Property: The jewel of the Adriatic

There are many beautiful resorts around the world, incorporating stunning sandy beaches and breath-taking views; however, most are spoilt with over-development or require long haul flights.

An area of Eastern Europe, that has been named as the number one destination for tourism growth worldwide for the next 10 years, but is considerably underdeveloped is Montenegro.

The Republic of Montenegro officially declared its independence from Serbia on June 3 2006 and is pursuing membership in the World Trade Organisation (WTO), the European Union, and NATO. It formally requested talks to join the EU in December 2008 and was awarded candidate status in December 2010.

Negotiations regarding the accession to the EU were approved on October 12 2011. After gradually pulling away from Serbia in the past decade, Montenegro introduced significant privatisation and now uses the euro as its legal tender, in spite of not yet being a member of the eurozone.

Many people will remember Montenegro as the setting for Casino Royale in the James Bond film of the same name - although it wasn’t actually filmed in Montenegro. While Montenegro has all the charm of a James Bond film, many areas are considerably underdeveloped, leaving unspoilt beaches, golden sand and dramatic views of the surrounding mountains.

The WTO confirmed that Montenegro has one of the fastest tourism growths worldwide. Similar to Croatia in terms of coastal geography and a relaxed way of life, Montenegro has benefited from Croatia’s huge and rapid success as a place to visit and acquire property; however, also offering significant areas of undeveloped land and the scenery is reminiscent of Greece 30 years ago.

The real estate market in Montenegro is still in its infancy, but growth is significant. The rate of this emergence is the outcome of privatisation, restitution and rapid growth in the tourism industry, allowing foreign nationals to explore and uncover a relatively underdeveloped country.

The Montenegrin real estate market is materially undervalued and there is huge demand from foreigners seeking a luxury holiday home away from long cold winters. Many investors, due to the growing investment market, have enjoyed enhanced returns from rental income due to a finite amount of good quality stock in what has been described as the jewel of the Adriatic.

Leading international hotel operators such as Banyan Tree, Hilton, Amman, Wyndham Grand, among others, are beginning to move into the country; therefore attracting visitors seeking a luxury break from around Europe as well as Russia and the Middle East. During the first six months of 2011, the total revenue from tourism alone was estimated at €124.3m (£106.3m), about 6.6 per cent more compared with the same period in 2010 and this growth is forecast to continue.