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 the median asking price and may differ from final transaction prices. The report is automatically updated at the beginning of each quarter.
Last updated: Q1 2026 | Next update: July 2026
Last updated: Q1 2026 | Next update: July 2026