The Luxury Network International Magazine Issue 15
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London, Luštica Bay, the rapidly<br />
expanding Montenegrin marina<br />
town, is reporting a staggering<br />
86.3% in average prices in<br />
the completed Marina Village since<br />
sales started in 2012. Construction<br />
is now focused on Centrale, the<br />
commercial and administrative hub,<br />
and culture centre. Upon completion,<br />
the coastal town will feature<br />
2,000 residences, seven hotels, two<br />
marinas, an 18-hole golf course, and<br />
lifestyle facilities.<br />
<strong>The</strong> €1.1 bn marina development,<br />
which is the first greenfield development<br />
in Montenegro, boasts<br />
some of the lowest square metre<br />
prices in Europe, with average<br />
rental yield in Montenegro reaching<br />
approximately 7.5%. <strong>The</strong>se returns<br />
compete with many European<br />
countries, and are even higher than<br />
Croatia, Spain, Portugal, Cyprus and<br />
Greece, and only beaten by Moldova<br />
and Ukraine, neither of which can<br />
compare with Montenegro’s natural,<br />
tourism and economic potential.<br />
According to industry sources,<br />
such as Dream Montenegro (Savills<br />
Associate), the prices of non-prime<br />
homes in the coastal region, have<br />
risen from 1000 to 3000 EUR per sq<br />
m due to the influx of luxury residential<br />
developments.<br />
A key attractive benefit is that buying<br />
property in Montenegro, whatever<br />
the value, comes with a oneyear<br />
residence permit. Additional<br />
financial perks are that the tax system<br />
has become one of the most attractive<br />
in Europe, with a flat-rate<br />
income and 9% corporate tax. Buying<br />
and registering property is easy,<br />
and foreign investors are treated as<br />
equals with Montenegrin citizens.<br />
Furthermore, buying and selling is<br />
always conducted in Euros, so there<br />
is limited foreign exchange risk. Another<br />
alluring factor for some is that<br />
Montenegro is likely to be the next<br />
country to join the EU, although<br />
their currency is already the Euro.<br />
Ahmed Zaki, Head of Sales & Marketing<br />
at Luštica Bay commented<br />
on the impact of this exponential<br />
increase in interest in Montenegro<br />
on the world stage: “<strong>The</strong>re has<br />
been a staggering Y-O-Y increase<br />
in sales at Luštica Bay of more than<br />
100%, with a significant shift in<br />
demand for more expensive units,<br />
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