Walking around Luštica Bay, a new development on Montenegro’s Adriatic coast, early in the morning is like arriving at a party before the guests have arrived.
Before the day’s heat has set in, the seafront is a hive of quiet activity. On the promenade by the marina, bins are emptied; silver electricity boxes polished and restaurant tables set for breakfast. Wet paint is drying.
On the beach by the five-star Chedi hotel, sun umbrellas are erected and deck chairs angled to face the glittering blue water.
There is an undeniable sense of anticipation in the air. At 7 million square metres, Luštica Bay is the largest development of its kind in southern Europe. It lies on the green Luštica Peninsula, between the entrance to Boka Bay and the Adriatic.
Led by Swiss-based Orascom Development and Luštica Bay in partnership with the government of Montenegro, this is Montenegro’s first greenfield investment, estimated at €1.5 billion.
It is pitched, like Orascom’s other investments, as an integrated community which will draw local and international buyers to the country’s sparkling coastline.
The Marina Village, set around the marina itself, is the first part of the development to come to life. With work still ongoing, it is new and shiny, with a waterfront promenade —home to restaurants and boutiques— four beaches and a collection of apartments, townhouses and villas.
The buildings are modelled on those in nearby fishing village and UNESCO heritage site Perast, cut from local, earthy-toned Luštica stone with terracotta roof tiles of different shades. But unlike the buildings in Perast, weathered by the wind and smoothed under foot, these are still clean and even.
Today, a collection of boats bob in the marina’s water, which is so clear that you can look down and see schools of swimming fish. The promenade loops round the marina to a lighthouse, granting views back towards the village, backed by green mountains.
There are cranes on the hills above the marina, which rumble with the sound of construction —even on a bank holiday— and serve as a reminder: more is still to come.
The Marina Village and construction so far represents only 10 per cent of the total development. Over the next 20 years, this stretch of coastline will have five different neighbourhoods, more than 3,000 apartments, 300 villas, seven hotels, two marinas, an 18-hole golf course —Montenegro’s first— a school, hospital, 30km of road, 43 electricity power sub-stations, four water reservoirs and wastewater treatment plans. This will occupy just 10 per cent of the plot, so as to maintain the natural landscape.
So far, three of the five planned neighbourhoods have been launched: the Marina Village; Centrale, the down-to-earth “heart of Luštica Bay” and The Peaks, an upmarket offering set beside the landmark golf course.
“[Luštica Bay] is not just about real estate development – it’s about creating a community and a lifestyle,” says Darren Turner, director of development at Luštica Bay.
“What’s important is the planned social infrastructure like the school, hospital and recreation facilities. This is what creates a community and a place for people to live; for people to belong.”
As well as a school and hospital, Luštica Bay is building police and fire stations to encourage buyers to view the area as a long-term or permanent home.
There will be a bank; a dentist; a pharmacy. In more urban Centrale, there is a piazza surrounded by shops and restaurants, as well as padel, tennis, basketball and volleyball provisions. Like in typical Montenegrin towns, there is also a bocce ball court, a game similar to boules.
With properties currently priced between €180,000 in Centrale and €3,977,000 (the entry price for a villa) in The Peaks, though, buyers in Luštica Bay are likely to be varied.
When I visit, the Marina Village is full of young, Silicon Valley types, attending a three-month-long tech conference. According to Turner, the aim is to build a community of international as well as local people.
In the Marina Village, 381 properties have already been sold to buyers from over 40 different countries – including, apparently, an NBA player. Most initial purchases were holiday homes, but, says Turner, this is already beginning to change.
In the Marina Village, the rise of flexible working has encouraged some homeowners to relocate, while Centrale is starting to attract younger local buyers.
“For the first time, we had a local buyer,” says Ana Zlokovic, head of sales at Luštica Bay, who explains that price points in Centrale are designed to be more affordable. “In Centrale, we really wanted to create a local community of younger families.”
“We’re seeing this every year – that the range of demographic profiles and the intention changes,” agrees Turner. “Our residents are choosing to live here longer each year, to the point that Luštica Bay is becoming their primary residence. It’s becoming an international community.”
Despite the five neighbourhoods attracting buyers of different purposes, nationalities and price ranges, the aim is for luxury facilities like the golf course to be accessible to homeowners of all budgets, with residents to receive discounted membership fees, for example.
As many as 638 units have been sold across the development so far, with “huge demand” continuing.
Nevertheless, for buyers looking for a slice of Montenegro’s sparkling coastline, Luštica Bay has competition. The picturesque Boka Bay has long attracted buyers, while coastal towns like Budva, Bar and Herceg Novi are swelling to accommodate foreign interest.
The last decade has seen rival developments spring to life, like Portonovi, a luxury “Mediterranean-style village” on Boka Bay, and Porto Montenegro, a glitzy, ultra-high-end development targeted at superyacht owners.
Roman Abramovich docked his £430m vessel there last year, while Kuwaiti billionaire Kutayba Yusuf Ahmed Alghanim’s £212m gigayacht is currently moored in the harbour, reportedly abandoned. So what gives Luštica Bay the edge?
“It’s the sense of community,” says Zlokovic, who argues that the infrastructure will help to make Montenegro a year-round destination. “People want the beach, they want privacy, and they want to be able to get away from the crowd.”
“The beaches and open sea are a big draw card,” adds Turner. “People visiting other resorts in the inner Boka Bay spend an hour and a half getting to the beach or open sea in peak season. Here in Luštica Bay you can walk to one of the beaches from your residence.”
The infrastructure is also important. Tivat airport, which operates flights to over 40 different destinations, including London, is 12km away. Podgorica airport, Montenegro’s capital, is 92km away, while Dubrovnik in Croatia is 62km.
Luštica Bay is marketed as a base from which to explore the rest of Montenegro. And the country, roughly the size of Northern Ireland, has a lot to offer. There are rugged mountains —around 50 peaks over 2,000 metres— almost 300km of coastline, five UNESCO world heritage sites and five national parks.
The Tara Canyon, cleaved by the fast-flowing, clear blue Tara River, is the world’s second deepest, while Durmitor National Park offers skiing, hiking and jade green glacial lakes.
Montenegro is so compact that it is possible to ski and swim in the Adriatic in a day. Zlokovic shows me a photo to prove the point: a skier, dressed in pink, on the snowy mountain slopes, with the deep blue water of the bay below.
Back at the Marina Village, it is heating up. The first swimmers head to the beach and the restaurants open for breakfast. The preparations for Luštica Bay are all in place. And, as the development grows, the guests continue to arrive. Now it’s time for the music to start.
What it costs
Marina Village
There are waterfront apartments, townhouses and private villas on offer at the Marina Village. Apartments range from studios to four-bedroom homes, while the villas and townhouses boast gardens, swimming pools and large entertaining spaces.
- Prices range from €341,000 to €1,293,000.
Centrale
There are two types of property for sale: Centrale Apartments and Piazza Apartments, both ranging from studios to three-bedroom homes.
- Studios start at €180,000.
- Two-bedroom apartments: €460,000 to €524,000.
- Three-bedroom apartments: €585,000 to €1,000,000.
The Peaks
Launched in May this year, these upmarket golf residences include one to three-bedroom apartments, three-bedroom townhouses and three to four-bedroom villas with private pools and panoramic views.
- Apartments: €933,000 to €1,350,000 million
- Townhouses: €1,820,00 to €1,847,000
- Villas: start at €3.977 million.
