Montenegro is one of the hotspots of international investments in the Mediterranean area. Key investments from Peter Munk, the Rothschild family and some Russian oligarchs brought the small country into the spotlight of the international community.
The global financial crisis calmed down the enormous steam the market developed in the years 2005-2008 with a result, that some of very ambitious projects have been frozen or given up by investors. That crisis, which is also a big chance for the country to rethink the development strategies, lead to an approach of the government which supports now much more the sustainable development of Montenegro into a luxury destination. Several infrastructure projects come in place before the next investment boom will start and the country might be prepared much better than before.
The main investors are, due to the lack of finance in western European countries, Russians (approximately 80%). The rest is shared between Serbs, Scandinavians, Germans, Arabs, Austrians and other Eastern European nationalities.
Due to the good flight schedule to Moscow and other Russian cities, Montenegro is very popular for Russian investors. With the three main airports Podgorica, Tivat and Dubrovnik - reachable within 1 driving hour - the country is very well connected to the biggest cities in Europe. From beginning of 2011 there should be direct flights from Germany to Tivat, operated by Air Berlin.
During the last 2 years prices decreased between 20% and 50% and we see the first signs of price stability in the end of 2011. Also we see some interest of serious international investor groups to look closer at Montenegro as investment spot.
Key investments like Porto Montenegro, Lustica Bay from Orascom and Quatari Diar could give new steam to the market if the announced time schedules regarding construction start and delivery can be realised.
Investments concentrate very much on the coastal region where especially houses first line show increasing demand on reduced prices.