Nammos Hotels & Resorts has partnered with Smokva Bay to develop the Nammos Resort Montenegro on the Budva Riviera, located just ten minutes from Sveti Stefan. The project will feature a total of 117 units, which includes 47 hotel suites, 61 branded residences, and nine villas, alongside various dining, retail, and wellness amenities.
This collaboration aims to leverage the Nammos brand’s international marketing capabilities; however, details regarding the funding structure and overall development budget remain undisclosed. It is anticipated that the commercial model could incorporate presales of branded residences, which may lessen equity requirements for sponsors while linking project delivery to the demand for high-end properties.
In a parallel development, Luštica Development is advancing infrastructure plans for 13 additional golf residences at Luštica Bay. The limited availability of these units suggests a strategy focused on scarcity pricing and premium density rather than mass-market construction.
The influx of such investments underscores Montenegro’s growing stature within the Adriatic luxury market. This expansion also enhances the coastal economy’s engagement with international wealth flows and second-home demand. In 2025 alone, foreign investors contributed nearly €500 million to Montenegrin real estate, accounting for almost half of total foreign direct investment and exceeding €1.5 billion since 2022.
While these figures are significant, the composition of investments is crucial. The Foreign Investors Council reports that only about 13 percent of foreign capital is directed towards productive investments, with a majority absorbed by real estate. Although property transactions stimulate construction activities and generate transaction taxes, they do not necessarily enhance export capacity or provide stable year-round employment opportunities.
In terms of residential pricing trends, new-build properties reached an average cost of €2,445 per square meter in the first quarter of 2026, with coastal areas averaging €2,575 and Podgorica at €2,395. This ongoing price escalation is beneficial for developers’ profit margins and collateral values but raises housing affordability concerns for local workers.
The introduction of anti-money-laundering regulations mandates that real estate transactions exceeding €10,000 must be processed through Montenegrin bank accounts. This measure aims to enhance transaction transparency; however, challenges in account opening for non-residents may lead to longer completion times and potentially decrease liquidity in the market.
