In late 2022, I took a scouting trip to Montenegro. It wasn’t a new market for us at Live And Invest Overseas; we’d already been established here for a number of years. Still, Lief sent me to meet with our local contacts, vet the developments we recommend, and establish new connections.
As I would on any scouting trip, I spoke to as many local real estate professionals as I could… from small-time agents to representatives from the high-end marina complexes. The goal was to glean as much insider information about the local market as possible—the type that internet research doesn’t yield… the type that you only get through word of mouth.
My main takeaway from that trip was this: If you want to make money with a rental investment in Montenegro, you should buy a property that’s in a nice residential complex that has amenities—a reception and pool, if not a gym, restaurant, and other perks as well. The nicer and more plentiful the amenities, the higher the potential rental returns you can earn.
There are a couple of reasons why this is the smartest type of investment in Montenegro:
- Demand for this type of rental is among the highest in the market.
- Amenities, especially pools, are coveted by renters. Having more and nicer or more unique amenities can give one complex a competitive edge over another.
- This is the easiest property type for a foreigner to purchase. There are some restrictions on land ownership among foreigners, which can complicate buying a standalone house.
On my trip, I toured a development in Kotor Bay that matched the description of a smart investment in Montenegro perfectly… It’s perched on the hillside above the city of Tivat, which means it’s bathed in sunshine and has spectacular ocean views. It’s in a quiet spot surrounded by nature and yet only a few minutes’ drive to the city and its conveniences.
It offers a range of property types, from studios with small terraces to three-bedroom penthouses with full-on gardens. I inspected each property type and was impressed by the luxury finishes and obvious care and attention that went into every detail.
The development is decked out with high-end amenities. It doesn’t have just a pool but a sea-view infinity pool overlooked by a swanky on-site bar and restaurant; it has an emphasis on wellness that sets it apart from anything in the area, with a yoga and pilates studio, plus a gym, jacuzzi, and sauna; it has ample parking spaces (important in this mountainous country where parking can be tricky) and a reception with 24/7 security and CCTV.
When I visited, the development was near completion… Only the finishing touches, like filling the pool with water and pulling protective plastic covering off surfaces and fixtures, were left to do…
Fast forward to today, and the developer’s vision for this project has come to fruition. Almost all of the inventory has been snapped up, and owners are enjoying the high occupancy rates the development consistently commands. Guests from all over the world flock here and make great use of the amenities.
My colleague visited the project in June of this year to celebrate the grand opening of the on-site restaurant. He reported back on the full rooms and lively scene—not only at the event but in the shared spaces as well.
The development has been so successful that only nine units remain unclaimed as of today. Despite property price increases throughout Kotor Bay, the developers are offering incredible value for Overseas Property Alert readers. Units start from just 108,000 euros plus the cost of a furniture pack if you opt to enter your unit into the development’s rental program. Reach out for more information.
One big benefit of investing in this opportunity is the fact that the development is already completed. This means that there’s much less risk involved relative to a pre-construction opportunity. There’s no risk of the construction delays or cost overruns that are common among pre-construction projects. All the regulatory hurdles (like permit approvals and certifications) that can hold up a pre-construction project have already been overcome.
On top of this, costs are more predictable since the development is already up and running. So, too, are your potential returns, since the market value is already defined. There’s far less speculation involved than there would be in a pre-construction opportunity, where the future market value can be uncertain.
Perhaps best of all, though, because this project is already completed, your unit is available for immediate use, which means you can start earning rental income right away. In a pre-construction investment, you might have to wait months or years for the project to be completed, which means you’re waiting months or years to generate investment income.
You should also consider the benefits of investing in Montenegro, a country on the rise. It’s on the brink of joining the European Union (by as soon as 2028, if all goes according to plan), which has the potential to boost property values way beyond their current levels. In other words, any investment you make now is almost guaranteed to appreciate significantly in just a few years.
That’s what happened in Dubrovnik, Croatia, which is right next door to Kotor Bay. Property values skyrocketed when Croatia joined the EU in 2013. Today, Dubrovnik’s property prices are extortionate, at $4,440 per square meter ($412 per square foot)—about 27% more than Kotor Bay’s current prices. Kotor Bay’s property prices should rise to at least match Dubrovnik’s when it joins the EU… maybe they’ll even go beyond them.
Another reason to invest in Montenegro right now is that a property purchase (of any value) can qualify you for residency. As a wave of golden visa program cancellations sweeps across the Continent, Montenegro remains a shining opportunity to get residency in Europe. And Montenegro residency today could become EU residency tomorrow, when the country joins the EU.
You should act quickly if you’re interested in Montenegro… whether you want to make a smart investment and claim one of the last remaining units at the development I toured, invest for residency, or enjoy the potential capital appreciation that may come with EU ascension. The opportunity won’t stay this good forever.
To smooth travels and successful property buys,
Sophia Titley
Editor, Overseas Property Alert