Herceg Novi Investment Property ListingsCoastline of bays, mountains andEU-focused demand

Real estate in Herceg Novi, Montenegro: spa heritage and affordable Adriatic investment

Why invest in property in Herceg Novi

Herceg Novi, located at the entrance to the Bay of Kotor, is a charming coastal town known for its spa heritage, green hillsides, and long seaside promenade. Unlike glitzier hubs like Tivat or Budva, Herceg Novi offers a more relaxed, nature-oriented lifestyle with significantly more affordable property prices. It appeals to retirees, second-home buyers, and investors targeting value and medium-term growth.

With proximity to Dubrovnik, a historic old town, and new development in areas like Djenovici and Kumbor, Herceg Novi is gaining momentum — especially thanks to the upscale Portonovi resort, which raised the area’s profile among high-end buyers.

Types of real estate available

Herceg Novi’s property market includes both budget-friendly assets and luxury seafront projects:

• Affordable apartments in the town center or Igalo — suitable for long-term rental or retirement use.
• Renovated stone houses in the Old Town — popular for boutique rentals or personal use.
• Villas and townhouses along the promenade — including new builds in Savina and Kumbor.
• Portonovi branded residences — fully serviced, ultra-luxury apartments with marina access.
• Land plots in the hills — available for custom builds, especially in areas like Sasovići or Bijela.

This diversity allows for flexible strategies, including lifestyle investment, buy-to-let, and long-term development.

Foreign ownership and legal aspects

Montenegro maintains a liberal legal regime for property ownership, with clear rules for foreign buyers:

• Freehold ownership available to all foreigners without restrictions
• No permits required for non-citizens to purchase land or property
• Property purchase can lead to residency and future citizenship options
• Notary-controlled transactions ensure legal certainty and title security

VelesClub Int. provides full legal support, from due diligence to contract signing and registration in the national cadastre.

Property prices and rental yields

Herceg Novi is more affordable than Tivat and Budva, while offering strong tourism appeal. As of 2025:

• Standard apartments: €1,500–€2,800/m² depending on age and location
• Seafront villas: €3,000–€5,500/m², especially in Savina or around Portonovi
• Old Town properties: €2,200–€3,800/m² for historic homes
• Land plots: €70–€250/m² depending on slope, view, and access

Short-term rental yields reach 6%–10% during the summer season, with demand driven by spa tourists, family vacationers, and regional travelers from Serbia, Russia, and Western Europe.

Neighborhoods and lifestyle

Herceg Novi offers a slower pace of life, abundant greenery, and a strong cultural identity. Key areas include:

• Old Town (Stari Grad): Medieval charm, narrow streets, and boutique renovation projects.
• Igalo: Known for its healing mineral springs and medical tourism centers.
• Savina: Upscale residential zone close to the sea and promenade.
• Kumbor and Djenovici: Emerging areas near the Portonovi development — suitable for investment.
• Bijela: Suburban area with land opportunities and peaceful living.

The town offers year-round appeal with mild winters, local festivals, and easy access to Dubrovnik Airport just across the Croatian border.

Who buys real estate in Herceg Novi

Herceg Novi attracts a diverse set of buyers looking for value, wellness, and strategic Adriatic access:

• Middle-class EU buyers acquiring second homes or retirement properties
• Investors seeking short-let returns near Portonovi or Savina
• Golden Visa and citizenship-by-investment applicants using real estate as a route to residency
• Medical tourism entrepreneurs investing in Igalo’s wellness infrastructure
• Developers acquiring land in peripheral villages for future housing or hospitality

The mix of affordability, tranquility, and growing premium zones makes Herceg Novi a layered and resilient market.

How VelesClub Int. helps you

VelesClub Int. provides tailored investment support across Herceg Novi and nearby regions:

• Access to off-market apartments, villas, and Old Town properties
• Legal due diligence, POA transactions, and title clearance
• Project structuring for wellness, rental, or boutique hospitality assets
• Tax planning and residency support for foreign buyers
• Property management, furnishing, and post-purchase services

Whether you're investing in a seafront apartment, launching a boutique spa hotel, or securing a long-term land play, VelesClub Int. ensures your Herceg Novi real estate strategy is professionally executed and built for sustainable returns.