Anyone considering investing in property in Montenegro for investment opportunities will be drawn to the area of the Adriatic coastline as it offers the best rental returns from the visiting tourists. Although the mountains also look attractive with the increased likelihood that more investment will be made in ski resorts, as yet the infrastructure to arrive at such resorts still needs much improvement.
Tivat is a very popular town on the coast which has the advantage of having Tivat airport just 4kms outside the town. It is a town which boast 16 different beaches and is near to the small islands of “the Isle of Flowers” and “St Mark and Our Lady St. Mark’s Island”. The sea offers the chance to hire a boat or sail, and sports on offer are scuba diving and underwater fishing. The beaches are surrounded by mountains and the town is within easy reach of many other charming Montenegrin towns.
The Grbalji plain connects Tivat to Budva, just ten minutes away, and Tivat is also linked to the heritage harbour town of Kotor by a tunnel which runs under Mt. Vrmac. In addition Tivat is close to the Croatian border and to Bosnia and Hercegovina. Tivat is the smallest town in the Bay of Kotor yet has a rich cultural center which includes an open air theatre, and the Tivat Cultural Center which houses a gallery, museum, theatre and cinema. Tivat Town Park is acknowledged for its natural beauty.
Investors may choose to single out Tivat as a prime location due to the investment which is being made into the port of Tivat which will transform it into a 700 berth yacht marina and thus attract many foreign tourists to the area. Investment in the town makes it an obvious choice for those who want to see a good capital return on their investment coupled with the immediate ability to earn a steady rental income from tourism which is expected to rise enormously within the next decade. The World Travel and Tourism Council rated Montenegro “as one of the top two fasting growing tourist economies of the next decade”.
Currently Tivat is a buyer’s market as prices peaked then dropped several years ago as property prices boomed too quickly prior to the recession. They are now likely to rise again and investment in the area can be an excellent choice if one really searches round for sound prices rather than those which remain too high. Apartments along the coastline with unrestricted sea views are available for less than 100,000 Euros though prices can be more than twice that much.
One just finished development in Tivat which offers one and two bedroom apartments has the added bonus of communal gardens and swimming pool and is completed to high standard. Prices start from under 200,000 but agents take advantage of opportunity and the same 2 bedroom penthouse apartment in the development ranges from 259,000 with one agent up to 351,000 with another. Prices are expected to be negotiable particularly for cash purchases with the buyer having the current advantage over the seller.
Due to the stall in development of off plan properties which usually offer such good returns it may be wiser to consider buying off plan only if the developer has some guarantee in place of completing by the deadline, with penalty clauses in favour of the buyer if the project overruns.
The area also features new houses and villas for sale, but the prices of older properties which need renovation are laughable as investment opportunities compared to similar properties in other European hot spots. For investment returns apartments appear to be the soundest buys due to the rental income opportunity.
Investors really have a second chance to enter the Montenegrin property market if they focus on properties which have dropped in value during the recession, or newly completed properties which are finished to excellent standards. Whilst price rises are expected to be slower than in the previous boon they should offer long term growth as the country invests in and promotes more tourism. Tivat appears to be an excellent choice for those considering investing in the Montenegrin property market.