New luxury developments are adding to Montenegro’s coastal investment pipeline as international hospitality brands and residential projects expand along the Adriatic. Nammos Hotels & Resorts and Smokva Bay have announced a partnership to develop Nammos Resort Montenegro on the Budva Riviera, located ten minutes from Sveti Stefan.
The planned resort will contain 117 units, comprising 47 hotel suites, 61 branded residences and nine villas, together with dining, retail and wellness facilities. The project’s financing structure and total development budget have not been disclosed. The commercial model is expected to include presales of branded residences, which can reduce the amount of sponsor equity required while making project delivery dependent on demand for high-end property.
Separately, Luštica Development is preparing infrastructure for 13 additional golf residences at Luštica Bay. The limited number of units is associated with a premium-density development model rather than large-scale residential construction. The projects add to Montenegro’s luxury segment while increasing the coastal economy’s exposure to international wealth flows and second-home demand. Foreign buyers invested nearly €500 million in Montenegrin real estate in 2025, accounting for close to half of total foreign direct investment. Cumulative real estate investment by foreign purchasers has exceeded €1.5 billion since 2022.
The distribution of foreign capital remains significant. According to the Foreign Investors Council, productive investment represents only around 13 per cent of foreign capital, with real estate receiving the majority. Property investment contributes to construction activity, transaction-tax revenues and consumption, but does not necessarily generate export capacity or stable employment throughout the year. Average prices for new-build residential property reached €2,445 per square metre in the first quarter of 2026. Prices averaged €2,575 per square metre on the coast and €2,395 per square metre in Podgorica.
Higher property prices increase developers’ margins and the value of collateral while also raising housing costs for local workers. Montenegro has introduced additional requirements for property transactions under its anti-money-laundering framework. Real-estate transactions of €10,000 or more must be conducted through a Montenegrin bank account. The requirement increases transaction transparency, while difficulties associated with opening accounts for non-residents can extend transaction completion times and reduce liquidity at the margin.
