Montenegrin Real Estate Market
The Opportunity & Property Rights
The real estate market in Montenegro is still somewhat in its
infancy and is emerging rapidly. The rate of this emergence is the
outcome of privatisation, restitution and a rapid growth in the
tourism industry, allowing foreign nationals to explore and uncover
a relatively under developed country.
Montenegro has emerged as one of
the latest and yet unspoilt destinations in the Mediterranean
attracting both tourists and property investors. The World Tourism
Organisation (WTO) confirmed that Montenegro has one of the fastest
tourism growths worldwide. Similar to Croatia in terms of coastal
geography and a relaxed way of life, Montenegro has benefited from
Croatia's huge and rapid success as a place to visit and acquire a
property, however, also offering significant areas of undeveloped
land and is reminiscent of Greece 30 years ago.
The wealth of potential in the
market stems from the fact that real estate in Montenegro is
materially undervalued and growing in demand from those seeking a
luxury holiday home in the sun. Immediate gains can be realised
from the rental of suitable coastal properties to the fledgling but
burgeoning tourism market, with longer term rental income likely
from well appointed and located apartments in the main towns in
this tiny gem of a European country. In the medium to longer term,
the property market in Montenegro is likely to reward a patient
investor with substantial capital growth accompanied with a boost
by inward foreign direct investment from across the EU, but also
Russia.
Unique selling points in the
Montenegro real estate market are the picturesque Montenegrin coast
accompanied with pleasant year-round climate and unspoilt natural
beauty. The Bay of Budva, which is considered to be the most
attractive part of the Montenegrin coast and voted as one of the
top 10 most beautiful bays in the world, hosts celebrities and
super high net worth individuals amongst property owners. This has
generated a healthy amount of interest in the region and has put
Montenegro on the list of 'hotspots' for residential real estate,
particularly at the luxury end of the market. This has been helped
recently by Nat Rothchild and Peter Munk's development near
Tivat.
Both foreign and domestic investors
are allowed to freely establish, acquire and dispose of business
interests. The Montenegrin Foreign Investment Law states that
foreign persons and companies can, based on reciprocity, acquire
rights to real estate, including: company facilities, place of
business, living spaces and land for construction. In addition,
foreigners claim property rights to real estate by inheritance in
the same manner as a domestic citizen.
Current Projects
By way of illustration and a comparative, current projects
and their indicative pricings are as follows:
-
Porto
Montenegro is a €500 million Super-yacht marina in Tivat comprising
of residences and a village for wining, dining, shopping and
relaxing. There are restaurants, cafes, retail stores and fashion
brands to cater for both visitors and residents alike. Current
sales data suggests that eight tenths of the list are already
reserved or taken. Of those still available, the lowest price is
circa €5,060 per m² and the highest is circa €11,282 per m².
-
TQ Plaza is a
brand new development located on the busy main road running through
central Budva and it includes brand name retail such as Benetton, a
supermarket, bank, Cinema, Restaurants and office space with deluxe
smart home apartments from 60m² - 100m² in size. The current data
suggests selling prices on average for apartments are circa €4,800
per m², which also includes the external terrace area.
Other current developments in
progress and anticipated projects include:
-
The "Astra" Development is a
Russian capital investment, an apartment complex situated on the
peninsula of the Montenegrin seacoast. It consists of premium-class
villas, hotel complex, high-rise apartment building as well as a
health centre, fitness centre, SPA-centre, mooring for yachts,
shops, and a casino. The total area of the complex is about
94,000m² and project investment cost will amount to more than
€200m. This complex of deluxe smart villas is 50% sold off plan
with remaining space on the market for €6,000m2 for second line
housing and €8,000m2 for front line sea facing, including terrace
space
-
The Aman
Sveti Stefan Resort is located on a tiny islet named Sveti Stefan
between the villages of Przno and Sveti Stefan. The island was
opened as a high-profile hotel to celebrities in the 1960s and the
Montenegrin icon is now undergoing a complete restoration. The Aman
Sveti Stefan today offers a total of 50 accommodations consisting
of rooms, cottages and suites on the island.
-
€30 million
refurbishment of Tivat, Podgorica and Dubrovnik International
airports.
-
Sveti Marko
Island Resort, Tivat - Hotel and spa, marina, casino, sports and
leisure, residential
-
Lustica
Development, Orascom - Hotels, golf, marina, sports and
leisure, residential
-
Tre Canne -
Aparthotel, commercial and leisure facilities, residential, this
development is finished to shell and core and is located slightly
behind that of the Adriatic Project.
-
Vlika Plaza -
to be large scale sustainable resort scheme
-
Atlas Capital
Centre - Commercial and leisure, residential
LATEST NEWS
- Regent Hotels and Resorts to operate ReardonSmith-Designed Hotel at Porto Montenegro7 February, 2012
- Montengrin Government establishes EU accession negotiation structure3 February, 2012
- Intriguing Montenegro31 January, 2012