RESEARCH & FORECAST REPORT
Montenegro 2017 Overview
Summary
Recent Trends
In the past decade Montenegro has shown considerable
growth, and many consider the country one of the fastest
rising tourism markets in the world. With its stable economic
growth over the past few years, it is sure to continue to attract
foreign investments in the foreseeable future. The only
downside of such trends is that development has largely been
concentrated on retail and hospitality sectors, whereas the
industrial market has been largely left in the backdrop.
Prognosis
With the country directing its inflow of investments into
tourism, it is very likely that new structures will continue to be
built to accommodate the demands of the market. The new
road infrastructure and air connections should allow not only
a better and faster connection between the southern and
northern region, which would again present a valuable
opportunity for new projects in the northern parts of the
country, but this will largely depend on external factors.
 Economic Overview
Summary & Prognosis Unemployment (% of active population)

> Introduction: Montenegro is an upper middle income

country, with a small open economy. The country is in 19.5% 18.0% 17.6% 17.1%
transition towards a market based economy and integration 16.1% 15.3%
into the EU. Steady progress has been made on key reforms
geared towards EU integration. However, further structural
and institutional changes are required. The economy
continues to be over reliant on the state and unprofitable state
owned companies are kept afloat by public
finance. Unemployment and regional differences in 2013 2014 2015 2016 2017 2018

development are also key political and economic issues.

Source: Montenegro Statistical Office
> Key Economic Indicators are summarized in the following
> Economic Performance: The real growth rate of GDP in
table:
the second quarter of 2018 was 4.9%, following a growth rate
Economic Figures of 4.5% in the previous quarter. The average growth rate for
EU countries at the time was 2.2%, and Montenegro has
2015 2016 2017 2018F 2019F remained as one of the strongest performers in the region and
Actual Europe as a whole. While both goods and services exports
Nominal grew, import is still strong, reflecting machinery for the
GDP € 3,625 3,954 4,299 4.492F 4,692F highway, and tourism and energy investments, which are
millions driving the expansion of the current account deficit. GDP
Real GDP
% Change
3.4 2.9 4.7 2.8F 3.0F Annual Growth Rate in Montenegro averaged 2.31% from
Inflation 2001 until 2016, reaching an all-time high of 10.7% in the
CPI Year 1.4 0.9 2.4 1.9F 1.8F fourth quarter of 2007 and a record low of -5.7% in the fourth
End quarter of 2009.
% of GDP
Current Average monthly gross earnings (€/month)
Account (13.3) (19.0) (20.2) (21.2)F (18.8)F
Balance
Foreign 765
Direct 17.1 9.8 10.3 10.4F 11.3F
Investment
External 748
163.1 166.8 169.8 173.5F 164.2F
Debt

Exports 3.9 (0.1) 1.8 1.7F 1.8F

727 726 725
723
Imports (6.6) (9.3) (4.1) (4.7)F (3.5)F

Source: IMF

GDP (annual var in %) 2012 2013 2014 2015 2016 2017

Source: Montenegro Statistical Office

-2.7% 1.8%
2.1%
3.0% > Economic Sectors: Tourism and the export of refined
3.4% 2.8% metals are major economic sectors. Significant natural
resources include bauxite, hydroelectricity and, for tourism,
the coast and climate. A large aluminum complex and much
3.5% of the financial sector have been privatized, and a large part
of foreign direct investments focus on the hospitality industry.
The following table indicates the composition of the economy
by broad economic sector, based on employment by sector
in September 2018.

Source: IMF

2 Research and forecast report | 2018 | Montenegro | Colliers International

 Economic Overview

Employed percentage of workforce per sector > Taxation: The tax system that was reformed in 2001, made
Montenegro’s tax regime one of the most competitive in the
region and Europe as a whole. The rates of significant taxes
are as follows:
8.7% Agriculture
> Personal Income Tax 9%.
18.8% > Corporation Tax: 9%.
Industry > VAT: 21%, 7% (includes hotel accommodation) and 0%.
> Withholding Tax: 9%.
72.5%
> Social Security Charges: Employer 9.8% and Employee
Services 24%.
> Property tax is levied at proportional rates from between
0.1% and 1.0%.
Source: Montenegro Statistical Office, Labor Force Survey 2rd Q2018
> Property transfer tax of 3% of the property’s value is
> Foreign Trade: Major export partners in Montenegro in
payable by the buyer.
2018 were Serbia (around 21.2% of total exports), Hungary
(12.7%) and Bosnia and Herzegovina (7.6%). The major
import partners were Serbia (19.6% of total imports), China Prognosis
(10.7%) and Germany (8.8%).
Montenegro has significant growth potential. GDP grew by
> Exchange Rate: Montenegro adopted the German mark 4.7% in 2017 (IMF forecasts were set at 2.5%) and is forecast
in 1999, then the euro on its introduction in 2002 by the IMF to grow by 2.8% in 2018 and 3.0% in 2019. The
rate of growth in the medium to long term will be influenced
Year End 2013 2014 2015 2016 2017 2018 by progress towards membership of the EU and is dependent
on addressing a number of challenges. EBRD and the
US$ per € 1.37 1.23 1.15 1.11 1.07 1.14
government have identified the following challenges to be
Russian addressed:
45.3 72.3 68.07 74.14 63.9 74.9
Rubles/ €
> Diversifying and expanding the economic base through
Source: European Central Bank increased competitiveness, including targeted support to
> Employment: 85.5% of the total economically active work SMEs in sectors with growth potential and further
force (280,700) was in employment and 14.4% were strengthening of the financial system.
unemployed as of September 2018. Employment of > Supporting sustainable tourism, property and associated
expatriates is regulated by the Law on Employment of environmental and infrastructure needs. The tourism
Foreign Citizens. For an expatriate employee a work permit, sector is a major potential driver of economic growth. This
permanent or temporary residence permit and an involves addressing the lack of institutional and
employment contract are obligatory. The Government has an infrastructure, and avoiding the environmental risks of
annual maximum quota of foreigners to be employed. Foreign further tourism development.
employees are entitled to equal treatment as local
employees. > Introducing energy security and efficiency, and regional
integration of energy markets.

3 Research and forecast report | 2018 | Montenegro | Colliers International

 Tourism Overview
Summary Tourist arrivals and overnight stays, total
2013-2017
11,250 11,953
Tourism is a crucial economic sector in Montenegro. World 11,055
9,412 9,554
Travel and Tourism Council (WTTC) estimated that tourism

Thousands
accounts in excess of 10% of total GDP, although local
estimates consider it to be higher. Tourism policies and
strategies, development, operations and marketing are the 1,492 1,517 1,713 1,814 2,000
responsibility of the Ministry of Sustainable Development and
Tourism, with the National Tourism Organization responsible
for planning and implementation tourism strategies,
promotion and enhancing the tourism product. Local tourism
Arrivals Overnight stays
organizations are active in 19 municipalities. The Tourism
Development Strategy to 2020, which was formulated in 2008
with international expert assistance, guides all aspects of Tourist Arrivals and Nights: Foreign tourism (nights and
tourism and its development. This followed a tourism master arrivals) has grown annually, with the exception of 2009 when
plan that was adopted by government in 2001. tourist nights declined, due to the global economic crisis.
Domestic tourism has fluctuated, but has declined in recent
Montenegro’s tourism product is subdivided into six clusters, years. Nevertheless, the number of overnight stays in
whose scenic and cultural traits differ from each other, in the Montenegro has grown steadily over the years, with a large
Tourism Strategy. increase in 2016, a trend that continued in 2017 and 2018.
> The rocky coastline from Lustica to Ulcinj, with many bays Accommodation is divided in two groups, collective and
and beaches, is the major beach tourism destination and private accommodation. At this moment, no reliable
includes Budva. information is available for the total number of tourist arrivals
and nights spent in 2018, but monthly reports from the
> Ulcinj, which has an expansive sandy beach, with Ada Statistical Office indicate further growth for the summer
Bojana and Valdanos. season (from May to September) by 10.9% in the number of
> The Bay of Kotor, a cultural area surrounded by cliffs, arrivals, and 6.9% in the number of nights spent.
together with Tivat Bay and the Lustica peninsula. The natural
Collective
and cultural-historic features of the Kotor region are a 2014 2015 2016 2017
Accommodation
UNESCO World Heritage Site. Tourist Arrivals 000s
> Cetinje, of historic significance, and Skadar Lake, an area Foreign 595 636 708 843
of natural beauty. Domestic 81 98 101 112

> Durmitor and Sinjajevina, mountainous regions with the Total 676 733 808 955
Tara canyon and the national park. Durmitor National Park is Tourist Arrivals % Growth
(Decline)
a UNESCO World heritage Site.
Foreign 4.8 6.8 11.3 19.0
> Bjelasica, Komovi and Prokletije, mountainous areas with Domestic (4.4) 20.9 3.0 10.8
national parks, monasteries and mosques.
Total (2.6) 8.5 10.2 18.1
Official statistics cover tourists staying in registered tourist Tourist Nights 000s
accommodation. However, this understates tourism demand Foreign 2,720 2,843 3,114 3,459
because they exclude tourists in unregistered
Domestic 364 403 408 431
accommodation (the “grey” market).
Total 3,085 3,247 3,521 3,890
The coast between Budva and Bar is the main tourism zone. Tourist nights % Growth
It accounts for approximately 55% of all tourist nights in (Decline)
registered accommodation. There is also a significant Foreign 3.3 2.2 19.9 1.4
demand for unregistered accommodation. There was Domestic (1.0) (4.1) (22) (5.9)
extensive real estate development, particularly apartment Total (1.2) 5.3 8.4 10.5
blocks, in the period from independence to the global Source: Montenegro Statistical Office, 2018
economic crisis. Now, many projects are incomplete or
remain undeveloped. In peak season there is pressure on
utilities and infrastructure, and beaches are crowded.

4 Research and forecast report | 2018 | Montenegro | Colliers International

 Tourism Overview
Tourist Nights by Type of Accommodation: The majority Tourist Nights 000s
(67% in 2017) of tourists stay in private accommodation Destination
Foreign Domestic Total
(private, rooms, houses and apartments). Hotels accounted
for 23% of tourist nights. Budva 4,731 93.9 4,824

Tourist Arrivals by Destination Type: The vast majority Herceg Novi 2,203 139.8 2,344
(approximately 94.9% in 2017) of tourist arrivals stay in
Other 4,536 249.3 4,785
seaside resorts. Podgorica attracts demand in its role as the
capital city. Mountain resorts attract limited demand for Total 11,470 483 11,953
winter sports and summer nature tourism.
% of Total
Destination
Destination Type % of Tourist Arrivals
Foreign Domestic Total
Seaside Resorts 94.9
Budva 41.2 19.4 40.4
Capital City (Podgorica) 2.2
Herceg Novi 19.2 28.9 19.6
Mountain Resorts 1.6
Other 1.3 Other 39.6 51.7 40
Total 100.0 Total 100.0 100.0 100.0
Source: Montenegro Statistical Office
Source: Montenegro Statistical Office
Country of Origin of Foreign Tourists: Russia and Serbia
Seasonality: Tourist demand peaks significantly in the
generate the majority of tourist demand (around 52.4% of summer months, reflecting the dominance of beach related
foreign tourist nights in 2017), followed by Eastern European tourism. The months between June and September
countries. Demand from Western Europe is limited, led by accounted for 81.8% of tourist nights in 2017. The two peak
Germany and France (each 2.7% and 2.6% of foreign tourist months, July and August, accounted for over 59.9% of tourist
nights respectively). nights.

Tourist overnights by country of origin, 2017 Tourism overnights distribution by months in

Montenegro
Russia 4,000
26.7% 3,500
24.3% Serbia
3,000
Thousands

BiH 2,500

Montenegro 2,000
3.8%
1,500
4% 25.7% Ukraine
1,000
9.4%
Other 500

0
Source: Montenegro Statistical Office

Overnight Stays by Destination: Budva is Montenegro’s Foreign Domestic

major tourist destination, accounting for 42.4% total arrivals
and 40.4% of total nights spent in 2017, and research Source: Montenegro Statistical Office
estimates that it will stay a hotspot for tourists in the following
years. Herceg Novi accounts for 14.7% of arrivals and 19.6%
of total tourist nights spent in 2017.

5 Research and forecast report | 2018 | Montenegro | Colliers International

 Transport
Summary Airline
% of
Passengers
Routes
% of
Passengers
Croatia Airlines 19.8% London 14.0%
Montenegro’s small size, geographic location, topography
EasyJet 10.9% Zagreb 8,1%
and its strong reliance on tourism and agriculture, increase
the importance of developing an effective transport system Vueling Airlines 5.4% Paris 5.9%
that is integrated with those of the nearby countries in the Norwegian Air 5.0% Barcelona 3.4%
region. Thomson
4.6% Manchester 3.1%
Airways
> Air: Passengers handled at the two airports, summarized Jet2.com 4.6% Helsinki 2.7%
in the following table, increased by 40% from 2008 to 2014. Lufthansa 4.1% Amsterdam 2.6%
In addition, tourists access Montenegro’s coast via
British Airways 3.8% Madrid 2.6%
neighboring airports, particularly via Dubrovnik Airport in
Austrian
Croatia. Airlines
3.6% Stockholm 2.6%

> Podgorica Airport, is located 12 km south of Podgorica Travel Service 2.8% Dublin 2.6%
city centre and 115 km from Herceg Novi. The airport has two Source: Dubrovnik Airport, 2016
runways. The new terminal (2006) has an annual capacity of > Future Developments: Proposed future airport
1 million passengers. The old terminal has been completely development in Montenegro is the subject of a master plan
renovated and is used for VIPs and general aviation. covering the period to 2030. Plans include further upgrade
Destinations served by scheduled flights are Belgrade, and increase of capacity at Podgorica Airport and Tivat
Frankfurt, Istanbul, London, Ljubljana, Paris, Rome, Moscow, Airport (with a new passenger terminal, increased taxiways
Vienna, Zurich, Milano, and Stockholm. There are also and new apron areas). Long term proposals include a new
additional seasonal and charter flights during the summer. international airport operation at Berane in the northeast part
of the country. A tender for the privatisation of Podgorica and
> Tivat Airport is located by the coastal road 4 km from Tivat
Tivat airports is to be released within the next two months.
and 25 km southeast of Herceg Novi (via the car ferry linking
The airport is undergoing an expansion that will increase its
Kamenari and Lepetane). The refurbished and upgraded annual capacity to 3.5 million passengers.
terminal has an annual capacity of one million passengers.
However, the vast majority (over 80%) of passengers arrive > Road: Montenegro’s road network totals 7,000 km, of which
in the summer period when there are seasonal and charter 884 km are main and primary roads, 964 km regional and
flights from throughout Europe. This results in the passenger secondary roads, and 5,000 km roads. There is considerable
terminal operating at capacity at peak times in the summer. disparity in road conditions between the coastal and
mountainous areas. Significant investment is needed in much
Podgorica Airport Tivat Airport of the road network, despite improvements in and around
Podgorica and some of the most concentrated tourism areas
Passengers Change Passengers Change such as Budva.
000s % 000s %
2011 612 -6% 647 19% > Rail: The rail network comprises 428 km of single line
2012 620 1% 726 12% track, of which 168 km are electrified. Key sections of the rail
network have been rehabilitated and rolling stock upgrading
2013 681 10% 868 20%
has taken place.
2014 701 3% 911 5%
> Sea: Montenegro has three active sea ports: Bar (largest
2015 748 6% 895 -3%
port in Montenegro that handles both cargo and passengers),
2016 873 16% 982 10%
Kotor (the main cruise ship port) and Zelenika. There is also
2017 1,055 20% 1,129 14.9% a chain of marinas along the coast. The major marinas
Source: Airports of Montenegro include those located at Ulcinj, Bar, Budva, Tivat, Kotor,
> Dubrovnik Airport, located in Croatia 30 km northwest of Zelenika and Herceg Novi.
Herceg Novi. The Airport handled 1.99 million passengers in > Transport Strategy: Montenegro’s strategy is to integrate
2016, 17% more compared to 2015. The result in 2016 is 7% its transport network into the regional transport network, to
larger than number of passengers handled by Podgorica and improve communications with neighboring countries. Road
Tivat airports combined. Major airlines and routes at network proposals include implementation of two major
Dubrovnik Airport are summarized in the following table. highway corridors: the Bar - Boljare highway (pan European
road networks) and the E65/E80 Adriatic Highway (Italy –
Greece road connection). However, there is uncertainty over
the financing of these major projects.

6 Research and forecast report | 2018 | Montenegro | Colliers International

 Office Market
Summary Demand
The core of business activity is located in Podgorica, Demand is driven by new companies, expansion of those
therefore it presents a business hub of Montenegro. already present on the market, as well as companies
Currently, Podgorica’s Central Business District (CBD) is currently occupying lower standard offices.
located on and around the Roman Square which is commonly
The majority of demand will continue to come from
referred to as Vektra Square after the construction of the first
international and local companies that are actively looking to
major development, Vektra business center. The secondary
relocate from older and lower standard office buildings to
business district of Podgorica is located east of the Roman
newer and modern buildings.
Square, towards the city center. This area has historically
been called “Across the Morača“, originally a residential Modern Office Building Stock
suburb with uniform high-rise apartment buildings. The city
Business
center and its neighboring areas are also considered to be Project GLA
District
the secondary business district. Even though a few new office Ex Hypo Alphe Adria
Central 4,500
buildings are present, it is unsuitable for investors to develop Bank
large office developments within this area due to smaller land Kroling Central 3,000
parcels. Building between T-HB Central 4,500

Business districts “Professor’s Building” Central 3,000

Cijevna Komerc Central 5,500
Normal Tower Central 6,515
Europoint Central 8,895

Capital Plaza Central 16,000

Universal Capital Bank Secondary 6,000
Hidromol Secondary 3,000
Palada Secondary 1,000
Šofranac Secondary 1,100

Čelebić Building Secondary 6,000

Source: Colliers International Montenegro Total 69,010

Class A Offices location Source: Colliers international Montenegro

Source: Colliers International Montenegro
Rents
Rental levels for modern office space in Podgorica range
between 14 – 22 EUR/m²/month. Class A office buildings on
good locations can be rented at 17 EUR/m²/month. Lower
quality office space price varies between 10 – 14
EUR/m²/month. The range of the rental prices for office space
units in prime downtown streets and around the Roman
Square which are located within residential projects is
between 10 – 15 EUR/m²/month, depending on the age, size,
condition and visibility of the unit. Office units that are a part
of residential buildings, on unattractive position command
lower rental prices of approximately 5 – 7 EUR/m²/month.

Modern Class A office buildings include Europoint, Normal

Tower, Capital Plaza, Cijevna Komerc/Societe General
headquarter, Millennium Center and Celebic Business
Center.

7 Research and forecast report | 2018 | Montenegro | Colliers International

 Office Market
Yields
New Class A office stock supply in 2016 in Podgorica Lack of comparable evidence and a limited amount of deals
amounted to approximately 8,000 m² of gross leasable area. has been experienced during the previous months. Hence,
This new stock relates to the completion of the Čelebic City there is uncertainty regarding yield rates for the office
Center. premises in the area. However according to experts opinion,
prime yields are estimated at around 9 % - 10%.
Čelebić City Center

Pipeline and Prognosis

Project Business center by investor Čelebić brought to the
market new 8,000 m2 of office space and 5,900 m2 of
shopping mall, with 140 parking places. Besides this, Normal
Company started building a 5000 m2 A class office building in
the area across river Morača in 2017, next to the hotel
Podgorica. Due to the new supply and lower demand for the
A class office space we are expecting further decrease of
rents in the next year.
The Capital Plaza is located close to the Delta City mall, one
of the busiest areas of the capital. The complex started
Source: www.skyscrapercity.com business in September 2015, and most capacities have been
put to use. The office has approximately 4,000 m 2 of office
Asking Rental Price
space remaining for sale in the gray phase (ground floor,
Project Business District Rent EUR/m2 1st,2nd,3rd and 8th floor), with prices ranging from 1,900 to
3,300 EUR/m2, and the price depending largely on the floor
Capital Plaza* Central 14-22
where the space is located, with prices on higher floors being
Normal Tower* Central 13-17 more affordable.
Europoint* Central 13 In early 2018 construction company “Zeta Gradnja” started
building a new large scale project, located between the
Čelebić Building Secondary 16
Capital Plaza and the Delta City mall. The complex will
Cijevna Komerc Secondary 17 consist of eight buildings, and all available capacities will be
Source: Colliers Montenegro *Additional service charges not included intended for sale. The complex is planned to concentrate on
selling office and retail space, with a focus on office
Demand for office space in Podgorica significantly increased capacities. Construction completion is planned by the end of
in 2016 compared to the previous periods. The vacancy rate 2024, with a total capacity of 10,000 m2, but sales are planned
in Podgorica is around 15%., with expectation of stabilization to start while it is in its gray phase, by the end of 2019, when
below 10% vacancy by the end of 2018 when the new around 2,500m2 of space will be ready for sale. Prices are
developments are properly absorbed. estimated to average at about 2000 EUR.

8 Research and forecast report | 2018 | Montenegro | Colliers International

 Residential/HTL Market
Summary
The economic and financial crisis caused a decline in
residential sales in the last few years, which led to a surplus
of the number of apartment units that have been developed
and are available throughout Montenegro. Moreover, the
disruption of relations between Russia and Ukraine has
further negatively affected the Montenegrin real estate
market resulting in very poor sales in recent years. Russians
and Ukrainian citizens accounted for more that 70 percent of
residential purchases on the coast in recent years. However,
2016 marked the return of British tourists and a number of
other investors from Ex Yu countries, western and northern
Europe who chose Montenegro as a second home
destination. Slower recovery is expected as the market is still
heavily reliant on Russian tourists as well as Eastern
European travelers whose numbers are declining and a large
number of Western European travelers cannot replace the
reduced number of Russian buyers from previous years.
The most successful projects in Podgorica today are located
in the once industrial zone, where the Radoje Dakic factory
was located, and is now known as City Quart. Celebic and
Zetagradnja construction companies finished a new phase of
twelve buildings and most of the apartments have been sold.
The City Quart is located in the vicinity of the Delta City mall,
which is one of the most attractive locations for locals.
Sales Prices
The average sales price of the residential units per m² in
Montenegro in Q2 2018 was 1,081 EUR/m², which represents
a decrease by 1.9% when compared to Q2 2017, and 7.0%
less than prices recorded in Q1 2018. Average sale prices for
Q3 2018 have not yet been published, and reports done by
the Statistical Office of Montenegro do not provide price data
based on individual towns anymore, but offer estimates
based on broader regions (coastal, central, northern and the
capital). Highest apartment prices were recorded in the
coastal region, averaging at 1,433 EUR/m 2 (vs. 1,355
EUR/m2) for Q1). The average price per m² in Podgorica in Q2
Domestic investors that had the biggest impact on the
Montenegrin market in 2017 were construction companies
Čelebić and Zetagradnja. The most attractive investment
destinations in Montenegro in 2017 and 2018 were: Budva
municipality, Tivat municipality, Petrovac, Dobre Vode,
Utjeha, and Herceg Novi.
Porto Montenegro
Porto Montenegro is one of the Mediterranean’s leading
luxury yacht homeport, with residential and business
premises. It is nominated as the possible candidate for
prestigious award in the category “Best International Marina”
which will be granted for period 2015/2016 by the Marina
Industries Association (MIA) from Australia. Residential
complex of Porto Montenegro Marina currently consists of 6
properties. One of the important benefits which Porto
Montenegro offers to its users is tax and duty-free fuel.
The construction of next phase of complex, a luxury
hotel/residential development Regent Pool club has already
completed. It includes apartment units from 74 m2 to 344 m2,
with secured underground parking places. The total
investment of the new complex is 35 million EUR. The new
phase of RPCR with total of 70 apartments has started and
will be delivered to the market in 2019 year.
Average Sales Prices (EUR)
(Q2 2017 - Q2 2018)
1,200
1,150
1,100
1,050
1,000
950
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
Montenegro Podgorica
Source: Montenegro Statistical Office

was around 1,021 EUR/m², while prices in the central and

northern region averaged at about 730 EUR/m². Apartment
sizes between 50 m² and 60 m² were the most attractive and
frequently sold in 2017.
The real estate market of Montenegro experienced low
construction activity during the previous years except for the
coastal region, which is recognized as the most attractive part
of the country for new investments, due to its position, natural
beauty and economic potential.

9 Research and forecast report | 2018 | Montenegro | Colliers International

Residential/HTL Market
Luštica Bay Portonovi
Luštica Bay is an investment worth 1.1 billion EUR, and was Porto Novi is an ongoing project, developed by the Azerbaijan
undertaken by the Swiss - Egyptian company “Orascom investors. Construction works on the first phase of the
Development”. The first phase of 10 buildings with 70 units, apartments are almost done including marina. The part of the
is completed and all units have been sold, and 80% of project will be One&Only hotel with 110 luxurious rooms and
apartments planned in second phase including apartments in will have additional branded apartments and villas. The future
hotel Chedi are reserved or sold. Prices of residential units project will be positioned in Kumbor, near Herceg Novi, on
range from 4,500 to 6,000 EUR/m2. They launched first phase the 60 hectar of land. The date of completion of One & Only
of “Centrale” residencies which will offer much more is scheduled for 2019. The prices of the apartments ranges
affordable prices of the apartments starting from 2,300 between 6,000 EUR/m2 up to 11,000 EUR/m2.
EUR/m2. The residences vary from studios to three bedroom
apartments, covering 45 to 110 square metres of space.
Large, airy windows provide a full view of the scenery.
Comfortable living areas are planned to make best use of
space with a connected kitchen and dining zones. The rooms
flow naturally into balconies, open terraces and courtyards
making for seamless indoor-outdoor living that luxuriates in
the year-round, Mediterranean sunshine. The structure of
buyers is presented in the following chart:
Luxury residence Luštica Bay, buyer structure

Source: Colliers International Montenegro
Dukley Gardens
A luxury complex of residences Dukley Garden was
completed 2015. It is located on peninsula of Zavala, in city
of Budva. Resident units in Dukley gardens have asking
prices from 4,500 to 7,500 EUR/m2.

rket
The buyer structure is based on five groups: Western Balkan
countries hold the largest share, Russians are on the second
place with 25%, while the rest of the buyers come from
Buyers of Dukley Garden residential complex are mainly from
Russia (70%). Other buyers are mostly from Ukraine, France
Switzerland, Middle East and UK. It is planned that the project and UK. The structure of the origin of buyers is presented in
will comprise seven hotels, two marinas, a spa and wellness the following chart:
center, a sport center and other amenities. Luxury residence Dukley Gardens, buyer structure

Source: Colliers International Montenegro

10 Research and forecast report | 2018 | Montenegro | Colliers International

Retail Market

Supply and Demand

Monthly rent/m 2 per category (range)

Even though Podgorica is a small capital city compared to Food court

neighboring capitals in the region, its retail segment is quite
Inline tenants (small shops)
expansive. If the relationship between population and the
gross leasable area of existing shopping centers is observed Inline tenants (120-200m2)
Podgorica has more than adequate modern retail space. Mini Tenants
According to the most recent available data, Podgorica has a
population of about 220,000 inhabitants and an area of Anchor Tenants

60.000 m² GLA of shopping centers, which results in a Hypermarkets

shopping center ratio of 272 m² per 1,000 inhabitants.
€0 €10 €20 €30 €40
Key Retail Figures – Podgorica Source: Colliers International Montenegro
Project GLA Opening Date

Delta City 24,000 2008 Pipeline and Prognosis

Mall of Montenegro 15,000 2010
Capital Plaza Business Center occupies 100,000 m² of GBA
Bazar 8,000 2012 and is worth around 150 million EUR. Apart from office, retail
and residential space which is converted into office space it
Capital Plaza 9,200 2015
includes „Centreville hotel”. Office space is already taken by
City Mall 5,900 2016 various international tenants such as DHL, the UAE
Source: Colliers International Montenegro Embassy, Fly Montenegro, Atlas Bank, UNIQA, Microsoft,
ADDIKO bank, Hard Rock Cafe, Elite restaurant and bar.
Rents & Vacancy Rate Retail space was opened to the public on 18th of September,
and 90% of available space is already leased. Open air retail
space covers an area of approx. 9.200 m² GLA on two floors.
The average rental price in the largest shopping center in
Among the first tenants on the ground floor are XYZ, Antony
Podgorica Delta City is approximately 22 EUR/m²/monthly. In
Morato, Gant and Evita Peroni. New small shopping center
the second largest shopping center Mall of Montenegro it is
Forum brought to the market additional 1,600 m 2 GLA. In
estimated at 17 EUR/m²/monthly, City Mall 10
comparison with the capital towns in the region Podgorica is
EUR/m2/monthly, Capital Plaza 15 EUR/m2/monthly. In the
still recording lower ratio of shopping centers/inhabitants
“Bazar”, a relatively smaller shopping center in Blok V, the
which is at the level of 272 m2 of shopping centers per 1,000
range of achieved rental prices is between 7 and 15 EUR/m².
inhabitants, especially when comparing with regional centers
Specific to this shopping center is that more than 50% of the
in Croatia, Slovenia and BIH where this ratio is between 600-
retail space is sold to the local retailers. The table below
1000m2 per 1,000 inhabitants. We are expecting that the level
indicates the net rental levels within the shopping centers,
of the rents and occupancy rates will be on the similar level
depending on size and position within the shopping center.
in 2018 in comparison to 2017.
As a result of market non-transparency, rental level
breakdown by tenant category represent approximations.

Main shopping malls in Podgorica

8%
Delta City
16% Mall of
39%
Montenegro
Bazar
13% Capital Plaza
City Mall
24%

Source: Colliers International Montenegro

11 Research and forecast report | 2018 | Montenegro | Colliers International

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12 Research and forecast report | 2018 | Montenegro | Colliers International