Is now the right time to buy in Kotor old town?
Kotor is a beautiful town with distinctly Mediterranean architecture, charming squares and history around every corner. It’s no wonder it was so popular with English and Irish buyers in 2005 to 2007. During this period prices doubled then tripled reaching 3.000 to 4.000 EUR/m2. However, the credit crunch changed the situation significantly. Along the coast, house prices have decreased by 30% on average but property prices in the old town were affected the most, largely because the types of buyers have changed as well. In the last few years, very few buyers have been coming from Western Europe and more and more have been arriving from Russia. Since 2009, Russians have accounted for 90% of foreign property purchases and their preferences have been newly built, modern properties. This has made old town properties increasingly difficult to sell.
Currently, the old town properties are selling at approximately 2000 EUR per m2 and sometimes even lower, with many great deals around.
Over time, the town has become a must see for all tourists visiting Montenegro, and every morning the town is swarming with visitors from cruise ships, on one of their scheduled stops. Since 2005 many properties have been renovated to a high standard, lovely boutique hotels have opened, and excellent restaurants and cafes are in every square. The apartments are very easy to rent out. Kotor is also the main town of the Boka Kotorska Bay and close to large developments like Porto Montenegro, Lustica Bay and the One and Only Resort in Kumbor.
Kotor is a remarkable medieval town, one that rivals a handful of remaining old towns in Europe. It is, of course, irreplaceable, unique and for many a dream location. It’s popularity is set to increase again as it retains its character as a working town, yet still lends itself to stunning photography by every tourist that stops by. A medieval town set by the sea, backed by mountains. It’s the ultimate location, location, location!