Why Speculators are Buying Property in Tivat in Montenegro

Apparently Romania, Poland and the Czech Republic are the places to invest in 2007 for those seeking steady gains with Turkey, Egypt and Morocco hot for anyone with a little more risk tolerance…but then why are the really savvy investors buying property in Tivat in Montenegro and keeping quiet about it?

Tivat - with its fairly industrial image, with its out of service ship building yard, abandoned naval enclosure and fairly serious environmental issues - is a little known secret that is about to become a well known and well healed resort with a 700 berth luxury yacht marina and an international airport – that’s why speculators are buying property in Tivat in Montenegro!  Want to know more?  Then read on…

In October Canadian Peter Munk, chairman and founder of the world’s largest gold mining corporation and chairman, CEO and founder of one of the largest real estate investment trusts listed on the New York Stock Exchange satisfactorily concluded extensive talks with the Montenegrin government to purchase and redevelop the 24 hectare abandoned naval and shipbuilding site situated on Kotor Bay near Tivat. 

Mr. Munk is believed to have paid around USD 36 million for the site and currently has plans to spend around USD 500 million on his long term plans for the total redevelopment of the site and regeneration of the surrounding areas. 

As part of the purchase negotiations it was agreed that a major environmental initiative backed by the World Bank and the European Bank for Reconstruction and Development will get under way immediately and Kotor Bay, upon which Mr. Munk’s new project is located, which has become environmentally compromised over the years of heavy industrial traffic will be cleaned up, preserved and protected.

Naturally enough this environmental initiative immediately boosts the appeal of the location which is without doubt very beautiful and the site of many historic and cultural attractions - but which was restricted in its tourism appeal because of its industrialised image. 

And the good news for property investors seeking potential in Montenegro does not stop there!

Peter Munk’s plans for his new development in Tivat have nothing to do with regenerating the ship building industry in this pretty coastal town in southwest Montenegro!  Rather it is known that he has plans for the development of a luxury yacht marina, hotels, shopping facilities and the creation of a stunning and desirable resort that duly complies with the Montenegrin government’s highly publicised plans to turn their nation into a first class destination for discerning travellers rather than a budget holiday hotspot for those seeking a cheap getaway.

The major redevelopment of the ship yard in Tivat, the clean up of Kotor Bay around which Tivat curls and the expansion of Tivat’s airport to accommodate growing numbers of international flights means that this is one location in the world that is so hot for 2007 and beyond that those willing to buy now and wait for the wealthy tourists and second home hunters to come have the potential to reap serious returns. 

Property in Montenegro is already intensely in demand especially from the Russians, the British and the Irish following on from the nation achieving independence from Serbia back in June 2006 – but now that international foreign direct investment is coming from far further afield and the reputation that Montenegro has as a stable, stunning, economically and politically secure yet affordable nation is disseminating rapidly, those who want an emerging market in which they can invest have one of the most exciting ones in the form of Montenegro.  And as Tivat emerges as the number one destination on the southern Montenegrin Adriatic coast, so Tivat becomes more and more interesting for property speculators.  So, what are you waiting for?  You can currently buy a ruin on over five hundred square meters of land with exceptional sea views for GBP 30,000 and develop it, you can get a renovation project on over six hundred and fifty square meters of land just 5 minutes from the airport for GBP 75,000 and put in a pool or you can get brand new, off plan four bedroom homes for GBP 150,000 which you can flip on or rent out when complete.

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