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


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