Montenegro is currently not only one of the best tourist destinations but also one of Europe's hottest real estate markets and this situation looks set to continue reports Lucy Russell

I n the past two years property prices have risen on average by 20 percent per year and in more specific locations they have risen by a remarkable 100 percent per year. Despite this boom in the property market, prices in Montenegro are significantly lower than in other Mediterranean countries, but they are steadily rising, thus conditions for investment are perfect.
The description of Montenegro as “the most beautiful contact between the earth and the sea” demonstrates how the low prices combine with the natural beauty of this country to make it an ideal place to invest. The rugged coastline and the soaring mountaintops mean that Montenegro, despite being small, can offer buyers a uniquely diverse range of properties. Whether you want a picturesque villa with a sea view or a house high up in the hills, Montenegro can deliver.

Tourist destination
With its rolling mountains, clear lakes, deep canyons and beautiful beaches, Montenegro is the perfect tourist destination all year round. Not only can one enjoy skiing and sunbathing but also hiking and white water rafting. It is no surprise then that the World Travel and Tourism Council cite Montenegro as the fastest growing tourist destination in the world by 2014, generating 21 percent of the country’s total GDP.

With this extraordinary tourist interest there has been a rising demand for real estates in Montenegro as these visitors realise what a fantastic opportunity there is for investment. Since it gained its official status as an individual country in 2006 the investments have been so big that, today, Montenegro is third in Europe in terms of per capita foreign direct investments.
Yet another attribute of this breathtaking country is that it is considered to be one of the world’s best nautical playgrounds and a project which is well on it’s way to becoming reality with a significant portion of its luxurious marina opening last month and the remainder of the master plan due to complete over the next five years. The project will transform the magnificent Bay of Kotor into a marina, which will have the ability to look after yachts of all shapes and sizes. Backed by a prestigious team of investors including Peter Munk, a gold mining tycoon, and Lord Jacob Rothschild, it is hard to imagine a result that will be anything but amazing.

Marina
On completion there will be 650 berths, 130 of which will cater to the needs of super yachts, as well as a vibrant waterfront community, which will include hundreds of flats and numerous bars, restaurants and boutiques. There could not be a better location for a project such as this as Porto Montenegro offers some of the best cruising in the Mediterranean basin with Corfu, Venice, and the Ionian Islands all nearby. Yet again the prices are irresistible with a berth costing €130,000 annually for a 75m yacht, in comparison to Antibes in France where a berth would cost about a €1million per annum.

Furthermore, there is no capital gains taxat all in Montenegro. Thus making foreign investment even more appealing to the overseas property investor. The introduction of a levy is planned for some point in the future but only at a rate of 7.5 percent, which is less than a quarter of the EU average. Therefore, the many opportunities for investment in Montenegro at the moment are, it would seem, too good to miss.

Lucy Russell is the Managing Director of Quintessentially Estates.

www.quintessentiallyestates.com