By Aleksandra Djordic · Adriatic & Balkans Property Editor
The Luštica Peninsula — a pine-forested promontory jutting into Boka Kotorska Bay — was largely undeveloped when Orascom Development Holding, the Swiss-listed developer, began acquiring land here in 2008. Over the following 15 years, they have invested over €650 million to create Luštica Bay from scratch: a full-service marina town with its own hotel portfolio, an 18-hole golf course, restaurants, a school, and an emerging permanent residential community that has attracted buyers from over 55 countries.
Developer: Orascom Development Holding
Orascom (SIX: ODHN) is a Swiss-listed real estate company specialising in large-scale resort communities, with comparable projects in Egypt (El Gouna), Oman (The Cove Rotana), and Switzerland (Andermatt). Their El Gouna project — now a self-sufficient town of 25,000 people on the Egyptian Red Sea coast — provides a 30-year proof of concept for the Luštica Bay model and has delivered consistent property value appreciation for early investors.
The Montenegrin government is a strategic partner in the development, with the country's EU accession trajectory (expected 2027–2028) providing a structural tailwind for property values across Montenegro. Orascom's stock market listing provides transparency into the project's financial health that purely private developers cannot offer.
Unit Types and Pricing
- Marina Apartments (Studio–2 bed) — From €180,000; the most affordable entry in a quality development of this scale in the Mediterranean.
- Town Houses (2–3 bed) — €320,000 to €580,000, within walking distance of the marina and restaurants.
- Hillside Villas (3–4 bed) — €650,000 to €1.4 million with Boka Bay panoramas.
- Beachfront Residences (3–5 bed) — €1.1–€2.8 million on Almara Beach.
Montenegro citizenship by investment: Montenegro's CBI programme (originally available until 2021) is officially closed, but Montenegro's EU accession — projected 2027–2028 — will make it possible for property owners to obtain EU residency through standard routes at that point. For now, property purchase qualifies for a temporary residence permit (renewable annually). The EU accession trajectory is a significant medium-term value driver.
Amenities and Destination Appeal
Luštica Bay's 178-berth marina accommodates yachts to 60 metres and has attracted a growing superyacht summer crowd. The Chedi Hotel (the first of five planned hotels, opened 2019) provides a five-star anchor and access point for villa owners seeking hotel services. The 18-hole Signature Golf Course opened in 2021. Multiple restaurants and a beach club at Almara Beach complete the current amenity suite, with further hotels and facilities in active construction.
Tivat Airport (TIV) — 20 minutes away — receives seasonal direct flights from London, Amsterdam, Frankfurt, and multiple Russian and Gulf cities. Dubrovnik Airport (DBV) in Croatia is 75 minutes away with a far broader year-round route network. The Bay of Kotor UNESCO World Heritage Site — the medieval walled city — is a 30-minute drive and provides a cultural attraction of international calibre.
Verdict: The best risk-adjusted play in the Western Balkans property market. Orascom's track record, the EU accession story, and entry prices well below comparable Mediterranean markets make this compelling for buyers with a 5–10 year horizon.