UAE vs Montenegro: Where to buy real estate and where to invest?

In recent years, the question of where it is better to invest in real estate - in the UAE or Montenegro, has become especially relevant for investors. These two countries offer unique opportunities for those looking for favorable conditions for buying and renting real estate. The main criteria to consider when making a choice include profitability, taxes and growth prospects. This article will be useful not only for investors, but also for expatriates and business owners who are considering expanding their assets abroad.

Analysis of the real estate market in the UAE and Montenegro

UAE: City of the Future

When it comes to buying real estate in the UAE, the first thing that comes to mind is Dubai. This city has long been a symbol of luxury living and high technology. In 2024-2025, the real estate market in the UAE continues to develop at a dynamic pace. The average cost per sq. m. in Dubai is approx. 3,000-4,000 euros. Of course, it depends on the neighborhood: in upscale neighborhoods such as Dubai Marina or Palm Jumeirah, prices can be significantly higher.

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Demand for real estate in the UAE remains high due to the stable economy and political environment. The government actively supports infrastructure development, which attracts both local and foreign investors. An important factor is that in the UAE, foreign buyers can acquire real estate ownership in special zones - freezones.

Montenegro: The Pearl of the Adriatic

Montenegro, with its picturesque scenery and mild climate, is becoming increasingly popular among investors. Unlike the UAE, more affordable options can be found here. The average price per 1 sq. m. in popular resort areas such as Budva or Kotor is approx. 1,500-2,500 euros.

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Political stability and rapid development of tourist infrastructure make Montenegro attractive for investment. The country's economy continues to grow and this has a positive impact on the real estate market. Foreigners are free to buy real estate, making the investment process easier and more affordable.

Popular neighborhoods for buying real estate

In the UAE, in addition to Dubai, it is worth paying attention to Abu Dhabi - the capital of the country, where there is also an active development of the real estate market. The average cost per sqm here is slightly lower than in Dubai, making it attractive to investors.

In Montenegro, besides Budva and Kotor, places like Tivat and Herceg Novi are popular. These cities offer not only beautiful views, but also excellent real estate rental opportunities for tourists.

The impact of economics and politics on the real estate market

The UAE continues to attract investors due to its stable economy and favorable tax policy. The absence of income and capital gains tax makes real estate investments particularly attractive. This is one of the reasons why many people choose the UAE for long-term investments.

Montenegro is also experiencing positive dynamics due to the government's efforts to improve the investment climate. The country is actively working towards EU accession, which may significantly increase the attractiveness of the real estate market in the coming years.

Comparison of key investment drivers in the UAE and Montenegro

The UAE offers a higher rate of return but requires more start-up capital. Montenegro attracts low entry thresholds and accessibility for foreign buyers. The choice depends on your investment objectives and opportunities.

Nuances when buying a home in the UAE and Montenegro

Permitted forms of ownership for foreigners

UAE: In UAE foreigners can purchase real estate into full ownership only in designated areas known as freezones. This ensures that the buyer's rights are protected and the transaction is transparent. However, it is worth remembering that some areas have restrictions and you can only buy on a leasehold basis for up to a 99 years.

MontenegroMontenegro gives foreigners complete freedom to purchase real estate. There are no restrictions on the purchase of both residential and commercial real estate here, making the buying process easier and more affordable.

Purchase procedure: what documents are required?

UAE: The process of buying real estate in UAE requires the preparation of a certain set of documents. You will need your passport, a sales contract and proof of payment. You may also be required to open a UAE bank account for financial transactions.

Montenegro: In Montenegro buying process real estate is more straightforward. Required documents include a passport, a purchase contract and a certificate of financial solvency. Opening a bank account in Montenegro can also be useful for transactions.

What hidden costs may arise?

UAE: There are additional costs to consider when buying real estate in the UAE. These include registration fees, which amount to approx. 4% of the value of the property, as well as legal and real estate agent fees.

Montenegro: There are also additional costs in Montenegro, but they are usually lower than in the UAE. Registration fees are approx. 3% of the object value, and may also require the services of a lawyer and an agent.

Peculiarities of registration and terms

UAE: The real estate process in the UAE can take from a few weeks to a few months, depending on the complexity of the transaction and the availability of all the necessary documents. It is important to keep in mind that bureaucratic procedures may be more complex than in some other countries.

Montenegro: In Montenegro, the clearance process is usually quicker and takes from a few weeks to a month. Bureaucratic procedures are less complicated, which makes buying real estate more convenient for foreign investors.

Similarities and peculiarities of the real estate market in the UAE and Montenegro

What are the similarities between the two markets?

Foreign buyers: Both UAE and Montenegro are actively attracting foreign investors. Both countries have created conditions for comfortable real estate acquisition, which contributes to the growing interest of foreign buyers.

Developed tourist infrastructure: Both states have a well-developed tourism infrastructure that supports the demand for rental properties. In the UAE, this translates into luxury resorts and unique attractions such as the Burj Khalifa and Palm Island. In Montenegro, it's the picturesque beaches of the Adriatic and historic cities such as Kotor and Budva.

Key differences

Level of bureaucracy: In the UAE, bureaucratic procedures can be more complicated for foreigners, especially with regard to obtaining permits and processing transactions. In Montenegro, these processes tend to be quicker and easier, making it more attractive to those who value speed.

Processing time: In the UAE, transactions may take longer to process due to the need to comply with all formalities and inspections. In Montenegro, the process of buying real estate usually takes less time, which allows you to complete the deal faster and start using the object.

Cost of housing maintenance: In the UAE, it can be more costly to maintain real estate due to the high standards of maintenance and infrastructure. This includes utilities, maintenance and insurance costs, which can be as high as 2,000-3,000 euros per year for a standard apartment. These costs tend to be lower in Montenegro, making property ownership more economical.

Rental market

UAE: The rental market in the UAE is more developed and offers a wide range of opportunities, from short-term rentals for tourists to long-term rentals for expats. High level of rental yields, on average 6-8% per yearmakes it attractive to investors.

Montenegro: In Montenegro, rentals are also in demand, especially during the summer season. The rental yield may be as follows 5-7% per year, which allows investors to receive a stable income from their investments.

Prospects for growth and development of resort real estate

Development of tourism infrastructure and its impact on the market

UAE: In the UAE, tourism infrastructure continues to grow rapidly. Dubai and Abu Dhabi are actively investing in new projects such as theme parks, shopping centers and cultural facilities. These investments help increase tourist traffic, which in turn supports demand for resort real estate. The number of tourists is expected to increase in the coming years, which will have a positive impact on rental income.

Montenegro: Montenegro is also actively developing its tourist infrastructure. New hotels, yacht marinas and entertainment complexes are springing up all along the Adriatic coast. This makes the country even more attractive to tourists and investors looking for investment opportunities in resort real estate. The growing number of tourists contributes to an increase in demand for rentals, especially during the summer season.

Important investment projects in the next 5 years

Montenegro: Montenegro has also planned significant investments in tourism infrastructure. The construction of new hotels and entertainment complexes, such as the Porto Montenegro resort, creates additional opportunities for investors. These projects will not only improve the tourist attraction of the country but also increase the real estate values in the surrounding areas.

UAE: There are several major projects planned in the UAE that could have a significant impact on the real estate market. These include the construction of new theme parks and resorts, as well as the expansion of existing tourist areas. These projects will attract even more tourists and investors, which will increase the demand for real estate.

Analysis of demand for resort rentals

UAE: The demand for resort rentals in the UAE remains high due to the year-round tourist season. Short-term rentals are especially popular in Dubai and Abu Dhabi, where tourists prefer to stay in luxury apartments and villas. This provides a steady stream of income for property owners.

Montenegro: In Montenegro, the peak demand for rentals is during the summer months, when tourists fill the beaches and resorts. Short-term rentals are especially popular in cities such as Budva and Kotor, where tourists are looking for accommodation with sea views. This creates a great opportunity for investors focused on seasonal income.

Yield from short-term and long-term leases

Which properties are more profitable to rent out?

UAE: In the UAE, short-term rentals remain one of the most lucrative strategies, especially in cities such as Dubai and Abu Dhabi. Tourists and business travelers prefer to rent apartments and villas for a short period of time, which allows property owners to earn a high income. The average cost of rent in popular neighborhoods can reach 150-300 euros per nightDepending on the location and comfort level.

Montenegro: Short-term rentals are also popular in Montenegro, especially during the summer season. Resort towns such as Budva and Kotor attract many tourists, which creates a high demand for rental accommodation. Here, the average rental cost is 50-100 euros per nightThis makes it attractive to investors focused on seasonal income.

Average rental income in popular neighborhoods

UAE: In the UAE, short-term rental yields can be as follows 6-8% per yearmaking it one of the highest in the world. Long-term rent also brings stable income, especially in areas with developed infrastructure and good transport accessibility.

MontenegroIn Montenegro, rental yields are slightly lower, but still attractive to investors. Short-term rentals in resort areas can bring in 5-7% per year, while long-term leasing provides stable income all year round, especially in cities with developed infrastructure.

Taxes and maintenance costs

UAE: In the UAE, the tax policy regarding rental properties remains favorable. The lack of tax on rental income makes this market particularly attractive to investors. However, it is worth considering the costs of maintaining the property, which can include utilities, maintenance and insurance, amounting to up to 2,000-3,000 euros per year.

Montenegro: Montenegro also has tax incentives for property owners. Taxes on rental income generally amount to approx. 9%, which makes this market competitive. Housing costs in Montenegro are generally lower than in the UAE, allowing investors to earn a cleaner return.

Economy and life in the UAE and Montenegro

Average income level of the population

UAE: In the UAE, the average income level of the population remains one of the highest in the world. The average salary in major cities such as Dubai and Abu Dhabi is about 3,000-4,000 euros per month. This is due to the high level of economic development and the presence of many international companies offering competitive salaries.

Montenegro: Montenegro has a much lower income level than the UAE. The average salary is approx. 700-1,000 euros per month, reflecting a more modest level of economic development. However, this is offset by lower living costs, making the country attractive to expats and retirees.

Prices for food, utilities, internet

UAE: The cost of living in the UAE can be quite high, especially in the major cities. Prices for food and utilities often exceed European standards. For example, monthly utility costs may be as follows 200-300 eurosand the Internet is about 50-70 euros.

Montenegro: The cost of living is much lower in Montenegro. Food and utility prices are more affordable, making it possible to live comfortably even with a moderate income. Monthly utility costs are generally as follows 100-150 eurosand the Internet is about 20-30 euros.

Quality of life for expats

UAE: The UAE offers a high level of comfort and amenities for expats. Modern infrastructure, a variety of entertainment and a high level of security make the country an attractive place to live. However, it is worth bearing in mind that the climate can be quite hot, especially in the summer.

Montenegro: Montenegro attracts expats with its relaxed lifestyle and beautiful nature. Here you can enjoy the mild climate and picturesque scenery, and feel safe thanks to the friendly population. The country offers a more measured rhythm of life, making it an ideal destination for those seeking tranquility and comfort.

Education and medicine

Accessibility to international schools and universities

UAE: In the UAE, education is at a high level, especially in the major cities. It is home to international schools offering British, American and international programs. The cost of tuition at such schools can range from 10,000 to 25,000 euros per year. Universities in the UAE also attract students from all over the world by offering a wide range of programs in English.

Montenegro: Montenegro has a less developed education system compared to the UAE. There are a few international schools here, but the selection is limited. The cost of tuition at private schools is approx. 3,000-5,000 euros per year. Higher education is represented by local universities that offer programs in Montenegrin and English.

Level of medical care and cost of insurance

Montenegro: In Montenegro, the level of medical care is somewhat lower than in the UAE, but it is still of good quality. Public hospitals and clinics offer basic medical services, while private facilities provide a higher level of service. The cost of health insurance here is approx. 300-700 euros per yearmaking it affordable for most residents and expats.

UAE: In the UAE, medical care is in line with international standards. Highly qualified specialists work here, and the hospitals are equipped with modern equipment. The cost of health insurance may be 500-1,500 euros per yearDepending on the selected service package and coverage level.

Roads and transportation infrastructure

Development of public transportation

UAE: In the UAE, public transportation is highly developed, especially in the major cities. Dubai boasts a modern metro, bus and streetcar system that covers the main areas of the city. Metro fares start at 1 euromaking it an affordable and convenient means of transportation.

Montenegro: In Montenegro, public transportation is less developed, especially in rural areas. The main modes of transportation are buses and shuttles, which connect major cities and resort areas. The bus fare is approx. 1-2 euroswhich makes it accessible to residents and tourists.

Cost of cabs, carsharing, autos

UAE: Taxis in the UAE are a popular and relatively affordable way to get around. The average cost of a cab ride is approx. 10-20 euros, depending on the distance. Carsharing is also gaining popularity, offering convenient conditions for renting cars for short periods of time.

Montenegro: In Montenegro, cabs are also a convenient means of transportation, especially in cities and tourist areas. The cost of a cab ride on average is 5-10 euros, which makes it affordable for most. Carsharing is not so developed yet, but car rentals are available and popular among tourists.

Accessibility for motorists

UAE: The roads in the UAE are in excellent condition, making the country attractive to motorists. Wide highways and modern interchanges ensure comfortable travel throughout the country. However, it is worth bearing in mind that major cities such as Dubai can experience traffic jams during peak hours.

Montenegro: In Montenegro, road infrastructure is less developed, especially in mountainous areas. Nevertheless, the main roads between the cities are in good condition, allowing for comfortable travel by car. It is important to remember that during the tourist season, traffic can be difficult due to the large number of tourists.

Legal and tax specifics

Main taxes when buying, owning and selling real estate

UAE: In the UAE, the tax system is very loyal to property owners. A registration fee is charged on the purchase of real estate, which is approx. 4% of the object value. However, there is no tax on real estate ownership and capital gains on its sale, which makes the UAE attractive for long-term investments.

Montenegro: In Montenegro, the tax system is also quite favorable. When you buy a property, you must pay a transfer tax, which is 3% of the object value. The tax on real estate ownership varies depending on location and type of property, but is typically about 0.1-0.3% per year. On the sale of real estate, capital gains are taxed on the sale of real estate that are 9%.

Possibility to obtain residence permit or citizenship through investments

UAE: UAE offers the possibility of obtaining a long-term visa for investors, making the country attractive for those planning a long stay. Investors who have invested substantial sums in real estate may qualify for a visa for up to 10 years.

Montenegro: Montenegro offers a citizenship program through investment, which makes it particularly attractive to foreign investors. To obtain citizenship, you must invest in real estate from 250,000 euros and make an additional contribution to the state fund. This opens up access to the European market and allows free movement within the EU countries.

Rental taxes and optimization opportunities

UAE: There is no tax on rental income in the UAE, making this market particularly attractive to passive income oriented investors. However, it is worth considering the costs of maintaining and managing the property, which can affect the net yield.

Montenegro: In Montenegro, rental income is subject to tax, which is as follows 9%. However, there are opportunities for tax optimization, including the deduction of property maintenance and repair expenses. This allows investors to maintain a competitive rate of return.

What should an investor choose: UAE or Montenegro?

Who should invest in the UAE?

UAE is an ideal choice for investors looking for stability and high rental yields. A stable economy, no taxes on income and capital gains, and the ability to obtain a long-term visa make the UAE attractive for large investments. Investors focused on luxury properties and high standards of living will find plenty of opportunities to realize their projects here. The average cost of buying real estate starts from 150,000 eurosThis makes this market more suitable for those who are willing to invest significant sums.

Who is Montenegro suitable for?

Montenegro attracts investors looking for affordable investment options and the possibility of citizenship through investment. Low property taxes and rental income, as well as lower maintenance costs, make Montenegro attractive to those looking for a stable income with less investment. Minimum investment amounts here start from 50,000 eurosThis makes the market accessible to a wider range of investors. The citizenship by investment program opens up additional opportunities for free movement across Europe.

Thus, the choice between the UAE and Montenegro depends on your investment objectives and opportunities. The UAE is suitable for large investors focused on long-term investments and high returns. Montenegro, on the other hand, offers affordable investment conditions and citizenship opportunities, making it attractive to a wider range of investors.