New Golf Course To Boost Montenegro Property Market
News Posted On: 18 October 2012
The world of overseas property has been a pretty bleak one over the last 4-5 years, in fact to find a metaphor I would call it a black hole that light is unable to exist near as it is sucked in. That is to say that while a handful of markets in the world have stayed positive, news of them has barely been able to reach out beyond the blackness.
According to what little reports have been available, Montenegro is one of the few markets in the world that remained positive during the financial crisis, or at least saw very little of the negative effects that became so common place.
Montenegro is a small country with a very small mortgage market, and prices were never scintillatingly low. Because this led to it primarily attracting wealthy lifestlye buyers, there was less panic selling which kept prices from a drastic correction. Another factor is the lengthy planning application process in Montenegro, according to experts most developers were left holding land-banks when the crisis struck, unlike Dubai for example where they were left with half-finished-developments. This meant that the developers simply postponed developments for a better day, rather than being forced to push on and add oversupply to a low-demand market.
Now that things are once again starting to look up for overseas property, Montenegro looks well placed for a revival. This will hardly be hurt by the news that the country is to receive its first European PGA golf course in Kavac overlooking the Bay of Kotor.
The WTTC already predicts that Montenegro will be the fastest growing tourism destination within 10 years. By 2021, tourism is expected to contribute €2bn (£1.6bn) or 37.3% of GDP, with the world's highest projected annual growth rate for investment of 16.4%pa.
The course, which will about two and a half years to complete, will be adjacent to the recently launched Sea Breeze development in Kavac and just five minutes from Europe's newest and most exclusive mega yacht marina at Porto Montenegro.
John Kennedy, founder of the Boka Group and Sea Breeze developer. said: “This is a major development in the leisure profile of Montenegro; it is not just the first golf course on the eastern side of the Adriatic, but it's a facility that will change the profile of the Kavac and Tivat areas forever. For Sea Breeze, the first luxury villas on the market in the golf zone, it means a massive upside in terms of both facility and letting potential for our buyers. They will benefit from being the first completed properties in the zone and from €181m of someone else's money pouring into their direct environment and adding value as a result. We predict that PGA golf on the door-step will now increase rental-yield and volume as well as adding significantly to capital gain potential."
Another big development in Montenegro'sf future is EU accession, which is still widely predicted to be achieved by 2016.
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Written by Les Calvert
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