Montenegro, the hot new playground for the super-rich by Supr Prime Property Advisor, Eric Corsaletti
Smart marinas and gorgeous hotels are making this tiny Balkan country the latest luxury destination for the super-rich
Gliding across the azure waters in a classic motorboat offers an air of undeniable glamour, especially when surrounded by majestic mountains and quaint villages with terracotta roofs lining the shores. The journey from Porto Montenegro’s radiant marina to the iconic Bay of Kotor presents a breathtaking panorama; navigating the bay’s entrance reveals Perast’s charming stone houses, set against the backdrop of towering mountains. This scene, reminiscent of a Norwegian fjord under the Mediterranean sun, is truly a sight to behold from the sea.
Such opulence, sophistication, and affluence are precisely what Montenegro aspires to offer its visitors. Through its ambitious tourism strategy, this compact nation, spanning just 13,000 square kilometres with a population of 600,000, aims to become a rival to Monaco, attracting Europe’s elite and the world’s wealthiest.
The Montenegrin coast is rapidly developing, adorned with marinas, luxury accommodations, and a plethora of new homes, alongside a comprehensive infrastructure that includes everything from high-end boutiques and eateries to medical facilities and educational institutions. The race to acquire land by the globe’s premier hotel brands is a testament to Montenegro’s burgeoning status as a luxury destination.
How (and why) to Buy a Luxury Property in Montenegro
Who is investing in Montenegro’s real estate, what are their origins, and what priorities guide their purchasing decisions?
For more than a decade, Montenegro has emerged as a sought-after destination, celebrated not just for its vacation allure but also as a prime locale for property investment. The country’s inviting climate, renowned hospitality, an array of fine dining options, and unparalleled natural beauty continue to captivate international interest.
There’s a local adage that those who visit Montenegro are bound to return, a testament to its irresistible charm. What could be more fulfilling than coming back to a place you can call your own?
This draws an increasing number of international buyers to seize the advantageous financial terms offered, opting for their slice of heaven in this stunning European country. Even amidst other popular destinations, Montenegro’s luxury properties remain more accessible, promising a blend of dream realization and the enjoyment of life-enhancing amenities, extending beyond just a holiday retreat.
Who, then, are these investors in Montenegro’s property market, and what drives their purchases? Recent FDI figures provide some insights. “The largest group of investors are coming from Serbia,” shares Eric Corsaletti, VP and Head of the Private Office at Nest Seekers International. “Following closely are investors from Germany and the United States, many of whom originate from the former Yugoslavia.”
FDI (foreign direct investment) data show that Serbian citizens invested 78 million EUR in Montenegrin real estate alone in 2023. Russians are in second place with 56 million EUR, and third place is “shared” by Germany and Turkey with 51 million EUR. The list also includes citizens of the USA, Ukraine, Switzerland, the United Arab Emirates, the Czech Republic, and Austria.
Nest Seekers has established partnerships with three significant developments in Montenegro and has experts stationed on-site. For further details, please reach out to us.
The flourishing real estate sector in Montenegro, more robust than ever since the 2008 financial crisis, owes much to its ability to attract affluent clientele and the development of new luxury complexes that capture global attention.
“Montenegro offers some of the lowest tax rates in Europe for both businesses and individuals, no capital movement restrictions, and a cost of living substantially lower than in Western Europe or North America. Starting a new company here is remarkably straightforward,” Corsaletti notes, emphasizing the government’s equal treatment of foreign and domestic investors.
Let’s add that the standard property tax rate ranges from 0.25 to 1 per cent of the market value on an annual basis, except for exceptions when it amounts to up to 5 per cent. This means that all buyers will be able to get the most out of their investment and achieve a higher return.
Various luxury hotel brands
On top of the Regent, One & Only resorts, the Chedi, more hotel brands are entering the market, which will result in Montenegro having a higher concentration of luxury resorts than world-famous Croatia:
The Intercontinental Hotel and Resorts is working on a project near Bar.
The same hotel group recently announced it will open a Crown Plaza in the north of the country near the ski slopes of Kolasin
Hyatt Regency inaugurated a resort in Kotor Bay in 2023.
Hilton is working on a second Montenegrin hotel in Ulcinj after its first project in the capital city of Podgorica
Marriott has plans for a Ritz Carlton on the Lustica peninsula, though there are delays. But it’s clearly on their mind with pre-agreements having been signed.
Spotlight on Key Developments
- Luštica Bay: Known for its golf residences and interest-free five-year property repayment plans, offering panoramic Adriatic Sea views.
- Portonovi: Luxurious apartments and villas with a five-year repayment plan, emphasizing luxury living with a comprehensive property management program for homeowners.
- Porto Montenegro: The pinnacle of luxury real estate, featuring exclusive residences, a five-star hotel, and a wide range of amenities. Properties range from €15,000 to €24,000 per square meter, showcasing Montenegro’s position as a leader in luxury real estate.
https://www.portomontenegro.com
Moreover, Montenegro is pioneering in Europe by allowing real estate purchases with cryptocurrencies, providing an innovative avenue for investors.
Porto Montenegro
Porto Montenegro
Porto Montenegro, often hailed as the jewel in Montenegro’s luxury real estate crown, epitomizes the country’s ambition to cater to the super-rich. With its sophisticated marina, luxury boutiques, and waterfront residences, it’s a vibrant testament to Montenegro’s luxury lifestyle offering. The development’s success has spurred further investment in the area, promising even greater growth.
Porto Montenegro recently announced its most exclusive project to date. The Synchro Yards, built on the site of a former shipyard, includes exclusive residences with sunset views over the bay, and a unique five-star hotel IVO.
In the Aeris building, with 22 residences on five floors, you can find one-bedroom, two-bedroom, three-bedroom or four-bedroom apartments and penthouses, and in the Aurora building, part of IVO 5* Hotel & Residences, owners are waiting not only for several pools and restaurants but also a global network of privileges.
Prices range from 15,000 EUR to 24,000 EUR per square meter.
Porto Montenegro
Aeris https://www.nestseekers.com/3421759/aeris-synchro-yards-porto-montenegro
Porto Montenegro
Aurora https://www.nestseekers.com/3422593/aurora-residences-ivo-synchro-yards-porto-montenegro
Emerging Luxury Developments: Luštica Bay and Portonovi
Beyond Porto Montenegro, developments like Luštica Bay and Portonovi are gaining attention for their unique offerings. Luštica Bay, with its world-class golf courses and stunning Adriatic views, offers a serene escape, while Portonovi, with its partnership with the One&Only brand, adds a new dimension of ultra-luxury living. Both projects offer attractive financing plans, making luxury living accessible to a broader range of investors.
Lustica Bay
Lustica Bay
Luštica Bay, a residential complex that captures both admiration and plans, offers an unparalleled opportunity with its five-year, interest-free real estate repayment plan. This allows for the unique option of either moving into or renting out its stunning seafront properties before completing payments.
Take, for instance, The Peaks, a premier golf residence providing breathtaking panoramic views of the Adriatic Sea and its meticulously designed golf course by the renowned Gary Player. Here, a 106-square-meter two-bedroom apartment is available for purchase at 740,000 EUR under a buyer-friendly repayment scheme. With just a 10% down payment required, the remainder is spread out into 15 quarterly payments over five years.
Lustica Bay
Portonovi
Portonovi
Portonovi extends to prospective owners globally a five-year repayment framework, necessitating a 20% initial deposit for its apartments and villas. Consequently, an opulently appointed one-bedroom apartment within the Marina district, spanning 82 m2, is available for purchase for as much as 755,000 EUR. Those viewing luxury real estate as both a path to a serene, rewarding lifestyle and a sound investment will find the homeowner property management program in Portonovi especially appealing.
Portonovi
https://www.nestseekers.com/3494501/portonovi-village-residences
One & Ony branded residences
https://www.nestseekers.com/3494499/oneonly-portonovi-montenegro
The Future of Montenegro’s Luxury Real Estate
Montenegro’s real estate market is characterized by a healthy mix of luxury residential developments, attracting both lifestyle purchasers and investors. With tax incentives, ease of business, and a government eager to attract foreign capital, Montenegro is well-positioned for sustained growth.
Nest Seekers International, under the guidance of experts like myself, is at the forefront of connecting discerning buyers with Montenegro’s most prestigious properties. Our deep understanding of the market, coupled with an unmatched portfolio of luxury properties, makes us the go-to partner for those looking to invest in Montenegro’s bright future.
Increasing number of residents in Montenegro
There is a big shift in demographics happening in Montenegro that isn’t quite captured by government statistics, but which is extremely important to understand.
Though Montenegro is very dependent on tourism, it is becoming less so. Why? Because an increasing amount of people are moving to Montenegro full-time. The full-time population of Montenegro unofficially grew about 10% since the start of the war in Ukraine.
These are the typical archetypes:
Russians fleeing conscription or who want to work online without getting banned from payment processors and online platforms due to Russian residency. Many entrepreneurs as well are starting local businesses.
Ukrainians who are independently wealthy or work online. Ukrainians who want free government money or a job move to Western countries. But people who are independently wealthy or work online prefer low-tax countries such as Montenegro. Montenegro has the highest number of Ukrainian refugees per thousand inhabitants in all of Europe.
Turks who disagree with politics back home. All are entrepreneurial and are starting local businesses.
Right-leaning Western Europeans who disagree with politics back home and want to live in a country that leaves them alone. Many moved to Montenegro during COVID-19 as the restrictions were minimal and poorly enforced. Many more moved after the Ukraine war started. They flee what they perceive to be censorship in their countries.
Western Europeans who want lower taxes and/or a lower cost of living. As inflation ate away at people’s savings in Western Europe, many realized that one way to beat inflation is to lower one’s tax bill and living expenses. It’s important to note that Montenegro offers both low taxes and a low cost of living as long as one avoids the luxury resorts mentioned earlier.
Anglos (Americans, Canadians, Australians, Brits, South Africans, etc) who want to live in Europe but realize that obtaining residency in the EU is often hard and/or not tax-friendly. In comparison, it is very easy to obtain residency in Montenegro as this article demonstrates.
All these people are much better than tourists. Some pay income tax, and social security taxes, but all pay VAT and drive the local economy through year-round consumption. These immigrants are all a net positive for the economy. They barely use any social services and instead consume locally, pay taxes, start businesses and are overall a true blessing for the Montenegrin economy which is now much more vibrant. The international school business is booming in Montenegro with several private English and Russian schools along the coast.
Effectively, the Montenegrin economy has become a lot less seasonal. We’ll see this in some real estate figures a bit below.
Also important to note is that all these people are fleeing something. If you believe that we are in an increasingly chaotic world with more people leaving their home countries, Montenegro is set to become a net beneficiary of such a trend.
Great for Digital Nomads
This is a big boon for Montenegro. Many digital nomads are very happy to spend a few months every year in Montenegro. It’s affordable, the weather is great, and there is a lot to do.
Importantly, Montenegro is outside of the Schengen zone. Effectively, this attracts a lot of relatively high-earning digital nomads from North America and other countries who cannot spend more than half the year in the Schengen zone. They thus come down to countries such as Montenegro to recharge their “Schengen days.”
Prospective EU membership and extensive infrastructure development
Ever since I’ve been coming to Montenegro people have been saying Montenegro will join the EU. First I was told 2022, then 2023, then 2025, then 2028, and now I hear 2030.
The lesson is, don’t listen to real estate agents when they come up with overly optimistic forecasts.
The reality is that Montenegro has been doing great without the EU and that prices of real estate have risen without EU accession. For now, Montenegro seems to benefit from the EU development aid and free infrastructure, as well as implicit financial support, without losing its tourism-, immigration-, and business-friendly orientation, which is the key to its success.
Conclusion
As Montenegro continues to evolve into a prime destination for the wealthy, it offers a unique blend of natural beauty, luxury living, and significant investment opportunities. From the stunning bays of Kotor to the upscale developments of Porto Montenegro, Luštica Bay, and Portonovi, Montenegro is carving out its niche as the ultimate destination for those seeking the epitome of luxury and an unmatched quality of life. With its strategic location, favourable economic conditions, and burgeoning luxury real estate market, Montenegro’s ascent as a top choice for the world’s affluent is just beginning.
Join us on this journey into luxury, investment, and unparalleled living experiences in the heart of the Mediterranean.
To read
https://www.businessinsider.com/millionaire-lifestyle-montenegro-yachts-luxury-photos-2019-4
https://thesuperyachtlife.com/journeys/montenegros-rich-past-promising-future/
https://www.thetimes.co.uk/article/montenegro-the-hot-new-playground-for-the-super-rich-6kt2ls326
https://www.ft.com/content/7250ef06-10bf-11e4-b116-00144feabdc0
Nest Seekers Super Prime Division
Eric Corsaletti — VP, Head of The Private Office
