Luštica Development has commenced work on wastewater infrastructure as part of the next phase of its golf district near Tivat, which will include 13 villas and golf houses with a total above-ground gross floor area of nearly 3,374 square meters. This development is part of the broader €1.6 billion master plan for Luštica Bay.
This construction notice, filed on July 31, 2026, and recorded by the Ministry of Spatial Planning on August 3, indicates that while infrastructure works are underway, it does not signify the immediate start of construction on the residences themselves. The current focus is on establishing the wastewater disposal system necessary for future building activities.
Infrastructure development is a critical phase in large mixed-use projects like Luštica Bay. It includes essential services such as roads, water supply, electricity, and telecommunications, which are vital for connecting properties to municipal services. The commencement of this wastewater project was authorized with a permit issued on July 25, 2025.
The construction will take place on urban plot UP 1 in Radovići, which is part of the detailed urban plan for Golf and Donji Radovići West. The contractor responsible for this phase is North Star MNE from Herceg Novi, with oversight from Podgorica’s CAU – Centre for Architecture and Urbanism. The principal design was created by Vigoris Ecotech.
The residential phase labeled I-b2 consists of ten villas and three golf houses. The total above-ground gross developed area for this new construction is approximately 3,373.82 square meters, with a combined building footprint of about 2,626.25 square meters. The design anticipates an average of around 260 square meters of gross above-ground space per unit.
Permitted building formats include options for basement and ground floor or one upper level. Architectural elements will feature a combination of silicate render and traditional Luštica stone with tiled roofs. Approval for these designs was secured from Montenegro’s chief state architect in April 2024.
In terms of planning regulations, type-two golf villas can be either detached or attached structures containing between two to five units. This flexibility allows developers to adjust configurations based on market demand and construction costs.
Luštica Bay aims to transform from a seasonal marina resort into a fully integrated residential community over approximately 6.9 million square meters on the Luštica peninsula. The project is spearheaded by Luštica Development, which is under the control of Orascom Development Holding, while the Montenegrin government retains a 12.24 percent stake after converting state receivables into shares.
The development strategy differs from other local projects like Portonovi and Porto Montenegro by focusing on phased infrastructure investments that enhance land value as each component is completed. Since construction began in December 2013, approximately €637.4 million has been invested in Luštica Bay up through mid-2025.
As of mid-2025, the project has delivered around 450 apartments, 13 houses, seven villas, and various commercial units along with recreational facilities such as beaches and a marina boasting approximately 121 berths. More than 1,000 properties have been sold across different phases.
The introduction of golf facilities is pivotal for establishing premium property value beyond the existing marina waterfront at Marina Village. The Peaks neighborhood aims to create a distinct pricing category based on golf proximity and scenic views over the Adriatic Sea and Bay of Kotor.
Plans include an 18-hole championship course designed by Gary Player Design, anticipated to be Montenegro’s first full-scale golf course with sea views from each hole. While initial groundwork has begun on three holes, full course completion is expected by late 2028.
The overall investment in the golf district is projected at around €400 million over six years, encompassing not only the golf course but also residential developments and supporting infrastructure.
A larger golf hotel is also envisioned to enhance visitor experiences and support year-round operations beyond reliance on second-home occupancy during peak seasons.
Current marketing efforts for residences at The Peaks indicate high-value opportunities, with listings showing prices ranging from approximately €859,000 to over €1.4 million depending on unit type and location within the development.
The involvement of the Montenegrin government adds a layer of financial oversight to ensure compliance with development commitments. As wastewater management becomes increasingly critical in light of environmental concerns on the Luštica peninsula, this project represents another step toward sustainable growth in Montenegro’s coastal regions.
