Luštica Bay, the 690-hectare site in the south of Montenegro has just opened its first 5-star hotel – The Chedi Luštica Bay. The opening is an important step forward in the master plan of the resort, which is the biggest development in Montenegro thanks to a €1.1billion backing*. The creation of Luštica Bay is part of the Government's objective to position Montenegro as an attractive luxury destination for tourists and property buyers alike.

The Chedi will be one of the largest hotels in the Boka Bay area, overlooking a 176-berth marina with views of the Adriatic Sea and beyond.  Residents and tourists can enjoy fine dining, cafés and bars as well as numerous shops. Luštica Bay will also feature attractive town squares, a market and parks. Those looking to stay for a longer period of time will appreciate the plans for a school and clinic. Luštica Bay will give property buyers the opportunity to choose from apartments, condos, townhouses and villas with prices ranging from €2,700 to €6,500 per sqm.

Milos Radmilovic, Founder of property specialist IM Property Group comments: “The opening of The Chedi Hotel Luštica Bay is testament to the strong financial backing and confidence in our country by the international developer Orascom. Since 2006, corporate investors have been teaming up with the Government to create attractive holiday and second home destinations in the coastal region. Luštica Bay is one of many resorts that are in the pipeline.”

The resort of Porto Montenegro has shown what can be achieved. Bought in 2006 by a group of investors led by Peter Munk, the Canadian gold magnate, the resort was turned into the ultimate luxury destination. Featuring a marina for superyachts, international boarding school, five-star hotel as well as shops and restaurants, Porto Montenegro was finally bought by Investment Corporation of Dubai in 2016 for an undisclosed sum. All 290 apartments have sold out and prices have more than doubled since the initial launch of the project.

Another well-respected resort in the Bay of Kotor is Portonovi; the brainchild of Azmont Investments, which is backed by a consortium of Azerbaijani Investment Holding companies. The €830 million resort is planning to launch its first phase in the spring of next year with the objective of attracting the super-rich and their superyachts as well as the wider tourism market.

Tourism now accounts for 20 percent of Montenegro's GDP and has risen by nine percent since 2017. In response, the Government plans to add 100,000 new beds to Montenegro's coastal areas by 2020. Radmilovic adds: “We expect the growth of Montenegro's tourism and resort industry to have a very positive impact on property prices. Low interest rates of four percent and the availability of mortgages up to 50 percent of property value have increased buyer interest.”

Whilst corporate investors; often from the Middle East, Russia and China; are attracted by Montenegro's foreign-trade laws and its favourable tax exemptions; private property investors are drawn in by Montenegro's pending EU membership. Already, the Government has adopted the euro as its sole legal tender.

To find out more about the property market in Montenegro, please contact IM Property Group via www.improperty.group

* joint venture between Orascom Development Ltd. (90%) and the Government of Montenegro (10%)

Editors Notes
IM Property Group

IM Property Group is a property specialist that sources, sells, and advises clients on property purchases and investments in Montenegro. With over 12 years' experience the team advise on all property transactions from a specific property purchase to land purchase for development.

For institutional and private developers, they offer project management and delivery of schemes. Their professional team consists of experienced individuals and partner companies who have previously held senior roles or been retained by leading developments in Montenegro and internationally.

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