Montenegro:

Hotspots

Property investment hotspots in Montenegro

Contents

Kotor

Kotor is a Unesco World Heritage Site and a medieval fortress city, which makes it more than just the usual beachfront resort. Settled next to a beautiful bay and surrounded by mountain ranges, the town offers stunning views and quaint cultural attractions in its churches and cathedral, while the Maritime museum also emphasises the naval heritage of the town. The area has already witnessed substantial investment and prices in this area are generally well above the national average, and comparable to the most expensive areas in Croatia. A one-bedroom apartment here can sell for around £100,000 ($201,600), while a three-bedroom house costs around £210,000 ($423,400). Although the market remains popular, it has more appeal amongst those looking for holiday homes than amongst dedicated property investors.

Coastal areas south of Kotor, including Herceg-Novi, Budva and Bar

In coastal areas south of Kotor, property prices are considerably lower. In general, opportunities for capital appreciation are now better in the south or inland at mountain and lake resorts although any properties near beaches like Buljarica or Becici are also likely to see a healthy price rise. Another good bet is Ulcinj, which has 8 miles of beach and prices which continue to offer good value.

Positioned near to the classified beauty spot of the Bay of Boka Kotorska and the ski slopes of Orjen, Herceg-Novi is increasing in its popularity as a tourist destination. Budva and Bar are also emerging as popular resorts and investment hubs. Budva is a walled town placed just outside Sveti Stefan surrounded by 24 miles of beach and thanks to its pale stone town walls, is frequently compared to Dubrovnik. The island of Sv Nikola lies only a kilometre from Budva and has become a great excursion site for tourists. The area around Budva and Sveti Stefan is one of the most intense areas for development throughout Montenegro and a three-bedroom house in the historic town of Budva costs an average of £86,600 ($174,600).

Tivat

The Tivat Riviera is also tipped as a hotspot with stunning scenery and vegetation. A place of interest is Ostrvo Cvijeca known as the Island of Flowers. Property prices are set to rise here significantly. Its airport makes it very accessible and it is also the site of a huge marina and resort project by the tycoon Peter Munk.

Inland areas

There are increasing numbers of projects available in other regions of Montenegro, including the capital Podgorica. This bustling city is the commercial centre of Montenegro and is positioned amongst five different rivers. After significant damage in WW2 much of the city has modern architecture and a well developed transport infrastructure. The area around Skadar Lake is also becoming increasingly popular. As the largest lake in the Balkan Peninsula and an excellent conservation reserve to wildfowl, it is an ideal location for those who love country pursuits such as walking, hiking, bird watching and fishing. Prices are starting to go up, but you can still find a stone house on Skadar Lake for upwards of £20,500. Most importantly, given the minimal investment to date, the mountain regions are now hotspots for investment and the government, donor agencies and NGOs are now promoting these heavily.

Finally, for something different, Cetinje is the traditional capital and cultural centre of Montenegro. Viewed as an excellent area for the development of tourism, it is now a university town and property can be picked up cheaply and rented to students.

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