High mountains, deep inland lakes and the breathtaking southern coastline of bays and beaches, as well as sunny summers and mild winters are just some of the reasons why Montenegro has become a hot spot for relaxation. Combine this with the fact that it occupies a key place for business, attracts foreign investment, has a rapidly growing infrastructure and is a sovereign state since 2006 after its independence from Serbia, and you have one of the most intriguing emerging real estate markets in the world.
Montenegro is committed to membership in the EU in 2014, which will add to its attractiveness for buyers who are looking for investment property or property for holidays. For foreigners who want to buy property in Montenegro, except for land for development, there are no restrictions, and the purchase process is reliably simple. Property prices in Montenegro and lawyers fees are low, and there is no capital gains tax in Montenegro, which contributes to the fuel sector.
Montenegro is well served by airlines. There are regular flights from Podgorica and Tivat to Europe and other places, as well as to Dubrovnik in Croatia, which is about 50 minutes from the border with the Montenegrin Bay of Kotor. Kotor, a fabulous old city that has been recognized as a UNESCO heritage site and is one of the country's most popular holiday hot spots, is located on the shores of the bay.
Most of the new development takes place around Kotor, and there are already reports of an increase in property by as much as 100% over the last year or so, while there is still the possibility of further capital growth, as well as an excellent rent, resulting from a holiday home rental.
“Real estate in Montenegro offers an excellent investment opportunity,” says Glenda Lazare, managing director of Key Universal, a foreign investment company. “The tourism industry is booming in the country, backed by a governmental plan for the tourism master plan for 2007–2020, which aims to create luxury hotels, golf courses and other luxury facilities to attract wealthy tourists.”
Key Universal is the current marketing of Kotor Apartments in Kindness on the outskirts of Kotor. A boutique residence in just ten two-and three-bedroom modern apartments with stunning sea and mountain views, as well as a specification that includes parquet floors, granite stairs and equipped kitchens and bathrooms, the design is ideal for investors who are looking for exclusive leisure opportunities at home, says Lazar.
The complex will have landscaped gardens, a swimming pool and parking spaces. Key Universal has negotiated a special deal with developers, and prices for luxury apartments will start at EUR154,880 (£ 124,000) with a 30 percent deposit and 70 percent payable. “The rugged beauty of Montenegro continues to attract high-profile visitors, including Michael Douglas, Catherine Zeta Jones, Madonna and the Rolling Stones,” adds Lazar. "He is called the next Monte Carlo."
Other companies selling in the Kotor region include Europe Property Plus, which offers Dobrota Heights, a new luxury collection of apartments ranging from € 2325,000 (£ 180,000) and Rosco Properties, which has apartments in Herceg Novi Igalo from EUR142.00 (£ 114,000) and Baosici Sea View Homes from EUR144,000 (£ 115,500), as well as small resale houses that need to be upgraded from 50,000 euros (40,000 pounds sterling).
David Stanley Redfern offers Acacia Hills apartments, a collection of one, two and three bedroom houses in Herceg Novi, not far from Djenovici, overlooking the bay. The use of natural materials was a key feature of the design. Prices are from 103,000 euros (82,600 pounds). “Acacia Hills offers an excellent investment opportunity in a region that sees one of the fastest growing tourism markets in the world,” says David Redfern, managing director David Stanley Redfern. "The prices for these apartments without a plan are very competitive, and we expect that buyers selling capital increases will at least double in the next three or so, along with an affordable rental of about eight percent."
Other popular holiday hot spots in Montenegro include Sveti Stefan and Bar, which are further south along the coast, as well as the historic fortress town of Budva, where life revolves around its elegant pier and harbor. “Real estate in Budva and the real estate market in this area have become very active lately, especially with Russian investors who know the area from holidays and do not need a visa to visit,” says Alex Mark Moller, who sells the Budva Hill resort in Budva .
“Foreign investors are interested in the properties of Budva because of the potential for capital growth and return on investment. We have already sold about half of the plan and are confident that we will sell all the apartments when development will be completed in 2010. ” The Budva Hill Resort, says Moller, will be a landmark event for one and two-bedroom apartments in the area, offering first-class amenities and luxurious living. “There is a shortage of luxury resorts in the area,” he adds. “The apartments will be located on a slope with a fantastic view of the Adriatic Sea.”
Buying a property in Montenegro is straightforward. When buying a resale of real estate in Montenegro, then a deposit of 10 percent will be required to secure the property, but if you buy unscheduled real estate in Montenegro, an initial deposit will be required in stages. Buyers of real estate in Montenegro are recommended to appoint a local resident and get all the documents exclusively translated and printed in court. In addition, make sure that you check the person you are buying, has ownership of the right of ownership. After that, property ownership in Montenegro should be simple and fun.
