There are only a few luxury developments planned for Montenegro over the next five years, predominately due to the worldwide recession and banks’ appetite for lending in the current climate.

One major development in Budva, however, will be the Adriatic project, a 180 bedroom hotel and 161 apartment scheme. The project will be the first major hotel and residential development on the beachfront in Budva. The scheme will encompass a 5 star luxury brand as hotel operator, a high-end branded restaurant from a world leading restauranteur as well as an incomparable level of specification for the apartments in Montenegro.

The views from the 23 storey residential tower will be unparalleled anywhere else in the Adriatic with 360 degree views of all that Budva has to offer. As well as owner-occupiers, purchasers of residential stock will also be able to utilise a rental pool managed by the worldwide hotel operator, offering higher returns than most projects due to the unique status of the project. Investors can participate in the overall development scheme through a number of tax-efficient investment structures.

According to the World Travel and Tourism Council Economic Impact Report 2011, emerging economies such as Montenegro are expected to be increasingly important for economic growth by boosting international travel and contributing to the development of dynamic domestic tourism.

Montenegro, which is now one of the fastest growing tourism destinations worldwide, is set to become a hot-spot for luxury tourism developers and investors from around the world, the focal point being the beautiful town of Budva.

Boasting a dramatic coastline, spectacular beaches, surrounding mountains and world heritage sites, these are just some of the tourism attractions which make Montenegroa unique investment opportunity.

Tim Mycock is head of real estate at Future Capital Partners

Recent large property developments have attracted a number of the world’s rich and famous to not only visit, but also purchase property and moor their yachts on one of the most beautiful and unspoilt coastlines anywhere in the world. A prime example of such a development is Porto Montenegro, a €500m super-yacht marina in Tivat, complete with residences and a village comprising of restaurants, cafes, retail stores and fashion brands for visitors and residents alike

The recent refurbishment of Sveti Stefan, a 15th century fortified village, has returned the island to its former status as a playground for the rich and famous. During the 1960’s many Hollywood stars such as Elizabeth Taylor, Sophia Loren and Kirk Douglas stayed on the island. Today, many famous faces from around the world may be seen at Sveti Stefan, which is quickly gathering an excellent reputation.

Budva is a coastal town along the unspoilt Montenegro shoreline and is the epicentre of the growth of the Montenegrin tourism market. Budva is situated between the beautiful crystal clear waters of the Adriatic to the west and dramatic snow capped mountains to the east and benefits from a glorious Old Town which lies on a small peninsular at the end of the bay. While significantly underdeveloped, Budva has enormous potential for future luxury real estate developments.

Budva’s main tourist season runs from April through to September, however, winters are mild and therefore allow year-round occupation for second home owners. Visitors to the area predominantly come from Russia and the Balkans; however, as Budva has excellent access to three main airports, visitors come from across Europe, the Middle East and Asia.

The first and most popular option is the international airport at Tivat, located approximately 15 minutes from Budva. Tivat has direct flights to Belgrade, Paris, Milan, and various cities throughout Russia and Eastern Europe, and has already become a major hub for international travel within the region. A second option for foreign travellers is Podgorica airport. Located 65km from Budva, it offers direct flights to London, Paris, Rome, Vienna, Belgrade, Budapest, Frankfurt, Naples, Zurich, and Moscow among others. In addition to these two airports, a third option for travel to Budva is via the airport in Dubrovnik, conveniently located across the border in Croatia.

Investing in real estate in Montenegro is straightforward through high-end western agencies or through a series of investment structures into existing deals. Montenegro benefits from a sophisticated land registry system and therefore a number of the issues found in other Eastern European countries surrounding title to property are eliminated.

There are only a few luxury developments planned for Montenegro over the next five years, predominately due to the worldwide recession and banks’ appetite for lending in the current climate.

One major development in Budva, however, will be the Adriatic project, a 180 bedroom hotel and 161 apartment scheme. The project will be the first major hotel and residential development on the beachfront in Budva. The scheme will encompass a 5 star luxury brand as hotel operator, a high-end branded restaurant from a world leading restauranteur as well as an incomparable level of specification for the apartments in Montenegro.

According to the World Travel and Tourism Council Economic Impact Report 2011, emerging economies such as Montenegro are expected to be increasingly important for economic growth by boosting international travel and contributing to the development of dynamic domestic tourism.

Montenegro, which is now one of the fastest growing tourism destinations worldwide, is set to become a hot-spot for luxury tourism developers and investors from around the world, the focal point being the beautiful town of Budva.

Boasting a dramatic coastline, spectacular beaches, surrounding mountains and world heritage sites, these are just some of the tourism attractions which make Montenegroa unique investment opportunity.