Montenegro Property Market Flying High

Well, with the news that Montenegro is to get direct scheduled flights from the UK finally, we couldn’t resist the corny title for this article!  Yes folks, it’s the news that we’ve all been waiting for, Montenegro Airlines are starting a scheduled service from Gatwick from June – not Stansted or City airport as had been previously suggested, but good old Gatwick.  This bodes positively for the country’s booming tourism industry and is of course fabulous news for property investors.

But the good news for Montenegro doesn’t stop there – this really is a nation with a healthy property market that is bucking the global downturn!  There has been a massive upward pricing trend of 26% for prime property in Montenegro, and now the government says it is well on track with its ‘homework assignments’ for EU entry.

So, first things first, the direct flights: instead of having to fly chartered or via Croatia to enter Montenegro and encounter the extra journey times and hassles this inevitably results in, British visitors can look forward to affordable scheduled flights from an accessible airport in the UK which will land in Tivat.  The flights are scheduled to begin on June the 15th, and the airline will fly this route every Wednesday and Sunday.  Naturally direct flights have a direct impact on accessibility and this has a direct impact in terms of the attraction of a nation.

The lack of direct flights is the one thing holding the Northern Cypriot property and tourism markets back for example – but for Montenegro things are looking up in both sectors.  Back in 2006 the World Travel and Tourism Council predicted that the nation would become the fastest growing travel and tourism economy in the world…with more direct flights from the UK this prediction is far more likely to come true now.  And already the property market is booming in the nation thanks to corporate investment and high-end international investor commitment.

With more direct flights, it’s likely the smaller property consumer will take a punt on the property market in Montenegro too – if they can find funding to do so of course in this financial day and age!  In terms of the impact the big investors have had on the market already, there has been a 26% increase in luxury real estate prices in Montenegro according to Knight Frank for example, and there is expected to be a massive bidding war now that the government has finally released its long awaited tender for development of Velika Plaza on the Adriatic.

We’ve mentioned this project in previous posts – basically there’s a stunning stretch of virgin Adriatic coastline up for grabs by developers and the government want tenders submitting by interested parties who will work to develop “a unique, multifunctional upscale tourism resort, offering a range of leisure activities in the manner which is conceptually, aesthetically, functionally and environmentally in harmony with the beauty of the natural surrounding and environmental richness of the site.”

We can’t wait to see what transpires.

And finally – Montenegro’s march towards EU entry continues apace according to the country’s recently re-elected president, he has confirmed that Montenegro is working on its ‘homework assignments’ and is not battling deadlines or suffering pressure from the EU for failing in any areas of progress.  Rather the president pointed out to his people that it was up to them all to get behind efforts to achieve targets and ultimately achieve the entire country’s ultimate desire for EU acceptance.  Watch this space…

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