Mohamed Alabbar, the Dubai-based developer, is set to initiate significant investments in Montenegro, focusing on the southern coastline, particularly in the Štoj and Velika Plaža regions near Ulcinj. This shift indicates a potential reorientation of Montenegro’s tourism and real estate development away from the increasingly crowded Budva area.
The chairman of Eagle Hills has expressed that Montenegro possesses “strong but underutilised potential,” highlighting existing gaps in project scale and execution that could be filled through comprehensive master-planned developments. The emphasis on Štoj is strategic, given its location behind Velika Plaža—one of the Adriatic’s longest beaches—and represents one of the last substantial undeveloped coastal areas in the nation.
In contrast to Budva, where land scarcity and fragmented ownership pose challenges for large-scale projects, Ulcinj presents opportunities for greenfield, master-planned investment at scale, similar to previous Eagle Hills projects in locations like Belgrade Waterfront.
Recent talks with local landowners reveal a departure from conventional acquisition methods. Instead of outright purchases or long-term leases, Alabbar is suggesting a joint venture structure, allowing landowners to contribute their properties into a newly formed development company in exchange for equity stakes. This model minimizes initial capital needs for investors while aligning interests among stakeholders, a strategy increasingly adopted in large-scale real estate ventures within emerging markets.
While specific investment figures have yet to be disclosed, market expectations anticipate a multi-billion-euro phased development, reflecting Eagle Hills’ history with similar projects. The firm’s international portfolio features extensive mixed-use developments that integrate residential, hospitality, retail, and marina components, often realized in collaboration with governmental or local entities.
Montenegro’s attractiveness as an investment destination is twofold: it aims to establish itself as a high-end tourism and real estate hub, bolstered by favorable corporate tax rates and ongoing EU accession talks. Furthermore, there exists a notable discrepancy between the demand for premium coastal properties and the availability of large developable plots—an issue that projects in Ulcinj could help resolve.
The timing of this initiative coincides with a transitional phase in Montenegro’s property market. With price increases in established areas like Budva slowing or even reversing in some sectors, investors are increasingly seeking new development zones with long-term growth potential. Ulcinj’s scale and relatively low starting prices align well with this trend.
Nevertheless, significant execution risks persist. Large coastal developments in Montenegro are subject to intricate regulatory frameworks, including spatial planning approvals and environmental assessments. Ensuring alignment among local stakeholders—especially in regions characterized by fragmented land ownership—will be essential for project success.
Alabbar’s strategy appears to acknowledge these complexities. By advocating for partnership-based models and focusing on long-term development rather than speculative building, the approach aims to alleviate some structural obstacles that have hindered previous large-scale initiatives in the area.
This announcement reflects a broader trend observed in emerging real estate markets. As prime locations mature and price growth stabilizes, capital tends to migrate toward new areas where scale, planning, and infrastructure can enable the next phase of development. In Montenegro’s context, this evolution may increasingly pivot away from Budva towards the less developed southern coastline.
If successfully implemented, the Štoj and Velika Plaža projects would mark one of the most substantial capital investments into Montenegro’s real estate sector in recent years. This would have repercussions not only for tourism and property markets but also for infrastructure enhancement, job creation, and regional positioning within the Adriatic investment landscape.
