Montenegro, having gained independence in 2006, quickly ascended as a prominent tourist destination. By 2019, the number of visitors had swelled from 953,000 to a staggering 2.6 million. The allure of the Adriatic coast, coupled with the emergence of upscale hotels, shopping destinations, and fine dining, has repeatedly drawn tourists. However, with new property developments underway, visitors are finding reasons to extend their stays indefinitely.

Boka Bay

The epicenter of this luxury property boom is Boka Bay, a stunningly picturesque inlet from the Adriatic Sea. This area is not only a favorite for its scenic marina filled with yachts and cruise ships but also for its historical significance, with the town of Kotor recognised as a UNESCO World Heritage site. Annually, the bay welcomes around 500 ships, each loaded with visitors eager to explore its charm.

Porto Montenegro, Lustica Bay, and Portonovi

Within Boka Bay lie three large-scale marina residential developments: Porto Montenegro, Lustica Bay, and Portonovi, each at different stages of completion but all boasting residents and luxurious five-star hotels from global brands.

Porto Montenegro – Known for its glitz and glamour, this development attracts a youthful, fashionable crowd with its high-end shopping and luxury amenities.

Lustica Bay – The largest of the three, covering 690 hectares, offers a year-round living option, suggesting its suitability not just for holidays but for permanent residency as well.

Portonovi – Features expansive properties, including the extravagant One & Only villas, with price tags exceeding €10 million.

Each development offers a unique character and, according to Kieran Kelleher from Dream Estates Montenegro, “together they are more than the sum of their parts,” significantly enhancing the area’s global reputation.

Property Market Resilience

According to Kelleher, property values in these resorts have not only remained stable but have also seen a consistent rise in demand, even through the Covid-19 pandemic. This resilience highlights the enduring appeal and investment potential of these developments.

The Future Looks Bright

With developments like Synchro Yards and plans for Montenegro’s first 18-hole golf course designed by Gary Player at Lustica Bay, the area is set to expand its luxury offerings. Additionally, Portonovi, with its spacious homes and the distinction of housing Europe’s first One & Only hotel, underscores the upscale transformation of Montenegro’s property landscape.

Essential Information for Prospective Buyers

• Residence and Taxation: Following the closure of Montenegro’s Citizenship Investment Programme in December 2022, property owners can still apply for a one-year residence permit, with eligibility for permanent residency after five years. Both income and corporate taxes are capped at 15%.
• Property Transfer Tax: In 2023, the Real Estate Transfer Tax for resale properties was revised to a sliding scale from 3% to 6%, depending on the property value.

As Montenegro continues to evolve, it offers not just a haven for luxury seekers but also a robust investment opportunity, with its beautiful landscapes, growing communities, and the promise of a tranquil yet upscale lifestyle.