Table of Contents
As I dipped my head into the cool, clear waters of the Adriatic to relieve the 30-plus degree Montenegrin heat while admiring the beautiful green, mountainous terrain in the distance, I realized that the Eastern European country had gotten under my skin.
The term “entrepreneur” is overused and used for all sorts of places that have already moved past that stage.
But Lustica Bay, a former Yugoslav military base, is the first destination I’ve been to in a while that I think deserves that label.
Located 20 minutes from Tivat Airport (served by EasyJet, Jet2, Ryanair and Wizzair from Britain) and just under three hours from London, it’s easy to see why it’s becoming a popular destination for luxury properties and top brand hotels are moving in.
Lustica Bay: A former Yugoslav military base turned into a luxury destination
Add to this a Gary Player-designed golf course that, when completed, will be in the top 10 per cent club (i.e. those with sea views from every hole), and the future looks exciting for the young country.
Montenegro became an independent state in 2006 and visitor numbers now exceed 2.5 million a year, up from less than a million in that first year, but that figure pales in comparison to its more popular neighbour, Croatia.
In fact, Dubrovnik is a couple of hours away by car or speedboat, depending on the preferred method, and it is relatively easy to visit both in one trip.
The country, which is not a member of the European Union but aspires to join, looks ripe for an explosion of real estate investment and tourism.
It is currently located in the middle of three large residential developments with marinas. Next to Lustica Bay, there are Porto Montenegro and Portonovi.
A half-hour drive from Lustica is also the UNESCO World Heritage Site of Kotor, where you can also take a boat around Boka Bay and visit the beautiful Church of Our Lady of Skrpjela (located on a remote island in the bay).
All of these easily accessible locations, along with some fantastic walking and cycling trails and secluded bays for a dip in the Adriatic, are ingredients for this area to soon appear on the radar of those looking for property abroad off the beaten track and for more tourists to visit.
Grounds: One of golf’s original stars, Gary Player, surveying the area
Golf with a view: To the left of this shot is The Peaks, where the golf course is being built, and to the right is Marina Village.
Golf and The Peaks Residences in development
On my visit to Lustica, I was invited to watch Gary Player take his inaugural swing on the golf course, currently under construction.
The views are impressive: its spectacular elevation goes from the highest hole, at 310 metres, to the lowest hole, at 130 metres.
Mr. Player, 89 and one of the only golfers to win a career Grand Slam, tells the tale before launching into a story about how he helped Elvis Presley improve his golf game (naturally, it’s all in the hips).
When completed in 2028, it will be Montenegro’s first golf course.
The first nine holes will be playable in 2026 and will house a driving range, a golf club and an academy.
Mr. Player was very passionate in emphasizing the importance of the terrain and wildlife of the area.
He said: ‘The natural beauty of the property is extraordinary, with its rugged terrain, diverse wildlife and views of the Adriatic Sea.
“If I had to have a house on any golf course in the world or a villa, this would be my place.”
It may be a good sales pitch, but it’s hard to deny that it’s an incredibly beautiful place to build a golf course and then play on once it’s finished.
Next to it, the residences called The Peaks will be built, with 44 villas, 21 townhouses and 80 apartments, yet to be built.
Why buy a property in Lustica?
Lustica itself covers an area of 690 hectares, approximately five times the size of Hyde Park and four times the size of Monaco.
When I visited in July, the marina was relatively quiet and peaceful.
Marinas are not my kind of place as they are noisy and crowded, but there are lots of lovely restaurants and bars, and I can understand why people are buying houses here.
Also, if you’re expecting sandy beaches, you’ll need to temper your expectations.
Instead, there is a wonderful restaurant-bar called Almara, where you can eat, drink and take a dip in the cool, crystal-clear waters of the Adriatic.
A little further up from Marina Village is another residential area under construction called Centrale, which was packed with families in the square when I visited on a Saturday evening.
Lustica will eventually house 6,000 residents, with 3,000 apartments, 300 sea-view villas and a total of seven hotels. There is currently a Chedi Hotel and a Four Seasons is expected to open.
And 10 minutes from Lustica is the Nikki Beach Hotel, situated in the bay, rather than the sea, for those looking for a more lively stay.
Villa life: this is what one of the properties on the golf course is expected to look like when it is built
Pool with a view: Some of The View properties will have views of the golf course and the Adriatic.
As I stood in The Peaks and looked out over the undeveloped landscape, I wondered what it would look like in 10 years.
Developers say only 10 percent of the 690 hectares of land and six kilometers of coastline will be built.
Under strict Montenegrin planning regulations, new housing must respect the local architectural heritage and the natural beauty of the landscape, which appears to be the case in Lustica.
Montenegro declared itself the world’s first green state in 1991, so it takes itself seriously.
Today, it has five national parks covering 8 percent of its territory and four World Heritage sites, the seventh largest area per km in the world.
Property prices in Lustica currently start from €433,000 (£365,000) in Centrale, €564,000 in Marina Village and €740,000 in The Peaks.
The price per square metre is around €7,000, slightly cheaper than the €9,000 in Portonovi and €10,000 in Porto Montenegro.
In comparison, the price per square metre in central London is around €20,000 and in Monaco €50,000.
The developer says Lustica offers the Mediterranean lifestyle with 270 days of sunshine a year.
Location: Lustica is close to Dubrovnik and easily accessible from Tivat Airport.
Big plan: The former Yugoslav military base will consist of several different areas, with the golf course being the most prominent.
The finer details about buying a house in Lustica
The developer says the Montenegrin government gives foreign investors the same status as local ones.
Property buyers can apply for a one-year residence permit and after five years they can apply for permanent residence if they wish.
Income tax is capped at 15 percent and there is a transfer tax for resale properties on a sliding scale of 3 to 6 percent.
There is also an annual property tax of 0.25 to 1 percent on the market value estimated by the local council.
In addition, inheritance tax does not apply to next of kin. For more information and properties for sale, Visit the Lustica Bay website.
Lee Boyce was a guest of Orascom Development Holding and stayed at the Chedi Hotel, where prices start from £175 per night. Flights to Tivat start from £100 return with Easyjet from London Gatwick.