OFFER

As Montenegro’s first residential golf community, The Peaks is an important milestone for both the real estate market and the sport of golf – not only in Montenegro but in the wider South-East European region.

COLUMNIST: NIKO LAKOVIC Managing Partner, Montenegro Sotheby’s Real Estate

irst, increased global wealth is driving demand for prime real estate – and that has had a marked impact on Montenegro, which is seen by many as a safe financial haven. As evidence, the overall volume of sales in this country in 2022 was 30 percent higher than the previous year, and prices are increasing steadily, year-onyear. This change is market-wide but is particularly pronounced in the high-end sector. Second, the upheavals of the past three years have prompted many people to re-think their lives and priorities, seeking green spaces, wellness and the opportunity to work remotely – in peaceful environments where nature, fresh air, open spaces and five-star services come as standard.

While it's obvious that residential golf communities hold a strong appeal for golfers, it’s important to note that, globally, about 65 percent of homeowners in these communities do not play the sport. As a global network of property experts, Sotheby’s has had decades of experience working with golf-based real estate around the world and we know that the best developments transcend golf; they offer an abundance of other sport and leisure facilities, good dining and entertainment, and other conveniences such as shops and concierge services. By creating an environment that is both peaceful and secure, these developments attract a wide range of homeowners, including full-time residents at various life stages –families, professionals, and the retired – as well as second- and third-home owners. As a result they are vibrant, living communities all year round, and foster a genuine sense of belonging. Without this, for non-golfers, a course is nothing more than a green space that supports the price of the real estate surrounding it.

Naturally, in the best of these developments, the golf course is world-class. A course that offers an irresistible golfing experience will help to achieve a project's real estate goals and leave a lasting legacy. However, it’s crucial that the course and residential sectors are thoughtfully integrated, through intelligent and sensitive land planning. In the best developments, the golf course elevates the residential offer – and vice-versa. The result is a cohesive community and beautiful environment, where residents can enjoy a wonderful lifestyle alongside exceptional golfing facilities – if they choose to play.

Luštica Bay’s plan for The Peaks excels on all of these points. Centred on a Gary Player-designed championship course, the Master Plan is using the magnificent terrain in an interesting way, preserving the natural features of the site while configuring the residential plots to create desirable homes that seamlessly coexist with the golf course. For us at Sotheby’s, this makes it a highly attractive offer that is equal to and, in several ways, superior to many of the finest golf communities around the world. When we brought our colleagues from 14 of Sotheby’s European offices to visit the project, they were unanimous in finding it an impressive and very appealing proposition to market to their own audiences.

Aside from the exceptional lifestyle benefits – whether as a primary residence or second home – The Peaks is a compelling offer in investment terms. For prime real estate, Montenegro is still a very young market, with a lot of potential – and room to grow as it increasingly attracts interest. Prices are still affordable in relation to comparable properties in more established markets in Europe and North America, and all indications are that they will continue to rise in the coming years as the market matures. In terms of capital appreciation, it’s important to note that the developer of Luštica Bay, Orascom Development Holding has a sterling reputation internationally, and is making a very significant investment in infrastructure in and around Luštica Bay, to support the real estate development. As a golf community, The Peaks has the added advantage of rarity: thanks to the rugged terrain of this region, the potential for any similar developments is extremely limited.

In today's search for less developed and crowded destinations, the novelty of Montenegro adds to its allure. This, combined with the increasing demand for golf tourism – including new playing experiences on new courses – presents an interesting opportunity for rental income. Golf tourists often stay longer and prefer the flexibility of villas or apartments over traditional hotels. The option to join Luštica Bay's rental management programme enhances the investment proposition not only for pure investors but also for second-home buyers who can enjoy the lifestyle benefits while in residence and earn rental income when they are away.

The Peaks offers an enticing blend of premium-quality homes, attractive pricing, and stunning natural surroundings, making it a great choice for both primary and second homes. With ample space and privacy for family and business life, as well as leisure activities, it is a beautiful retreat. Beyond the potential for capital appreciation and rental income, the true return on investment lies in the quality of life it offers – intangible benefits that are just as valuable as the financial gains.