Luštica Bay is quickly establishing itself as a cornerstone of Montenegro’s luxury real estate and tourism sectors. With a focus on creating a vibrant community that offers a high-quality lifestyle, it is attracting international attention through strategic developments that integrate residential, commercial and leisure spaces.
As one of the country’s most significant investments, Luštica Bay is driving economic growth, creating jobs and boosting local industries. By fostering strong ties with Montenegrin suppliers and investing in community development, it is not only transforming the region, but also solidifying Montenegro’s place on the map of prime luxury investment destinations.
What is your strategic vision to drive Luštica Bay’s growth in the coming years?
— The vision for Luštica Bay is very clear: we want to become the prime destination in the Adriatic region, a fantastic best-in-class place. By this we mean a year-round destination where people can live, work, enjoy life and have a strong sense of belonging to this place.
The introduction of The Peaks golf residential collection and the strategic development of the golf course has swiftly propelled Luštica Bay into the global market of luxury real estate. How do you envisage the positioning of Luštica Bay as a prime destination and investment opportunity internationally?
— There’s no question that Luštica Bay is unique. We have so much value to generate. We have a big land bank to develop – and we’re just getting started. Our varied real estate portfolio in four neighbourhoods – from apartments to townhouses, villas and now the golf residences – is improving the value that we’re able to offer here at Luštica Bay even more.
Luštica Bay also continues to redefine Mediterranean living with the development of the country’s very first golf course. To commemorate its visionary construction, Luštica Bay this summer proudly hosted its inaugural event, together with sporting legend and leading voice in golf course design, Gary Player, taking the symbolic first swing.
The golf course joins Luštica Bay’s newest and most luxurious development to date, The Peaks, while it represents a major investment in Montenegro’s high-end real estate and tourism landscape. Conceived in such a way as to elevate this world-class destination while appealing to the growing interest in golf globally, this development sets a new standard of excellence in Montenegro and promises to attract both golfers and tourists on an international scale.
What is the approximate financial level of the resources that have gone into the Luštica Bay project to date?
— So far, over 470 million euros has been invested in the development, including in key elements such as the hotel, marina and real estate. At the same time, essential infrastructure – roads, water and sewage systems, power supplies and telecommunications – have also been constructed.
TOWN IN THE MAKING
Luštica Bay is today a place where over 400 families from over 40 countries feel like they belong. Once complete, the town will be home to:
• More than 6,000 residents
• More than 3,000 apartments
• Over 300 luxury villas with sea views
• Six more hotels (a total of seven, including The Chedi, which has already been established)
• The 4.9-km-long “Lungo Mare” promenade will connect the town with the glorious coastline, bays and beaches
What plans are in place for future investments in the project’s development?
— Near-term plans include the continued development of The Peaks neighbourhood and golf course and Centrale: the Luštica Bay town centre. Following the success of Marina Village, the new Horizon neighbourhood continues Luštica Bay’s growth as its newest and most coveted residential community. Over the next 15 years, Luštica Bay’s residential collection will provide more than 2,000 apartments and more than 300 luxury villas with sea views.
One of the key elements of your strategy is the collaboration between Andermatt Swiss Alps, as a subsidiary company, and Luštica Bay. What do you see as the main potential of this joint development strategy?
— The principle of working together with other destinations within the scope of the Orascom Development Community is close to my heart. In this way, Andermatt can lead sometimes, while Luštica Bay will lead at other times, each reinforcing the other and learning from one another. This is one of our strengths. But it’s not only about these two destinations, rather it relates to the entire universe of Orascom Development Holding – bringing the strengths of all destinations to work together for the shared benefit of all our customers.
In this first collaboration, we are introducing Luštica Bay to our customers and owners who have already bought into Andermatt – presenting a complementary destination that’s very close in terms of logistics and values. I think this Adriatic destination in Montenegro offers the perfect balance to our Andermatt Alpine destination.
Given the scale and economic significance of the Luštica Bay project, could you elaborate on the financial contributions and broader economic implications this development has had on Montenegro?
— The Luštica Bay project represents a major long-term investment, with the total investment expected to reach 1.6 billion euros by 2033. Its economic impact is substantial, contributing 755.1 million euros to Montenegro’s GDP when considering direct, indirect and induced effects. This development is not just an isolated investment; it actively engages over 2,000 companies, 70% of which are local Montenegrin suppliers, thus further boosting the local economy.
Moreover, our contributions to the state’s finances have been growing steadily. In 2023 alone, Luštica Bay paid 8.4 million euros into the national budget through VAT, taxes and other contributions. We expect these figures to continue to rise as construction and development progress, demonstrating our long-term commitment to Montenegro’s prosperity.
Who are the residents of Luštica Bay?
— The aim is for Luštica Bay real estate owners to not only be property owners, but also members of the community – future neighbours, as well as business owners that leave a mark on the identity of this town in the making. The buyer pool comprises individuals and families of over 40 different nationalities, originating from the countries of the region, but also Western and Eastern Europe.
What is the volume of project investments that benefit the local community directly?
— Luštica Bay is committed to creating long-term value for the local community through destination development, donations and sponsorships. Since the establishment of the company, Luštica Development has invested more than 2.5 million euros in various projects with beneficiary stakeholders identified within the local community and that aid in advancing fields like education, culture and sport.
Moreover, through the engagement of local suppliers and partners, the company contributes directly to the growth of the economy, the tourism industry and the development of human capital: of the 609 employees in the town in the making that is Luštica Bay, within the company, 80% hail from Montenegro.
Luštica Bay has already transformed the demographic landscape of the Luštica Peninsula and the Municipality of Tivat. Given its impact, this project represents a key priority and is poised to accommodate Tivat’s growing population, while driving tourism growth in both Tivat and across Montenegro as a whole.
