NEW BUYERS IN THE MONTENEGRO REAL ESTATE MARKET

REAL ESTATE MARKET

Villa in Djuraševići in Luštica

MONTENEGRO’S LUXURY PROPERTIES INCREASED IN VALUE

The current crisis has significantly affected the real estate market in Montenegro. According to Niko Laković, partner and executive director of Montenegro Sotheby's International Realty, the new circumstances will bring some new clients to Montenegro but also force investors to adopt new sales strategies

By:

PETRA VASILJEVIĆ

Photo:

MONTENEGRO SOTHEBY’S INTERNATIONAL REALTY

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ast year was very successful for the real estate industry in Montenegro. This is backed up by the fact that foreigners invested more than 250 million euros in real estate in this country in 2021, the largest yearly amount since 2008. Russian citizens invested the most (50 million euros), followed by Serbian citizens (33 million). In the new circumstances caused by the war in Ukraine and the sanctions imposed by Montenegro on Russia, the situation in the real estate market has changed significantly and is slowly taking on new trends, which we discuss with Niko Laković, partner and executive director of Montenegro Sotheby’s International Realty.

How did the crisis caused by the war in Ukraine affect the real estate market in Montenegro?

— All of this is, sadly, a really bad time for both nations, Russians and Ukrainians. Both continue to visit Montenegro, but there are now many more Ukrainians. There are currently around 20,000 of them, according to some estimates. Russians are also coming, but primarily as tourists; there are far fewer who want to buy properties. The Central Bank has limited the amount they can have in their bank account, and since Montenegro is in the SWIFT system, they cannot make payments to Montenegro.

Are Ukrainians buying more property in Montenegro now?

— They are primarily seeking rental properties. Both Russians and Ukrainians arrive with cash and request the lease of various types of real estate, causing rental costs to rise, particularly in some areas of Budva and Tivat. In practice, demand was so great that you could rent a beautiful two-bedroom flat in Porto Montenegro for 50,000 euros per year.

How did the situation affect real estate prices, and who, in your opinion, will be the primary buyers of properties in Montenegro this year? — Real estate prices are stable, with the exception of top-luxury real estate, which has increased by 10 to 20%. I expect that the sale of real estate will remain at a high level this year as well, given the fact that the citizens of Serbia and the region will probably invest the most in real estate in Montenegro. Sure, this situation will hit a certain niche of the real estate industry, but the demand is still high. People

Niko Laković, partner and executive director of Montenegro Sotheby’s International Realty

Villa in Djuraševići won BIG SEE award for architecture and design in 2020

A luxury villa overlooking the bay in Prčanj are getting rid of money because they are afraid of inflation and everyone wants to buy real estate. Investors have adjusted their strategies in response to the scenario. Resorts that can afford it allow foreigners, such as Serbian citizens, to pay 30 or 40% of the property’s value and move in immediately, then repay the rest in 36-month installments without taking out a bank loan.

How much does the crisis in construction materials affect the construction of new projects?

— All are recalculated and limit the validity of apartment prices. The price is valid for one month. And construction doesn’t stop. The luxury hotel SIRO Boka Place, which will be open next summer, is being actively built in Porto Montenegro. A hotel from the Marriott chain near the Old Town of Kotor, the Intercontinental Hotel in Čanj, the Radisson Blu in Bar and Galeb in Ulcinj are also under construction. In Kolašin, on the ski slope itself, the Swissôtel is opening, while the Westin hotel is still under construction. As part of the Luštica Bay project, new hotels and an 18-hole golf course are being built. The unique selling point is that players will have a view of the sea from every point on the course. The next big project that is expected is the beginning of the construction of the Four Seasons Hotel on Plavi horizonti. Bigova Bay in Kotor is a large project on 300 hectares. There will be several world-famous brands and operators.

Your portfolio consists of luxury real estate that you find for prestigious clients from all over the world. Do you have any new pearls on offer?

— We currently offer a designer apartment of 600 square meters within the Nikki Beach resort near La Perla in Kaludjerovina, across from Porto Montenegro. The owners of the apartment are art collectors, and they have spectacularly decorated it. There are several residential complexes above Sveti Stefan, each with four to five luxury villas with swimming pools. The value of such a complex is over 10 million euros. We also have historic properties, such as the 17th century Mrša Palace in Perast. We also offer several properties that have won awards for architecture. These are residences on the water itself, with access to the sea, whose value ranges from 7 to 14 million euros.

How satisfied are you with doing business in Montenegro as a branch of the world-famous agency?

— We had a very successful last year. We are intensively developing the system. We have opened an office in Budva, in addition to the main office in Porto Montenegro. We invest a lot in marketing and new technologies to be at the level of London or Paris. We have a strategic partnership with Sotheby’s branch in Croatia and now with a newly opened office in Belgrade. Together, we cover the entire former Yugoslavia, expecting to be the leading force for luxury real estate in the region.

A luxurious penthouse in the Nikki Beach resort