Introduction
Since declaring independence from Serbia in June 2006 Montenegro’s government has been keen to pursue the twin goals of stimulating tourism growth and increasing its attractiveness as an EU candidate. With EU membership projected for 2014, and EU funds allocated to improve infrastructure, the country looks likely to continue the strong 6% GDP growth of recent years.
Montenegro has also been placed in the top three destinations in the world by the World Tourism & Travel Council in terms of forecast growth in this sector over the next decade – the highest figure in Europe and an excellent signal to the rental potential of suitable properties.
Coupled with the country’s great beauty and thriving economy, the country is also becoming increasingly popular with investors. Since 2005 land values have significantly increased, and popular tourist destination the UNESCO-protected Kotor fjord’s landscape of steep mountains rising from deep waters naturally restricts over-development, limiting supply and creating demand for highly sought-after frontline developments such as the Seagarden Resort.
Situated on the banks of the stunning Kotor fjord, Seagarden offers sympathetically stone-built frontline apartments with views over the water and surrounding mountains. A high-spec, boutique development, Seagarden will have its own small marina, underground parking, waterside restaurant/bar and private beach.
Prices for 1-bed apartments start from €155,000 (~£114k), that’s around 16% under current market value. You can secure one of these apartments with just a 20% commitment deposit. The remaining 80% of the purchase price is due at completion. One of Montenegro’s largest banks is offering mortgages on the completed value of the property which means you could potentially (depending on your financial status) cover the remainder with finance.
This is a rare instance where a sound, long-term investment destination with plenty of potential for growth is also somewhere you would like to holiday.
Call us on 01273 627 900 to get your questions answered and to reserve your property.
Regards
Financing
The very rare ability to obtain finance was one of the first things that attracted us to this deal.
We have negotiated a deal with the developer where you only need to put in a 20% deposit up-front, with 80% due at completion in 2009.
Because of their relationship with the developer, one of Montenegro’s largest banks Hypo Alpe Adria has agreed to provide mortgage finance on the final valuation price of your property. Mortgages for foreign owners are still very rare in Montenegro.
Seagarden is approximately 16% under market value when compared to other local developments, boosting your equity for finance.
“Total demand in the tourism sector is forecast to rise by 8.6% per year, as compared to the 3.3% average in the EU overall.”
World Travel & Tourism Council
Location
Seagarden boasts a world class location. Positioned on the waterfront of Kotor fjord, the area is perceived as one of the best part of Montenegro. UNESCO- protected Kotor is only a ten minute drive away from the site.
Demand is high. Tourism numbers to Montenegro are expected to grow strongly and according to the WTTC, the country is already ranked in the top three tourist destinations in the world.
Couple this with strict planning laws to prevent overdevelopment and a narrow coastal plain which geographically restricts many developments from being built on the waterside.
On a national scale EU membership is looking increasingly likely for 2014, with pre-EU funds paying for an upgraded infrastructure. Montenegro is also growing strongly as an economy, at 6.2% per year1. This is above EU average and looks to continue. Favourable tax conditions support this growth and with tourist numbers fuelling the economy, we see Montenegro as a safe, long-term investment destination. Indeed, it is the rare breed of a sound investment and somewhere you would want to holiday.
1. www.vlada.cg.yu/eng/