MONTENEGRO Law and Practice Contributed by: Milan Keker, Aleksandra Bujkovic, Ivan Pejovic and Iva Rolovic, Keker, Bujkovic & Pejovic
Keker, Bujkovic & Pejovic (KBP Legal) Bulevar Svetog Petra Cetinjskog 149/V/33 Podgorica Montenegro Tel: +382 20 256 493
Email: info@kbplegal.me Web: www.kbplegal.me
1. General 1.1 Main Sources of Law Property rights are protected by the Constitution and regulated by the following key laws: • the Law on Property Relations; • the Law on State Survey and Real Estate Cadastre; • the Law on Obligations; • the Law on Spatial Planning; • the Law on Construction of Structures; and • the Law on the Legalisation of Illegally Constructed Structures.
interest rates in the euro area. In addition, Montene - gro’s entry into the SEPA payment system in October 2025 has simplified cross-border euro payments and improved transaction efficiency for EU-based inves - tors. Investor interest continues to focus on tourism-linked residential developments and branded real estate projects along the coast. Major developments remain concentrated around established luxury destinations such as Porto Montenegro and Luštica Bay, as well as emerging mountain tourism hubs such as Kolašin. A notable milestone during the period was the opening of the SIRO Boka Place hotel in Porto Montenegro in May 2025, the first European property of Kerzner International’s SIRO wellness brand. Montenegro’s hospitality pipeline continues to expand with addi - tional international brands entering the market, includ - ing the Mövenpick Hotel & Residences Teuta Kotor Bay, expected to open in 2026, and the Crowne Plaza Kolašin project scheduled for completion in 2026. These developments, together with newly announced tourism-residential projects such as the Porta Rai Beachfront Hotel & Residences in Ulcinj, reflect con - tinued investor focus on luxury tourism, branded resi - dences and integrated resort developments. Another important structural development is the stra - tegic partnership framework between Montenegro and the United Arab Emirates adopted in 2025, which aims to facilitate large-scale tourism and real estate projects, particularly along the coast and in mountain resort areas. While the full pipeline of projects is still developing, the agreement signals the government’s intention to attract significant international investment into resort and mixed-use developments.
Sector-specific laws include: • the Law on Social Housing; • the Law on State Property; • the Law on Agricultural Land; • the Law on Forests; • the Law on Nature Protection; and • the Law on Waters. 1.2 Main Market Trends and Deals
Over the past 12 months, Montenegro’s real estate market has remained dynamic, with continued price growth and strong interest from foreign buyers, par - ticularly in coastal areas and Podgorica. Residential prices have continued to rise, with the average price of newly built apartments exceeding EUR2,200 per sq m in 2025, with significantly higher prices in prime coastal locations. Demand remains largely driven by international buyers and cash transactions, which has helped the market remain relatively resilient despite inflation and higher
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