January 2011 February January 2011
Company Presentation Company Presentation
Savills Montenegro is the largest international Real Estate Services Business and most trusted brand in Montenegro and offers comprehensive and isprofessional in the area of sales and marketing, market research, project consultancy, the largest services Besides the traditional real estate sales AD, project company and the subsidiary development management international and such services, combining local market knowledge and global expertise. Savills Montenegro model, Savills Montenegro together with of Orascom Development Holding was established in 2004, with a goal of developing a company would lead the way in the emerging market of Montenegro Real Estate Savills is currently that retained by some AG on market research as well as the as regards providing confidence to all levels of investors, offering wraparound service and providing a partnership model S e r v i c e s of the top projects in aMontenegro to masterplan/detailed design of Orascom to clients whereby our business is an extension of theirs, with the expected strength and quality of service and expertise. Business and the most trusted brand in provide planning, strategic development Premium Holiday Resort in Lustica.
Montenegro, and offers comprehensive and and research advice to the relevant State traditional real estate sales model, Savills professional services in the area of Besides sales the authorities in Montenegro and to typically In September In September 2010 2010 Savills Montenegro Savills Montenegro with Savills won a prestigious and marketing, market research, project international together developers, as well as toislocal Montenegro won a prestigious 5 star award in the currentlyand retained by somemedia of theontop awardofin the category consultancy, development management international theprojects market and 5 star category Best Real Estate Agency in in Montenegro provide planning,atstrategic RESIDENTIAL Real Estate Agency and such services, combining local market trends. to Under consultation the moment of Best Montenegro and was chosen to be the development and research to the East, relevant Montenegro and was knowledge and global expertise. Savills are clients from advice the Middle Russia in Best Real Estate Agency in Europe by State authorities in Montenegro and to typically to be the Best of Real Montenegro was established in 2004, and the UK and include some of the chosen the selection committee the prestigious international developers, well as in to local and Estate Agency in Europe by – Europe with a goal of developing a company that highest profile as projects Montenegro. International Property Awards international media onthe theemerging market and trends. Under consultation at the moment are the &selection committee would lead the way in market Africa Property Awards of 2010. Savills clients from the Middle East, Russia and the prestigious International Montenegro of Montenegro as regards providing the UK and include some of the highest profile projects Property Awards – Europe & confidence to inallMontenegro. levels of investors, From the Property consultancy perspective, we’ll Africa Awards 2010. offering a wraparound service and Savills Montenegro is an international associate continue to expand our offer to ensure that our providing a partnership model to clients of Savillsour- business the Premier clients arethe receiving the full shopping list of whereby is anProperty extension Services of From consultancy perspective, we’ll Company and Sales Brand globally with a services to allow them to formulate the right theirs, with the expected strength and continue to expand our offer to ensure tradition more than 150 years, and 259 offices strategic business quality ofofservice and expertise. that our clientsandareinvestment receiving decisions. the full in 27 countries, and one of the top 4 real estate Andshopping from list the ofsales perspective, we’re services to allow them to companies globally, and listed on the London continually inventing new methodologies in Savills Montenegro is an international A sample of our client base in Montenegro formulate the right strategic business and Stock Exchange. to attractdecisions. end users to Montenegro in an associate of Savills - the Premier Property is the Russian development companywhich investment And from the sales increasing competing global market place. Services Company and Sales Brand globally Metropol and the island of Sveti Marko,everperspective, we’re continually inventing We like to see ourselves as setting the pace of with a tradition of more than 150 years, in Tivat Bay. Here, Savills plays the role new methodologies in which to attract end and 259 offices in 27base countries, and one In of usersand to innovation MontenegroininMontenegro. an ever increasing development advising on thechange A sample of our client in Montenegro turn, Savills andmanager, Savills Montenegro of 4 real estate companies globally, also master plan, and brokered coordinating partners’ competing global market place. We like is the thetop Russian development company introduced the hotel Contact: and listed and on the Stock as setting the pace of activities asBanyan builders Metropol theLondon island of SvetiExchange. Marko, deal with the such six star TreeBovis HotelsLend to see ourselves and innovation in Montenegro. ARUP,global architects changeResearch in Tivat Bay. & Lease, Resortsengineering and is thefirm exclusive & Consultancy Woods and cost consultants DavisBul. Sv. Petra Cetinjskog 1/A, 81000 Podgorica sales agentBagot for the project – That’s what In turn, Savills Savills Contact Here, Savills plays the role of weLangdon. call our wraparound service. and We also T/F: +382 (0)20.243.515 E: & info@sav-montenegro.com Montenegro also introduced brokered Research development manager, advising on the advise Lustica Development AD,and project Consultancy www.sav-montenegro.com Bul. Sv. Petra Cetinjskog 1/A, 81000 Podgorica the hotel with the six star Banyan master plan, and coordinating partners’ company anddeal the subsidiary of Orascom E: info@sav-montenegro.com Tree Hotels & ResortsAG and on is the exclusive T/F: +382 (0)20.243.515 activities such as builders Bovis Lend Development Holding market Sales & Marketing global sales agentasforthe the masterplan/ project – That’s P.C. Lease, engineering firm ARUP, architects research as well SalesMarinović, & Marketing 85318 Radanovići, Kotor T/F: +382 (0)32.302.308 what we call ofourOrascom wraparound service. P.C. Marinović, Woods Bagot and cost consultants Davis detailed design Premium 85318 Radanovići, Kotor E: info@sav-montenegro.com (0)32.302.308 E: info@sav-montenegro.com We also advise Lustica Development T/F: +382 Langdon. Holiday Resort in Lustica. BEST REAL ESTATE AGENCY EUROPE
www.sav-montenegro.com
MONTENEGRIN 2ND HOME MARKET - short overview Holiday home buyers are drawn to Montenegro for its attractive Mediterranean climate and natural beauty above all. Residential demand profile: The volume of property transactions in Montenegro peaked in 2007 at which point the onset of the global credit crisis saw UK and Irish buyers withdraw from the overseas property buying market as financing dried up, prices turned negative and confidence waned across Europe. In 2009, transaction levels shrank dramatically compared to their 2007 boom, however 2010 data for H1 only suggests a slight recovery in sales numbers. Buyers from eastern Europe have instead become the dominant force in the housing market, responsible for the vast majority of sales recorded by Savills Montenegro in 2008 (90%), 2009 (88%) and in 2010 (95%). This perceived dearth in supply
befitting buyers’ demand requirements is an important opportunity for potential new development coming to the market. It will be vital for developers to understand demand trends in the local area in order to effectively target buyers. At present, almost all demand is focussed on coastal locations. Current budget constraints and the fact that most buyers presently active in the market are not using mortgage financing to increase their spending power, mean that most demand is concentrated Nationality of buyers 2006-2010, Savills Montenegro transaction data
on compact apartment properties. Properties with proximity to the beach, with access to shopping areas, restaurants and bars are most sought after. In addition, property features such as balconies and terraces and parking provision are important in targeting today’s second home buyers.
levels and prices have seen some recovery in 2010, with transactions achieving almost €2,200/sqm (gross area) on average in 2010. Savills Montenegro achieved average price/sqm (€/gross area)
Residential pricing: The Montenegrin housing market has witnessed robust price appreciation in recent years, supported by a mixture of increased local demand and overseas interest in holiday homes in particular. Properties located in coastal areas lead the market in terms of values. According to Savills Montenegro data, prices peaked on average in 2007 at around €3,000/sqm. Similar to most overseas property destinations, the subsequent two years saw prices lose approximately a third of their value during the global credit crunch. However, both transaction
www.sav-montenegro.com
17