Dubai-based developer Mohamed Alabbar is set to initiate significant investments in Montenegro, with a strategic emphasis on the southern coastline, particularly the Štoj and Velika Plaža areas near Ulcinj. This shift indicates a potential realignment of Montenegro’s tourism and real estate development focus, moving away from the increasingly saturated Budva region.
Alabbar, who chairs Eagle Hills, has identified Montenegro as a market with considerable yet underutilized potential. He pointed out existing structural deficiencies in project scale, planning, and execution that could be remedied through integrated master-planned developments.
The choice of Štoj is strategic, as it lies adjacent to Velika Plaža—one of the Adriatic’s longest beaches—and represents one of the last significant undeveloped coastal zones in Montenegro. Unlike Budva, where land scarcity and fragmented ownership hinder large-scale projects, Ulcinj presents opportunities for greenfield, master-planned investments, akin to those previously executed by Eagle Hills in locations like Belgrade Waterfront.
Recent dialogues with local landowners suggest a departure from conventional acquisition methods. Instead of outright purchases or long-term leases, Alabbar is advocating for a joint venture structure. In this model, landowners would contribute their properties to a newly established development company in exchange for equity stakes. This approach minimizes initial capital requirements for investors while aligning interests among stakeholders—a model increasingly prevalent in large-scale real estate initiatives in emerging markets.
The precise scale of the anticipated investment remains undisclosed; however, market expectations indicate a potential multi-billion-euro phased development, reflecting Eagle Hills’ history with similar projects. The company’s global portfolio features extensive mixed-use developments that integrate residential, hospitality, retail, and marina components, often in collaboration with government entities or local partners.
Montenegro’s strategic appeal is twofold. The country aims to establish itself as a high-end tourism and real estate destination, bolstered by low corporate tax rates and ongoing negotiations for EU accession. Additionally, there exists a notable disparity between the demand for premium coastal properties and the availability of large developable land parcels—an imbalance that projects in Ulcinj could help rectify.
Simultaneously, this initiative emerges during a transitional phase in Montenegro’s property market. As price growth in established areas like Budva begins to decelerate or even reverse in certain segments, investors are increasingly turning their attention toward new development zones with long-term upside potential. Ulcinj stands out due to its scale and relatively low entry price point.
However, substantial execution risks persist. Large coastal developments in Montenegro encounter intricate regulatory hurdles, including spatial planning approvals, environmental assessments, and infrastructure integration challenges. Gaining alignment among local stakeholders—especially in regions characterized by fragmented land ownership—will be essential for project success.
Alabbar’s strategy reflects an understanding of these complexities. By proposing partnership-oriented models and focusing on long-term development rather than speculative construction, his approach aims to alleviate some of the structural obstacles that have historically impeded large projects in the region.
This announcement mirrors a common trend observed in emerging real estate markets. As prime locations reach maturity and price growth stabilizes, investment capital tends to migrate toward new areas where effective planning and infrastructure can facilitate the next stage of development. In Montenegro’s context, this evolution may increasingly be shaped not by Budva but by the less developed southern coastline.
If successfully executed, the Štoj and Velika Plaža initiatives would signify one of the most substantial capital inflows into Montenegro’s real estate sector in recent years. This would not only impact tourism and property markets but also influence infrastructure development, employment opportunities, and regional positioning within the Adriatic investment framework.
