Why invest in Montenegro
Beautiful country in middle of Europe
EXPECTED TOURISM DEVELOPMENT IN MONTENEGRO BY MASTERPLAN 2020
Future tourism development will to the greatest extent be spurred by Greenfield investments. This type of investments will contribute to better quality of accommodation facilities, higher-yield guests and greater revenues both from tourism and on other grounds (taxes, charges…). It is particularly significant that the facilities to be built on the sites listed below will need considerable numbers of personnel, indicating that in near future Montenegro will import labor from the region and beyond. Greenfield projects.
|Greenfield projects||Initial year||Project completion||Investment (in mil. €)|
Altogether, over 10,000 hectares of land reserves are available for new holiday resorts at several coastal sites situated at top beach locations and areas suitable for nautical tourism, most of this, recently decommissioned military premises. Some of these areas are ecologically valuable and can only be put to limited use: Ada Bojana, Šasko Jezero,Velika Plaža, Buljarica. This order of magnitude, however, still permits a generous ratio of green space for outdoor tourist amenities per guest bed (bathing landscapes). These will count as another quality feature of Montenegro after many competitor destinations have completely covered their coasts in concrete.
The regional masterplan for Velika Plaža, for example, therefore provides for 100 m2 of green space per guest bed with a total of 30,000-40,000 beds. In addition to the above, already pending projects, there is still a range of possibilities in Herceg Novi (its part of Luštica, reconstruction of town hotels), Kotor (townhotels, Vrmac, hills in the hinterland of Jaz, Grbalj). It is expected that the number of beds in all type of hotels and similar accommodation arise from 34.000 bed places to 100.000 bed places in coastal area.
NEW HOTELS & RESORTS IN MONTENEGRO
Budva region is located in the central part of the Montenegrin Adriatic coast and is considered to be the center of tourism, thanks to the accessibility and good connectivity to other parts of Montenegro. With numerous projects being completed Budva has been significantly developed during the last five years.
Condo hotel Tre Canne, as one of the prime projects in Budva is located in immediate proximity to Adriatic Fair. The complex comprises 3 towers, central tower and two smaller ones with 275 luxurious apartments, ranging from one to four bedrooms, with gross building area of app. 37,000m2.
The high-end project of 36 villas and 202 residential units located in Zavala peninsula, entered the final construction phase. Moreover, Monterra’s second high-end residential project DOMXXI consists of 13 floors and underground floor with 70 parking places. The ground floor, the first and second floors are assigned to commercial purposes, while above floors are dedicated to residential purposes. The completion of the project is set for spring 2015.
The elite complex Belvedere Residence, developed by Russian company Sagio, is located in the heart of Budva Riviera. The residential complex features 63 apartments, as well as penthouses, apart-hotel with 34 rooms, one villa of 1,200 m2, SPA, fitness centre etc. the realization of the complex is expected by 2016- yearend.
One of the most representative projects currently underway in Adriatic coastal area is Porto Montenegro, designed as a large-scale mixed-use waterfront project, totalling 200,000 m2 of GBA. As of August 2014, within the complex, hotel Regent Porto opened its doors to the guests. The construction works continued on residential complex Ksenija Residences which should have been completed in the summer 2015. Price range of the apartments is from EUR 350.000 – 2.200.000 (71-287 m2).
According to Orascom Development’s plans, its luxury complex Lustica Bay will feature: 7 hotels, over 500 residential villas, over 1,000 apartments, 2 marinas, spa and wellness centres, conference centre. Although the complex covers 690 ha, less than 6% of the land will be developed. Preparatory infrastructure works have started in the late 2012. At the moment, the construction of apartment buildings and a luxury hotel is finished.
Another large-scale luxury resort Portonovi in Kumbor envisages the development of ultra-luxury hotel resort of 120 luxury rooms, high-end residences, Henri Chenot’s wellness centre of 5,000 m2, two marinas anchoring large yachts and conference centre. As per the investor plans, the resort should be finished by 2017.
Announced and planned by company Montenegro Resort, Porto Skadar Lake is new luxurious eco-resort, which should feature 30 villas and eco-spa, along with upscale amenities, situated along Skadar Lake.
Montenegro property offers an excellent investment opportunity. The country has a burgeoning tourist industry, bolstered by the government’s Tourism Masterplan 2007-2020, which aims to develop high-end hotels, golf courses and other luxury facilities in order to attract affluent tourists.
Foreign property demand is expected to rise further these coming years with Ryanair launching several new flights from across Europe (such as from Brussels, Milan, Barcelona, London, Oslo and Stockholm) to Montenegro.
Market price of apartments in Budva has an average annual growth rate of 4.61% (2006-2015). Almost certain is that the price of property in Budva will rise, but the right question to ask might be when is the right time to buy property. In 2013 and 2014 market price of property in Budva suddenly fall first by -6.7% in 2013 then by -20.1% in 2014. But in 2012 we can see increased prices for 25.6%. The market is very unstable and there are variety of shocks which can make price of property suddenly go up or down. It looks like prediction of any kind is impossible here. With lack of certainty we can only tell that the price will be increased in a period of time.
There are no restrictions on foreigners buying property, except for land, which can only purchased by foreigners through a company. After a building is constructed, ownership can be transferred to individuals.