Lustica: the real Montenegro with high investment potential

Geography and more

The Montenegrin Lustica peninsula is located right at the entrance to the Boko Kotor Bay of the Adriatic Sea. On the one hand, the peninsula is washed by the waters of the Tivat Bay, and on the other by the clear emerald waters of the Adriatic. The total coastline of Lustica stretches for 35 km, which is almost 12% of the entire coast of Montenegro.  

The geographical location predetermined the fate of the peninsula: since the 19th century, fortresses and defensive towers were built here, and several centuries earlier this place became a haven for smugglers and pirates. Today, the infrastructure is developing here, villas and apartments are being built, and even an entire elite urbanization is being built. But so far there is not a single large city in the whole of Lustica, in the usual Russian sense, only isolated villages, hamlets and small settlements.

Until recently, the peninsula was considered the most undeveloped part of the coast of Montenegro, but in 2013 the construction of the luxury complex "Lustica Bay" (Luštica Bay) began here. Within the framework of this project, by 2025, more than 500 villas and townhouses, 7 hotels, more than 1,000 apartments, 2 marinas, a school, a business center, a medical facility, a police and fire station, as well as various recreational and entertainment infrastructure will be built. When the entire project is implemented, it is expected that this part of the peninsula will turn from a resort town aimed at sophisticated tourists into a full-fledged city suitable for permanent residence. The complex will occupy only 6% of the peninsula's territory, but promises to become the first luxury resort. To date, 10 buildings and 70 apartments have been put into operation. Another 88 apartments will be ready in 2017.

In addition to Luštica Bay, few tourists are attracted by the picturesque villages of Marovici and Radovici, located near popular beaches, Rosa and Krasici, overlooking the Tivat Bay, as well as the former fishing villages of Bigova and Krimovitsy, located between Lustica and Budva.

How to get there

The nearest international airport to Lustica is located in the city of Tivat, and Moscow and Tivat are connected by year-round direct flights. At least three airlines Aeroflot, S7 and Montenegro Airlines have this route in their schedules, and Aeroflot operates flights on it daily. The average cost of round-trip tickets ranges from 15 000-18 000 rubles per person.

You can get from Tivat to Lustica by boat, taxi or by renting a car directly at the airport (through the offices of the company Europcar, Sixt and Stella Car).

WhyLustica

• The peninsula has a mild Mediterranean climate with dry summers and mild winters. The bathing season here lasts for more than six months, and even in winter the streets are not covered with snow, but delight with lush green vegetation;
• The peninsula is a paradise for lovers of botany. Coniferous and fruit trees grow in abundance here: strawberry tree, pomegranate, prickly pear cactus, figs, almonds, carob tree, and all edible fruits have been adapted by the local population for cooking national dishes

• Lustica is a sea with turquoise water and beaches: sandy (Plavi Horizonti, Oblatno) and pebbly (Zhanitsa, Mirishte), Mediterranean pines and olive groves, homemade wine and raki; cheese, prshut and olive oil from local ingredients;
• Outdoor enthusiasts can practice golf here at the driving range, and in the future at the 18-hole golf course designed by the famous champion Gary Player. Diving and snorkeling, hiking and cycling, sailing, kayaking and archery are also popular here;
• Almost every village on the peninsula has a church: on a compact area of 50 square kilometers there are about 20 temples (18 Orthodox and 2 Catholic), which is why the peninsula was nicknamed Little Athos.

The situation in the real estate market

Experts note that today the real estate market in Montenegro is very lively. There is a stable demand for real estate in the country, including elite, high activity in the construction sector, as well as a noticeably increased tourist flow.

The majority of foreign buyers are Russians and British. Our compatriots prefer lively tourist destinations such as Budva, Herceg Novi and Tivat, and Europeans and residents of Montenegro are more attracted to the capital's real estate in Podgorica. Recently, the interest of foreign investors has shifted towards resorts under construction and just beginning to develop, such as Luštica Bay, in the villages of Bigova and Krimovitsy.

Purchase real estate on the Lustica peninsula should be accompanied by a serious check of the object and the availability of all permits by a local lawyer, since it is not uncommon for housing to be sold without the necessary construction license. As a rule, such objects can be recognized at a relatively low price.

Popular areas

Buyers with an average budget (up to 250,000 euros) prefer Krashichi. There are all communications (electricity, water, sewerage), as well as a DUP (detailed urban plan), that is, most of the buildings are legal or can be legalized.

Many people really like the area of Rosa, a fishing village located right at the entrance to the bay, but the situation with communications is much worse there, and there is also no development plan for the DUP.

Recently, the popularity of Bigovaya has increased, especially after the construction of a large hotel complex with a marina was announced there.

Also on Lustica, closer to Budva, not far from Yaz beach, there is a nice settlement of Krimovitsy. Experts believe that in the long term (20-30 years) This place has huge potential. So far there is no general plan of development, no communications (water and sewerage), but in the future it will become a place of concentration of luxury villas that have already begun to be built. After communications, real estate in this village will rise sharply in price.

Prices

The average cost per square meter of affordable housing on the Lustica peninsula is €1400-€2000, depending on the condition and location of the facility.

The primary market is characterized by more spacious apartments and comfortable layouts. A studio (37 sq. m.) and an apartment (43 sq. m.) with 1 bedroom cost about 70,000 euros. In Krasici, and in general in Lustica, with the exception of the Lustica Bay enclave, you can buy new or almost new 1-bedroom apartments from 80,000-90,000, two-bedroom apartments from 100,000-130,000. Before buying, it is worth checking the documents for a building permit, experts advise. So, a new apartment with an area of 50 sq. m. m with panoramic views of the Bay of Kotor in Krasici can be purchased at a price of about 90,000 euros. And spacious furnished apartments in Mirishte with an area of 130 sq. m. m on the ground floor – for €256 000. Prices for townhouses, for example, in Krasici, start from €70 000.

In the secondary market, the cost of an apartment (39 sq. m.) with a sea view or a compact studio (23 sq. m.) on the first line starts from 55 000-60 000. The cost of spacious apartments (more than 100 sq. m. m) with three bedrooms, sea views and a private garden comes to 700,000 euros. A cozy second-market apartment 300 meters from the beach (but without direct access to the sea), in a residential complex with a swimming pool, with two bedrooms and 95 sq. m. m of total area, can be purchased for €155 000.

A house far from civilization can be purchased at a price of 60,000 euros. But such inexpensive objects may not have the necessary documents - you need to check before buying! If we talk about houses with a full package of documents in Krashichi, then this is from €120,000 high on the mountain. Villas on the first and second coastlines will cost €340,000-€500,000. The average price of a house in Krasici, where there are many new villas, is €200,000-€230,000. So, for €200,000 you can buy a two-storey house with an area of 100 sq. m. m with panoramic views, a roof terrace and a rather modest setting.

Prices for premium housing start at €4,500 and above, but for this money the owners get really exclusive housing. The cost of luxury villas during construction both in Krasici and in Lustica as a whole is above €1 million, therefore prices range from €1.3 million to €2.2 million, however, you can bargain when buying. The cost of luxury and exclusivevillas reach up to €4 million.

The high cost of housing is also typical for the closed enclave of Luštica Bay, which has a modern new infrastructure and is located far from traditional housing. So, a studio apartment with an area of 50 sq. m. The price here is about 355,000 euros, a one-bedroom apartment is 515,000 euros, and the minimum cost of a townhouse starts from 675,000 euros. For such a high price, by the standards of Montenegro, you can count on an apartment with a sea view, no further than on the third coastline, with high-quality finishes, panoramic windows, unfurnished, but with plumbing and a built-in kitchen.

Rent

Daily rent of apartments in Lustica starts from €35 per night. Renting a villa at the height of the tourist season will cost approximately 300 euros. You can rent a house cheaper, and even in the high summer season, but most likely it will be located on a steep hill, and a daily walk along the road at an incline of 45 degrees requires good health and good physical fitness.

The cost of renting a one-bedroom apartment in Luštica Bay, even out of season, starts from €150 per night.

Purchase recommendations

Lustica is a real Montenegro, not crowded with tourists, a unique untouched piece of land with lush vegetation and real silence, clean air and turquoise waters of the Adriatic Sea and the Tivat Bay.

According to realtors, Montenegro is still at the beginning of the development cycle, so local real estate is very attractive from the point of view of profitable investment. They predict that after widespread communications and the adoption of urbanization plans, all Lustica real estate will double in price.

Lustica can be recommended to those who want to live in seclusion, in silence in the bosom of nature and who are willing to sacrifice comfort in the form of restaurants and noisy nightlife; to those who own a car or always rent it. A big plus is the proximity of the airport, 10-15 km away. That is why Lustica is now being so actively developed by investors.

One of the advantages of buying real estate in Montenegro is the provision of an annual residence permit, regardless of the cost and purpose of the object. It can be an apartment, a house, a villa, as well as any commercial real estate object. However, it should be borne in mind that having a residence permit does not give you the right to work or study in Montenegro.

Portal HomesOverseas.ru thanks Ekaterina Parshina (Lustica Bay) and Elena Nevskaya (ADRIONICA).

photocredits: lustica bay / flickr / livingmontenegro

Olga Shoshina

HomesOverseas.ru