Aleksandra Draskovic, Founder and CEO of Montenegro Properties – High-End Resorts, Luxury Marinas and First Golf Residences Bringing New Value to Montenegrin Real Estate Market

The real estate market in Montenegro has been intensively developing for over a decade and a half now. In 2006, the country gained independence, and that same year, a remarkably high inflow of foreign direct investments and an increase in borrowing were realized. After international recognition, which removed the uncertainty hovering over the political status of the country, investors discovered the attractiveness and the comparative advantages of this country as a great location for the purchase of real estate and their operations. They very quickly recognized the country as a stable business environment and a wonderful area for living, with very low tax rates relative to other comparable states, but also a clearly defined European perspective.

All this incited Aleksandra Draskovic to leave the position of an adviser in the Government of Montenegro and, aware of the potentials the country has, found the real estate agency Montenegro Properties.

– In those years, the real estate market went through a real boom. I remember a report by the World Bank from that time, which placed Montenegro among the fastest growing non-oil economies in the world. We worked a lot to promote the agency, recognized the moment and realized cooperation with partners from Great Britain. We had a remarkably high number of customers from that market, but also numerous clients from Russia. In cooperation with the Government’s Agency for the Promotion of Foreign Investments, in 2009, we took part in the prestigious real estate fair MIPIM in Cannes, where we presented the investment possibilities in our country. We continued promoting and presenting Montenegro, wishing it to get the place on the world map that it truly deserves.

The several international real estate awards that we have received from International Property Awards – for the best real estate website, for the best marketing and the best agent, confirm that we have successfully been doing so for a number of years now – Aleksandra Draskovic said in an interview for eKapija.

eKapija: Which services do you provide to your clients and what can they expect when cooperating with Montenegro Properties?

– Montenegro Properties has been operating in the real estate market of Montenegro for 18 years already and, today, I can say with pride that it has become a partner that clients can trust. We are trying to make the real estate sales and purchase process as easy, efficient and pleasant as possible. We don’t pressure the client when deciding to buy real estate. Also, having recognized the needs of the clients before, during and after the sales and purchase process, I can say that, today, Montenegro Properties is a true one-stop shop, where we provide a full service to the clients, step by step, from viewing real estate, which we try to make pleasant and comfortable, through providing a purchase guide, the advising of clients as to why that particular piece of real estate is the right choice for them, all based on the detailed market research that we carry out at the agency regularly. We also have great cooperation with experienced law firms which have long-standing experience in providing legal protection to clients, which we always gladly recommend to our customers.

We can also say with pride that we have several clients whom we helped trade real estate through online purchase and we are extremely satisfied and proud of the fact that it was precisely those clients that recommended our agency. We also have clients whom we successfully helped purchase real estate with a cryptocurrency.

It is important to note that the purchaser does not pay a fee for our services.

eKapija: Considering that you have been in this business for a long time, how has the real estate market in Montenegro changed over the years?

– After the market boom in 2006 and 2007, when banks in Montenegro competed with each other to issue as many loans as possible, but also the galloping growth of the prices due to the great demand, the global financial crisis happened in 2008, when the “bubble” of the inflated prices burst. That’s when we faced a decreasing number of purchasers, followed by a global recession, which, unfortunately, didn’t bypass Montenegro either, with an accompanying drop in real estate prices due to the very low demand.

Another significant awakening of the market and the growing momentum of the prices and the demand in the real estate market happened around 2021, and especially in early 2022, when the war broke out in Ukraine and when we started recording enormous inflation rates. That led to a considerably increased real estate demand as a safe investment with a potential for capital growth. As the purchase of real estate is a safe investment in an inflation period, there was more demand for apartments, which resulted in good sales, even in residential complexes whose construction had not even begun, as an off-plan purchase. Today, I can say that the market has changed considerably. The customers are increasingly looking for luxury resorts, with all the features, which offer an attractive lifestyle.



eKapija: What was the turning point when the country became an attractive destination that attracts investors from the whole world?

– I would say that there have been several turning points that attracted international clients in different times and under various circumstances.

Almost as a rule, whenever the Government of Montenegro was oriented toward a proper creation of the business environment and a good investment climate, it would always attract real estate purchasers. Political stability, as I have already said, as well as bravely going down the path to the EU, contribute to the interest of investors from the whole world. Also, in Montenegro, we have competitive tax rates. The treatment of foreigners is not different from the treatment of Montenegrin citizens, which also helps foreigners make the decision to invest capital here.

The geographic position of Montenegro, in the heart of Europe, also makes it a very attractive and desirable destination, which is only a few hours’ flight away from major European cities.

I would also add the importance of high-end and luxury resorts in our country, such as Porto Montenegro, Lustica Bay and Portonovi, which have been attracting a large number of purchasers from the whole world since the moment they appeared in the Montenegrin market. In the future, I see Montenegro as a yachting hub.

If we combine these two advantages I have mentioned, the geographic position and the presence of resorts precisely like Porto Montenegro, we can conclude that Montenegro, since geo-strategically located on the axis between the heart of the arena of superyachting of the western Mediterranean and the Caribbean arena in the east, is in a good position to become one of the most demanded yachting centers in the world. Considering the beautiful nature it has been gifted with, the gorgeous Bay of Kotor, but also the rich maritime legacy and its long tradition, the idea to position Montenegro on the world map of superyachting destinations is certainly not without basis.

One of the very important moments that attracted a large number of apartment purchasers to the Porto Montenegro complex was also the Government’s strategy to exclude yacht fuel from the obligation of tax payment, so this marina had the “tax and duty-free fuel” service”, that is, the fuel in the marina was exempt from all charges, which was much cheaper in Montenegro than in other destinations. For example, with two to three seasonal fuelings, the owner of a yacht which spends 50 tons of oil in one fueling could almost make a saving equal to the price of year-round docking at a superluxury marina. There’s an even more important fact: the price of docking at the Porto Montenegro complex itself was considerably lower than in some other destination, so yacht owners would decide to buy an apartment in the complex, also because the money they could save on paying for docking at the marina over a 10-year period compared to other destinations allowed them to get that apartment practically for free!

Also, the Covid-19 pandemic changed the clients’ preferences to a large extent, so we can also consider that period a turning point and a very important one in the sense of the customers’ expectations. After the pandemic, the tendency is for purchasers to look for open spaces, real estate surrounded by nature.



eKapija: You are actively present in the market of Great Britain, where you cooperate with numerous investors, but also business associations and organizations. To what extent do they recognize Montenegro as an investment destination in that market? According by your experience, where do the most investors come from and in which markets do you see opportunity for growth, that is, for attracting new investments?

– We are actively present at various events in London at which we promote Montenegro and its investment potentials. I have to admit that, unfortunately, many have not heard of Montenegro, which is still an emerging market, that is, a developing market. My opinion is that Montenegro should be promoted as such, because there is plenty of room for the development of new investments.

This year, we had several presentations in Great Britain, which resulted in new partnerships with Arab, British and Scottish clients. We will work on the development and further improvement of these partnerships in the year ahead of us too. It is precisely in these markets that I see an opportunity for growth and attracting new investments. With our Arab partners, we will work on developing big projects and new investments, and to our British and Scottish clients, we will present the golf residences within the Lustica Bay complex.

eKapija: In Montenegro, there are resorts such as Lustica Bay, Porto Montenegro, Portonovi. How much have these complexes influenced the development of the market, especially the segment of luxury real estate, where clients are looking for not just a place to live in, but a full service?

– With the development of these resorts, the real estate market in Montenegro has gone a step further and now we can offer a full experience that such real estate offers to our clients all over the world.

I have already mentioned that clients are increasingly seeking serviced apartments, one-stop shop or one-stop service, with quality management and maintenance. They are looking for resorts with all the features, which will offer all the services for a comfortable and pleasant life for people who stay in them.

This is also confirmed by the fact that, in this premium segment, the sale in the resorts Porto Montenegro, Lustica Bay and Portonovi has been recording its best several years. The demand is remarkably high, so the majority of the luxury apartments in them are sold out, including apartments under construction.

Porto Montenegro has transformed from a summer-season to a year-round destination and a regional-lifestyle and multidimensional business center, precisely with the new residential and office facilities that were opened within the “Regent Pool and Club Residences” phase, and also with the construction of the new settlement Boka Place. Within this settlement, a new hotel is being raised, which will have 150 units, which will operate under the One & Only brand. The Boka Place settlement will also have a shopping mall, an Olympic-size pool and other features.

Within the Portonovi complex, which has brought top luxury to the Bay of Kotor, is the sole One & Only hotel in Europe, which is synonymous with glamorous resorts worldwide.

Lustica Bay has started the construction of the first 18-hole golf course in the region, designed by Gary Player, a recognized name in the world of golf. The new project that Lustica Bay is developing – the construction of golf residences, will have 300 to 400 high-end units in close proximity to/right next to the golf course itself.



eKapija: Considering that these are the first golf residences in Montenegro, can we expect this to further improve the offer in Montenegro and is that an opportunity to attract a whole new clientele to the country?

– Absolutely, yes. It is precisely these residences that we presented recently in London to the Scottish golf community and I must admit that there is a great interest. During this presentation of golf residences, but also during the preparation of the upcoming ones, we carried out a small survey and comparison with similar projects in Portugal, France and Spain, which has shown that, as a rule, such high-end facilities have always influenced the growth of the value of the real estate in the surroundings. The same will happen in Montenegro.

Also, the survey carried out by the agency Europe Tour Properties says that 67% of the purchasers of residences near golf courses are people who don’t play golf, so we are also presenting the project in other addresses as well. For the purchasers who don’t play golf (it is only in Thailand that the purchasers have been mostly golf players – as many as 98%), and who buy such real estate, it is important for the resort to offer other features as well, such as various leisure and other sports activities, good restaurants, pools and so on, which Lustica Bay has, and which is an added value for the clientele of various profiles.

Additional space for investments, both on the Lustica peninsula and in other parts of Montenegro, I am sure, will also bring quality projects and improve the real estate offer in Montenegro.

eKapija: The program of economic citizenship considerably influenced the attracting of foreign investments. How has its cancelation influenced the real estate market? Is a negative effect perceptible and do you still get inquests which it comes to this program?

– Montenegro Properties actively participated in the program of the Government of Montenegro “Citizenship by Investment” and we have several satisfied clients who got Montenegrin passports.

We could interpret that program as an investment migration of sorts, and it is precisely investment migrations that are an excellent long-term form of the state creating the demand for investments and accelerating the economic growth.

My opinion is that the program of economic citizenship has considerably contributed to the development of Montenegro, primarily in the north, which has also enabled the state to direct its capacities and start realizing the development of this region. Before the Government initiated the program of economic citizenship, for more than two decades, no high-category hotel had been built in the north of Montenegro. This piece of information best shows the importance of the program for the development of this part of our country, and also the successful diversification of the tourism offer of Montenegro. The result of the program is: the construction of several hotels with a capacity of over a thousand units, the creation of over a thousand new jobs and the generation of considerable funds for the improvement of the infrastructure of the undeveloped municipalities in the north.

Hotels of 4* and 5* are being built, and it is very questionable whether their construction would start in the near future if it had not been for the program of economic citizenship.

Unfortunately, we are now witnessing the negative economic effects of the cancelation of the program, especially in the north. The concept of the residential-commercial units which were offered within the program of economic citizenship was such that they were specially designed precisely for the program applicants. Their design, the entire concept of those units was closely related to the program and the applicants, which was harmonized in terms of prices as a premium product with the program that was offered to the customers. I believe that it is necessary for a market adjustment of prices to occur in order for those units to remain attractive and fit the criteria of the purchasers who are now already not participants in the program of economic citizenship.

I am sorry that the program has been canceled and that we are already feeling the negative repercussions in the north, which could have been positively transformed forever if the program had been extended. This is also shown by the fact that we still receive inquests about the program and that the interest is still high. However, now, I am afraid that the expected benefits to the north will be considerably slowed down.



eKapija: What is the attractiveness of Montenegro as an investment destination reflected in, and where do you see the biggest problems that should be addresses in order to attract as many investors as possible?

– There are several comparative advantages that set Montenegro apart. The main one is that the seaside and mountain parts can be seen as a unit, due to their proximity, with only a two hours’ drive from the mountains to the sea. Also, Montenegro is gifted with beautiful nature, with one of the most beautiful bays in the world, the Bay of Kotor. Another important advantage is that we use euro as the currency, which, in times of economic crises, has served as a barrier against all the challenges for many sectors of the economy. I believe that that is very important for economic stability.

As the main challenges that need to be faced and on whose improvement we need to work in the future, I see the poor road infrastructure, an increase in the capacities of the airports in Podgorica and Tivat and the introduction of new air routes toward international destinations. I believe that it is necessary to launch a strong investment cycle in the construction of infrastructure and work on creating conditions which will enable better air traffic connections as soon as possible.

eKapija: What are the plans of Montenegro Properties in the coming period? What will the business activities focus on?

– In the coming period as well, Montenegro Properties will continue presenting Montenegro to international clientele through presentations, participation in real estate fairs and presentations in prestigious media, with a focus on the golf residences and luxury real estate. We will also work actively on attracting investors from the Middle East, so, in the first quarter of 2024 already, we plan to present the investment possibilities of Montenegro in Riyadh, with the help of the Saudi Chambers of Commerce.

D. Obradovic

Montenegro Properties

Government of Montenegro

International Property Awards

Porto Montenegro

Luštica Bay

Portonovi

One and Only

Europe Tour Properties

Saudi Chambers of Commerce

Aleksandra Drašković

Boka Place

Montenegro real estate

real estate in Montenegro

development of real estate

economic citizenship

investments in real estate