Photo: sothebysrealty.me A favorable investment climate and high-end projects, such as Porto Montenegro, which has positioned this region of the Adriatic as a top nautical destination, allowed not only the most prominent brands to come to Montenegro but also wealthy clients in their pursuit of trophy real estate. That is why the renowned house Sotheby's entered the Montenegrin real estate market, bringing it closer to wealthy collectors who do not ask for a price when it comes to high-end artwork and real estate. According to Niko Laković, partner and executive director of Montenegro Sotheby's International Realty, this year has been very successful for the real estate industry in Montenegro, with a fresh wave of investments and the arrival of prominent companies.
NIKO LAKOVIĆ, MANAGING PARTNER AND SALES MANAGER AT MONTENEGRO SOTHEBY’S INTERNATIONAL REALTY
According to the data of the Central Bank of Montenegro, in the period January-August, foreigners invested 153.15 million in real estate in Montenegro, with the majority of investors coming from Russia (31.46 million) and Serbia (23.17 million). What does this information look like from your insider point of view?
Serbia is a strategic market for us. We do about 60 percent of sales with clients from Serbia. People from Serbia traditionally feel at home here and we are only half an hour away by plane. At the same time, we have fantastic projects, such as Porto Montenegro, Luštica, Portonovi, Dukley Gardens, where clients have great comfort. They are mostly looking for high-quality flats in apartment complexes with rising property values, where maintenance is given, which they may rent, with a sea view, and close to the beach or marina. People are increasingly buying real estate in Montenegro in order to work from here since they enjoy a completely different quality of life in a house or apartment by the sea.
How successful has this year been for the real estate industry in Montenegro and are there new trends?
The business year was a huge success, and the most noticeable trend is that people realized that the conventional model of developing ordinary residential structures is going down in history. People who buy real estate on the sea have higher expectations. They expect it to be in a complex with a swimming pool, reception, and a caretaker, so that they can relax and not worry about their real estate while in their home country. As a result, we usually advise developers to opt for this form of construction, as regular residential structures are less valuable and more difficult to sell.
According to one analysis, one million dollars could buy 15 square meters in Monaco, 31 square meters in London, and 330 square meters in Belgrade and the Montenegrin coast. What potential does Montenegro have in terms of improving real estate value?
The country's image is extremely important because the real estate market is so volatile. Political stability is necessary, as is a decisive move toward European Union membership. Our real estate prices will rise at that time. The presence of well-known brands in the country also influences the price, and there is a new wave on the way. We are expecting the arrival of Rosewood, one of the world's top five hotel brands. The first Marriott hotel will be constructed near Kotor's Old Town. In Risan, the Hotel Teuta is being refurbished, and Mövenpick will be there. I am hopeful that the Ritz-Carlton project for a resort in Luštica will be realized.
What else in Montenegro's luxurious portfolio do you find particularly appealing?
Porto Montenegro is highly appealing. New projects are expected to be announced by the owner, Dubai's ICD Corporation, one of the world's largest investment funds. A golf course with residential units is being built by Lutica Bay. Every point on the course has a view of the sea, which is unusual. The Bigovo Bay project is also in full swing and there are signals that the Four Seasons project on the Blue Horizons will finally be launched. There is also the island of Sveti Marko, across from Porto Montenegro, a unique luxury five-star resort, where some famous developers are expected. The Radisson Blue resort in Bar is also under construction. All of the projects mix hotel complexes with residential units, ensuring that clients' investments are safe.
VILLA SMOKVICA IN REŽEVIĆI
Which pearls would you highlight in your Montenegro Sotheby's International Realty offer?
We have a Rothschild-owned apartment in Porto Montenegro that measures 400 square meters on one level and is on the first line of the sea. We have a lovely villa with eight bedrooms on the seafront in Ljuta. It has 35 meters of shoreline and a beautiful 21-acre plot. A 17th-century palace, a historical building of 1,300 square meters and arguably one of the most stunning palaces in the Mediterranean, is also offered.
How do clients from all around the world find the luxury real estate that you offer?
We are a member of the Sotheby's group, which has offices in 75 countries. We have 24,000 agents and are connected with the house Sotheby's. Everything we publish on the Sotheby's website is distributed to Bloomberg, the Financial Times, the New York Times, and 50 other major global news outlets. We presented Montenegro in places it had never been before. Last year, our agency offered a villa that Mansion Global magazine ranked among the five most sought-after luxury residences. That is Villa Smokvica, near Reževići, a stone building from the 14th century.
What is the advantage of the luxury portfolio of Montenegro compared to other Mediterranean countries?
We are still very competitive with the prices of such palaces, which go directly to the sea, which is not very common. Furthermore, anyone purchasing real estate in Montenegro receives the same ownership treatment as a Montenegrin citizen. Montenegro's profit tax rate is 9%, which is quite low when compared to other countries. All European capitals are within two hours of us. All of this makes real estate investment on the Montenegrin coast particularly appealing.
Montenegro Sotheby's International Realty was recently recognized the best real estate agency in Montenegro by the European Property Awards, and their website, sothebysrealty.me, was named the best in its category
Text: GORDANA KNEŽEVIĆ MONAŠEVIĆ
