Photo: PixabayBuilding and selling luxury real estate is actually the building and buying of dreams, and it is no coincidence that the luxury real estate market has experienced strong growth in the last few years. This can especially be seen in Montenegro, where the development of this segment began more than 15 years ago, when foreigners discovered Montenegro and its investment potential.
Although during the previous two years there was a crisis caused by the coronavirus pandemic and then the war in Ukraine, investments in the real estate sector increased significantly this year in Montenegro, eKapija writes. Namely, the total inflow of foreign direct investments from January to the end of July this year amounted to 653.47 million euros, 44.53% more than in 2021. Of this, as shown by the data of the Central Bank of Montenegro, 238.03 million were invested in real estate euros - as much as 100.25% more compared to the same period last year. Germans invested the most in real estate in the first eight months - 39.55 million euros. Citizens of Russia follow with 31.87 million euros, and Serbia with 28.49 million euros.
The strong development and potential of the real estate market was recognized by Sotheby's Realty, the global leader in luxury real estate, so they opened their representative office in Montenegro.
As Niko Laković, executive director and partner of Montenegro Sotheby's Realty, said recently in an interview for eKapija, the luxury real estate market is stable despite all the crises.
"The market is currently very strong and we expect a good trend in the future as well." "Interest in Montenegro is taking the form of a mature market, the trend of interest is stable and as far as projects are concerned, I see that Montenegro is gaining more and more value as a destination," said Laković.
Nataša Grdinić, executive director of CMM Investment Consulting Group, agrees with him.
"Investors' interest in Montenegro has been growing steadily in recent years, and the crisis in the whole world has resulted in an increase in interest in buying real estate." Currently, construction and tourism are the most developed branches in our country and the most accessible for investment, and therefore the most popular," Grdinić said.
The development of the luxury real estate market began in 2005. Interest in this market was first shown by the British, and then valuable investments from Russia followed. The turning point in development is certainly the construction of the Porto Montenegro complex, which with its marina, real estate offer, hotel facilities and numerous brands has completely changed the image of Montenegro as a destination. This project was only the first in a series, so the realization of new investments soon began. Now, the tourist resorts Luštica Bay, Portonovi, and Dukley Gardens are being successfully developed on the coast, the construction of the Bigova Bay complex is expected to begin, as well as the arrival of new luxury hotel brands.
Also, the construction of condo hotels, condominiums, villas, and apartment buildings, which, in addition to the contents intended for tourism, also offer the possibility of purchasing accommodation units, is becoming more and more popular. This is exactly the new construction trend when it comes to real estate in Montenegro and the entire region. This stems from the fact that buyers of luxury real estate want to get the whole package - good location, quality and service.
"And they'll be happy to pay for it." They want to buy something that they will enjoy and that they won't have to worry about too much. The space became very important during covid, the accessibility of the location, nearby services, but also the energy efficiency and integration of the facility in the environment. That's why I think that condominium projects have a bright future, because people value their time - said Oliver Szocs, an independent property consultant.
Slavica Milić, senior marketing manager in Porto Montenegro, is of the same opinion, who pointed out at the same conference that buyers of luxury real estate are looking for an extraordinary experience, which needs to be created, because it builds both the destination and the product itself.
"There are currently three current trends related to the purchase of luxury real estate: lifestyle, investment and wellness, that is, our real estate must be something more, it must be our place to live, work and enjoy, do sports," she stated.
And Niko Laković believes that people are losing enthusiasm for buying real estate in which they will not have any services.
"That type of project is becoming a thing of the past, and everyone who builds in the future will have to do facilities with facilities, reception, maintenance, swimming pools, gym." People are increasingly realizing the advantages of living by the sea, especially in resorts, and I am quite sure that less and less classic buildings will be built, and more and more settlements and resorts with additional facilities. It's simply a trend that all investors will have to follow - Laković said recently for eKapija.
CMM Investment Consulting Group is developing exactly such projects.
"All our projects are closed resorts, with many facilities such as outdoor and indoor swimming pools, conference rooms, spa area with sauna, Turkish bath, salt room, children's playrooms, relaxation yoga area," Nataša Grdinić said.
GOLDEN PASSPORTS BROUGHT INVESTORS TO THE NORTH
In addition to the coast, the intensive construction of condo hotels, apartment and residential-business buildings also began in the north of Montenegro. The reason for this is the economic citizenship project that was launched in 2019. A total of 779 applications were submitted for the golden passport, of which 168 were approved, 73 were rejected, and the rest are in the process of processing. As part of the program, 14 hotel complexes will be built, eight of which will be in the north. Thus, seven hotels will be built in Kolašin, one in Žabljak, and two each in Budva, Tivat and Bar. With the last two projects that the government added to the list last week, the total investment of investors in these hotels should exceed 400 million euros, and the capacity will be over 2,500 accommodation units.
As Niko Laković points out, the economic citizenship project had a lot of positive effects, so the construction of luxury resorts started in places where, had it not been for that, those hotels would probably never have been built. Thanks to that project, brands such as Swiss hotel, Westin, IHG are now coming to the north of Montenegro. Aman is coming to Žabljak, and the construction of the Chedi Hotel is also planned.
Although this project has brought Montenegro 310 million euros so far, according to recent data from the Investment Agency, it has not been approved by the European Union, and will be terminated on December 31 of this year.
Source: ekapija.com
