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Grinning in Montenegro - 2 July 2007

An influx of celebrities and wealthy business figures buying land and property in the Balkan state of Montenegro has caused a sharp rise in prices, with some reports suggesting that property has doubled in value in certain areas.

Added to the attraction of celebrity buyers, Montenegro’s recent independence from Serbia has provided a further boost to the property market. While Montenegro has been selling property to foreign investors for some time now, the lack of direct flights to the country has kept market growth down below the stratospheric levels of places like Bulgaria. At present, potential investors usually fly to Croatia and drive across the border to the resort developments around the Bay of Kotor.

Some of the star names who already own property in the area or are reported to have been seen looking at investments include Michael Douglas, Donald Trump, Chelsea Football Club owner Roman Abramovich, former Formula One champion Michael Schumacher and the tennis dynasty of the Williams sisters.

The reported prices rises of both land and existing property are fuelled by the comparative lack of new-build properties on the market and the spectacular coastline and mountain environments, which the government is keen to protect from over-development. Therefore, the best current properties and plots of land are attracting a price premium that is reflected down through the whole market.

Direct flights from the UK to Montenegro are expected to begin in the near future, which will further accelerate the development of the property market. In the meantime, Austrian airlines have announced a further option for those passengers looking to get to Montenegro, with daily flights from Vienna to Podgorica.

 

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