Montenegro is a small country, which gained its full independence only seven years ago. Thr backbone of its economy, in addition to industry and agriculture, is tourism. In 2013, portal ee24.com often wrote about the major investment projects related to tourism. Montenegro is positioned as a "new Monaco", but what has been really achieved by the government and business in the past year?
Montenegro is actively developing its coastline. Adriatic is the cleanest part of the Mediterranean Sea. In 2013, the construction of several resort complexes and elite settlements began. Shoppers and tourists should be enticed by low prices (compared to Croatia and especially Italy) and good conditions for recreation and yachting.
We reported that the village Sea Breeze was laid in summer, and in the fall the construction of two major projects began: a resort hotel complex of the worldwide network One&Only, in which the Azerbaijani company has invested €500 million, and the resort on the Lustica peninsula, where the Swiss plan to invest €900 million. This is implemented with the support of the authorities, and sometimes with the participation of public funds.
Investors actively undertook the "defrost" of the unfinished projects: in 2013 it was announced that with the financial participation of Russians the "As" hotel will be completed, and the Americans will complete the construction of residential complex Duckley Gardens, that has begun before the crisis by Sergei Polonsky and his Mirax Group.
Another advantage of the country: in contrast to neighboring Croatia, Montenegro is not yet a part of the EU and can use more flexible visa policy to attract tourists. Russians, for example, do not need Montenegrin visa, and they may enter the country for up to 30 days. And I must say, they actively enjoy this right.
In 2013 the citizens of Russia were the most frequent foreign tourists in Montenegro. In October, for example, every fourth holidaymaker in Montenegro was Russian. They also took the first place in rating of purchasing property in Montenegro in 2013.
Expert's opinion of ee24.com portal
Julia Titova, CEO of international real estate agency Rentsale:
"It's hard to say that Montenegro is literally flooded by money. There is some PR in such an information. And partly Montenegrins are wishful thinking. The promising direction is worth highlighting. It's Lustica peninsula, where in fact many tourist complexes will be built, including hotels, residential real estate and a yacht marina, but that prospects for long years. Projects are divided into phases. Their implementation will occur in 2013-2025 gg. It's not even like Mayakovsky's — "In four years there will be a garden city", but much longer.
If at the end of 2012 and the first half of 2013 the main demand was for cheap apartments, than in the second half of 2013 the trend is for an increasing demand for more expensive items. Actual buyers in Montenegro have become more active. Here, as in most resort countries, we are only talking about buying for personal use. Investing is not a question.
In general, this situation is common to resort markets, and nothing in this terrible and new there. Nobody ever will be able to rent property in the off season in the resort market, so the rental income is low. The stable rental income can be only on the year-round destinations in major cities, for example in Barcelona, and capitals."