Ability To Offer Short-Term Rentals In Montenegro Is Attracting UK Property Buyers

While many European countries crack down on the holiday rentals market in a bid to prevent a two-tier market, it's quite a different scenario in Montenegro.

In fact, the country's tourism boom is making short-term rentals and subsequent second-home investments hot commodities.

In sought-after Kotor, for example, the number of Airbnb listings has climbed to over 270, reflecting a surge in demand. This picturesque coastal town is a magnet for HNW tourism, and platforms including Airbnb and Booking.com are thriving as a result. Properties in Kotor are booked for an impressive 234 nights a year, with an average daily rate of $94, underscoring the lucrative holiday let market.

The Montenegrin government is actively promoting tourism, which means more flights and travel routes are opening up. This has led to a growing preference for short-term rentals over traditional hotels. Holidaymakers are increasingly opting for entire homes and studios, which are readily available on these platforms.

Coastal rental properties are seeing appreciably higher occupancy rates, with Kotor averaging 64%. This is a significant jump from previous years. As a result, property prices in these coastal areas are on the rise. Investors are taking note of these trends, recognising the potential for strong rental yields. The combination of high occupancy rates and competitive daily rates makes these properties an attractive investment opportunity.