Buying an Off-Plan Apartment in Montenegro – How to Save Up to 40%

Buying an apartment off-plan in Montenegro is one of the best investment strategies for Polish buyers who want to save up to 40% compared with completed apartments and have first choice of the best locations. Apartments under construction in projects such as Luštica Bay, Portonovi, or developments by reputable developers in Budva give you access to properties that may no longer be available once the project is completed.

This guide shows you how to maximize the advantages of buying directly from a developer and what to look for to ensure that the process is smooth, safe, and profitable. You will learn how to choose the best project, what a secure purchase agreement should look like, and how to minimize risk when structuring the payment schedule.

Why Buy an Apartment During Construction

Montenegro is experiencing a golden period of development — major international projects are building entire districts from the ground up. Prices for apartments under construction start at around €1,800/m² in emerging locations and reach €6,000–8,000/m² in prestigious coastal developments. This is still 30–50% cheaper than comparable properties in Croatia or Greece.

Buying during the construction phase offers three major benefits. The first is the price: typically 25–40% lower than the market price of completed apartments in the same location. In practice, this means that an apartment that will be worth €250,000 once completed could be purchased today for €150,000–180,000.

The second benefit is priority selection — you get access to the best units with ideal sun exposure, sea views, and peaceful surroundings. By the time the project is completed, these apartments have usually already been sold to buyers like you who purchased early.

The third benefit is a payment schedule spread over the 18–36-month construction period. Instead of paying €200,000 all at once, you might pay €60,000 upon signing the agreement, additional installments during construction, and the remaining amount upon completion. This provides financial flexibility and allows you to plan your investment more effectively.

Read why Montenegro is a safe and attractive investment destination for Polish buyers in 2025:

Myths vs. Facts: Why Montenegro Is a Safe Investment for Polish Buyers

Major Developments — Where to Buy Directly from Developers

Luštica Bay is the largest master-planned development in Montenegro: 690 hectares, four districts, its own marina, a Gary Player-designed golf course, and Chedi hotels. The developer is Orascom, an Egyptian corporation with extensive experience in developing entire cities. Prices in new phases start at €4,500/m² in Marina Village and reach €7,000/m² in The Peaks golf residences.

The advantage of Luštica Bay is its long-term perspective — the project is expected to continue developing beyond 2030. This means that you are buying today at the development stage, while in 5–7 years you could have a completed destination with extensive infrastructure, including international schools, a medical center, supermarkets, restaurants, and beaches. Historical data from similar Orascom projects indicate solid value growth between early-stage purchase prices and prices after completion.

Portonovi is another major player — featuring the One&Only Resort, a world-class marina, Chenot spa, and private residences in Herceg Novi. Prices in new phases start at €9,000/m² for apartments and can exceed €12,000/m² for villas with beach access. This is a premium segment, but buyers gain access to the global One&Only brand and its international resort network.

Local developers in Budva and Tivat offer lower prices (€2,500–4,500/m²) and smaller projects, typically consisting of 20–50 apartments. Here, the key is to choose established companies with successfully completed projects in recent years.

Looking for a specific project with strong security and transparent terms? We can show you reputable developers offering the best balance between price and growth potential. Contact us!

What Does a Professional Purchase Process Look Like?

The process of buying an apartment under construction begins with choosing the project and developer. Reputable developers have a portfolio of completed buildings, bank financing, and transparent agreements. This is the basic screening criterion — if a developer cannot show at least 2–3 completed projects, it is better to look elsewhere.

The next step is legal due diligence. Your local lawyer checks the land registry to verify that the plot has a clear title, that the project has an approved building permit, and that everything complies with urban planning regulations. This is a standard procedure that costs approximately €1,000–2,500 and takes 7–14 days. It is also worth checking whether the developer has an escrow account or bank guarantee securing the investor’s payments — an increasingly common practice in larger developments in 2025.

After the legal checks are completed successfully, you sign a reservation agreement and pay a reservation fee, usually €5,000–10,000. This reserves your unit for 30–60 days, during which your lawyer prepares the final purchase agreement. The final agreement is signed before a notary and includes the complete payment schedule.

A typical payment schedule consists of 30% upon signing the agreement, 30–40% in installments during construction, linked to construction milestones such as the structural shell and developer-standard completion, and 20–30% upon handover of the keys. The larger and more reputable the developer, the more flexible the payment schedule tends to be — major developments may even offer a 10% initial payment with the remaining amount divided into smaller installments.

During construction, you receive regular reports from the developer, usually quarterly, and you may visit the construction site. Professional developers often organize open days for buyers, allowing you to see the progress of the project and ask questions directly to the construction manager. This is the level of transparency you should expect when making such a significant investment.

It is also worth reviewing the complete purchase procedure described in our guide:

Buying Property in Montenegro Step by Step

You should also check the latest taxes and fees in our article:

Property Purchase Taxes in Montenegro 2025.

What You Need to Know About the Purchase Agreement

A secure purchase agreement should contain several key elements. The first is a precise description of the property: exact usable and additional floor area, including the terrace, storage room, and parking space, as well as the unit number, floor, and orientation. It is also a major advantage to include a materials and specifications schedule listing the specific manufacturers and brands of finishing materials — this helps eliminate unpleasant surprises at handover.

The second element is a realistic completion date. Professional developers provide a realistic timeline with a buffer, typically 24–30 months for a medium-sized project. The agreement should also specify what happens in the event of delays — usually the buyer’s right to withdraw from the agreement and receive a refund of payments, together with compensation if the delay exceeds 6–12 months.

The third element concerns handover procedures and warranties. You should have the right to carry out a final inspection before making the final payment. Any defects should be corrected within a specified period, usually 30–60 days, while warranties typically cover at least two years for finishing work and ten years for the structural elements.

The fourth element concerns financial terms. The agreement should clearly state whether the price is final or whether additional costs may arise, such as utility connections, VAT, or administrative fees. The best agreements provide a fixed price with all costs clearly included, so you know exactly how much you will pay from the beginning to the end of the transaction.

Professional developers also offer optional deposit insurance or bank guarantees covering the refund of payments in the event that the project is not completed. This is an additional cost (1–2% of the property value), but it provides peace of mind that your money is protected.

Financing and Payment Schedule

Most Polish buyers purchasing apartments under construction pay in cash, but financing through Montenegrin banks is also possible — provided that the developer has a partnership agreement with the bank. Payment schedules are negotiable, particularly in large developments. If you are purchasing several units or have a proven track record with the developer from previous transactions, you may be able to negotiate better terms: a lower initial payment, longer periods between installments, or a bonus for early completion.

The key is to ensure that the payment schedule is linked to construction progress rather than simply to calendar dates. “Installment 2 payable once the building reaches the enclosed structural shell stage” is better than “Installment 2 payable on December 31, 2026,” because if construction is delayed — which does happen — you are not paying for something that does not yet exist.

The final payment (20–30%) is made upon handover of the keys and registration of ownership in the land registry. This is your negotiating leverage — if there are defects that need to be corrected, you can withhold part of the final payment until they have been resolved. Professional developers accept this as standard practice.

The Difference Between Premium and Middle-Market Developments

Premium developments such as Luštica Bay, Portonovi, and Porto Montenegro offer the highest level of security. You have international developers, financing from major banks, transparent reporting, and comprehensive legal protection. However, you also pay a premium price: €6,000–12,000/m².

Middle-market developments by experienced local developers offer a better price-to-value ratio: €3,000–5,000/m² for good quality and location. The risk is somewhat higher than in major master-planned developments, but with proper due diligence it is fully manageable. In the middle-market segment, it is still possible to find investments offering rental yields of 6–8% annually through short-term rentals — particularly in Budva and Tivat.

The golden rule: choose developers with at least three completed projects in the last five years, bank financing, and transparent contracts. Avoid first-time projects by unknown companies that promise extraordinary properties at bargain prices — this is where the real risk lies.

Not sure which project to choose? We can prepare a shortlist of reputable developers, including an analysis of price, location, and potential capital appreciation. Click HERE and contact us for a free consultation.

Construction Monitoring and Apartment Handover

During construction, you have the right to make regular visits to the construction site. Professional developers organize “open days” every 3–6 months, allowing you to see the progress, meet the construction manager, and ask questions. It is also a good opportunity to meet other owners and exchange contact information.

If you cannot regularly travel to Montenegro, it is worth hiring a local building inspector (€500–1,000 for the entire project). They will monitor the construction on your behalf and send you monthly reports. This is particularly important during the final finishing stages, when the quality of details becomes especially important.

The apartment handover usually takes place 30–60 days before the final completion deadline. You receive a snagging list, the developer is given a specified period to correct the defects, and then the final inspection and key handover take place. You should not make the final installment until all defects have been corrected — this is an important form of protection for the buyer.

After handover, the ownership registration and cadastral registration process begins. In Montenegro, this can take 2–4 months and involves a notary. Your lawyer coordinates the entire process, so you do not need to travel to Montenegro every week. Once registered, you become the legal owner and can begin renting the property or using it personally.

Comparison of Available Off-Plan Developments

Luštica Bay still has available units in Marina Village (apartments €450,000–800,000) and The Peaks (villas €900,000–2.5 million). It is considered one of the safest under-construction investment opportunities in Montenegro, with potential for value appreciation through 2030, when the project is expected to be fully developed.

Portonovi has several new phases under development, mainly apartments in residential buildings rather than the more expensive One&Only branded residences. Prices start at around €7,000/m² for marina-view units, with completion scheduled for 2027–2028.

In Budva, some of the most interesting projects are hillside developments with sea views: €3,500–5,000/m², with completion dates in 2026–2027 and reputable local developers with completed projects. This is an excellent option if you are looking for short-term rental returns — Budva has one of the longest tourist seasons in Montenegro.

In Tivat, in addition to Porto Montenegro, there are also middle-market developments close to the airport and marina: €3,000–4,500/m², with good infrastructure and growing demand from remote-working expats. Smaller units (50–70m²) are particularly suitable for long-term rentals.

Frequently Asked Questions (FAQ)

Can I buy an apartment under construction if I do not speak Montenegrin or English?
Yes. All documents can be translated into Polish by a sworn translator, and notaries accept such translations. Most major developers have English-speaking sales teams, while local agents often work with translators.

How much is the reservation deposit and is it refundable?
The reservation deposit is usually €5,000–10,000 and reserves the apartment for 30–60 days. It is generally refundable if you fail the legal due diligence process or the bank refuses financing, but it may be retained if you simply change your mind without a valid reason.

Do I pay VAT when buying an apartment under construction?
Montenegro does not apply VAT to property transfers in the same way as a property transfer tax; instead, buyers generally pay property transfer tax where applicable. The first sale of newly built apartments by a developer may be subject to VAT, which is often included in the advertised price. Always check whether the quoted price is “gross” or “net” and confirm the applicable tax treatment before signing.

How long does the entire process take from reservation to receiving the keys?
For projects under construction, the process typically takes 18–36 months from signing the agreement to completion, depending on the construction phase at the time of purchase. If you buy during the presale stage, before construction has started, it may take as long as 30–36 months. Projects at an advanced construction stage may be completed within 6–12 months.

What happens if the developer goes bankrupt during construction?
In large international developments such as Luštica Bay or Portonovi, the risk is generally lower due to financial safeguards and international development standards.
For middle-market developments, the level of risk is higher — which is why it is important to check for bank guarantees or deposit insurance, where available (typically costing around 1–2% of the property value).
Without such safeguards, in the worst-case scenario, buyers may risk losing amounts already paid.

Can I rent out the apartment before construction is completed?
No. You generally cannot legally rent out the apartment until construction has been completed, the property has passed the required technical inspection, and you have been registered as the owner. Only then can you complete the necessary registration for tourist accommodation and begin short-term rentals.

Your Decision and Next Steps

Buying an apartment under construction in Montenegro is an established investment strategy for people who want to buy wisely and potentially save up to 40% compared with completed properties. The key is choosing a reputable project, carrying out professional legal due diligence, and signing a transparent agreement — with these safeguards in place, the process can be straightforward and secure.

You do not have to do it alone. As a local partner with access to leading developments, we help Polish clients throughout the entire process: from selecting the location and negotiating terms to legal due diligence, construction monitoring, and final handover. We have direct relationships with developers and can often negotiate better prices or terms than those available through standard public offers.

If you are considering buying property in Montenegro, the first step is a conversation. Tell us about your budget, preferences, and investment goals, and we will present 3–5 of the best projects suited to your profile. No obligation, no fees — simply a professional consultation.

Ready to explore the best off-plan developments in Montenegro? Contact us today — we will check availability, negotiate the terms, and guide you through the entire process from start to finish. Your investment in the hands of local experts.

Note: All prices, completion dates, and terms stated above are indicative and may vary depending on the specific project, developer, construction phase, and current market conditions. Before making an investment decision, we recommend verifying all information and consulting with our team.