Want an affordable home with a sea view? Montenegro could be the new Riviera

Posted on October 28, 2014
Archive : October 2014
Category : News

By Mark Hughes-morgan
2nd July 2009

Montenegro will soon make Monaco look 'second rate'. So says Canadian billionaire Peter Munk, who last week unveiled the first phase of the redevelopment of Porto Montenegro.

It's the largest of a number of developments planned on the Adriatic coast of this Balkan state, wedged between Albania and Croatia.

Rugged, mountainous Montenegro, with its sandy beaches and stone architecture, has not had such exalted expectations in years.

Its most recent golden age lasted until the Seventies, when Sophia Loren and Kirk Douglas cavorted on the island of Sveti Stefan.

It had less glamorous associations as part of Serbia-Montenegro in the former Federal Republic of Yugoslavia.

But when it gained independence from Serbia in 2006, there was a property gold rush - until the recession hit.

But now, once again, millions of euros are being pumped into projects along the coast. Porto Montenegro is the biggest of these.

Munk and other investors - including Lord Mandelson's friends, Russian oligarch Oleg Deripaska and Lord (Jacob) Rothschild - are creating an upmarket haven for the international yachting set in this former Russian naval base.

Last week's ceremony was to unveil the first jetty of the marina, which will have 630 berths.

The first phase of 29 residential units is being built, and is 50 per cent sold, according to James Price of Knight Frank International, which is marketing the complex in the UK.

It is priced at around 3,400 to 3,800 a square metre, a healthy premium over most equivalent seafront property elsewhere in the country.

The initial selling point is the marina, says Price, with berths only available to apartment owners. The first phase of apartments is due to complete in June 2010.

The 29 units, built using traditional stone, range from one-bedroom studios, at around 170,000, to four-bedroom apartments at 1.5 to 2million.

The complex will also include a Four Seasons hotel, retail development, security and parking.

Porto Montenegro lies at the entrance to the Bay of Kotor, which is a UNESCO world heritage site.

Kotor has a great outlook but does not have the beaches of nearby Budva - which is a lot more buzzy if not quite so picturesque.

Two other major projects in this area are Sveti Stefan itself, which is closed for renovation and is due to open later this year as an Aman Resort, and the island of Sveti Marko, a former Club Med complex, which is being transformed into a Banyan Tree resort and spa, with apartments and houses - a scheme that is currently before the planners.

Apartments and houses, will cost from 340,000 to 5.9million. However, the credit crunch has stopped a number of other projects and while interest revived in the spring, activity is still much reduced.

'We are now 50 to 60 per cent down on transactions in the peak time,' says Jelena Cvjetkovic, who represents Savills in Montenegro. 'And prices are 25 per cent down' - although, in her opinion, they have now levelled off.

British buyers are particularly interested in renovation projects, although there is very little left to do up close to the sea, she adds.

The going rate for new developments around Kotor on or close to the waterfront is 2100 to 2600 per square metre.

In Dobrota, within walking distance of Kotor, Savills has a new two-bed apartment for 196,000.

On the plus side, the Government changed the law in the spring to enable foreigners to own land in their own name, rather than having to set up a company locally.

On the minus side, while many areas are beautiful, the infrastructure still needs work, including roads, dependable water and power. An investment here is a commitment to the country's future.

Our website makes use of non-invasive (no personal data) cookies to provide you with an enhanced user experience. By continuing to use the site, you consent to this.Close More
The UK Law now requires us to get consent from you for the use of cookies.

A cookie is a small file containing text and numbers generated by the website and passed from your browser back to our website when you revisit the site.

A cookie is used here to allow you to navigate the site, log in etc. Without this cookie (called a session cookie), this site would not work properly and so this has already been set.

We use a popular statistics tool called Google Analytics which uses non invasive cookies to allow us to find out how effective our marketing is, based on referencing how you got to our website (search engine, direct, or from another site etc).

We use an animation based rotating image which uses a cookie to know which image was last displayed so that as you move from page to page you are not seeing the same image every time.

We can also make use of third party services such as video clip players which can set cookies, for example to enable them to know that you part played a video clip previously, or to store customised settings such as brightness or volume. Close

Our Villas are English owned, call:
(UK) + 44 (0)7974 430 650
Email: amanda@montenegrocoast.co.uk