Montenegro’s Ministry of Spatial Planning, Urbanism and State Property overturned the construction ban on the first phase of the Novi Novi resort on 2 November 2026, upholding an appeal by investor Carine. The ministry found that the inspection order did not establish the relevant facts precisely or explain the grounds for the prohibition, and sent the case back for a new decision. The first phase was previously valued at about 80 million euros.
The ruling cancels the urban planning and construction inspector’s order of 13 May, which prohibited construction of the five-star hotel project in Kumbor and Đenovići. It removes that specific order, but does not establish that all work at the site is lawful or that the project fully complies with planning documents.
Carine, a Podgorica-based company, is developing Novi Novi near the Portonovi luxury resort. Project documents previously presented for the complex set out a site of 72,866 square metres, or about 7.3 hectares. The planned development includes hotels, apartments, hospitality facilities and associated amenities, to be delivered in three phases.
Inspection order returns for review
The ministry concluded that the first-instance decision did not clearly identify which documents were missing or specify the irregularities that justified a construction ban. It also found a breach of administrative procedure, saying the order lacked the factual detail and reasoning needed to confirm its legality.
Issues requiring clarification include which cadastral plots were covered, whether the project documentation conforms to the urban planning and technical requirements, and what irregularities the inspection relied on. The first-instance body must establish the relevant facts more precisely and issue a new decision with an adequate explanation, according to the ministry.
The inspectorate had assessed the revised main design as inconsistent with urban planning and technical requirements issued in August 2023. Its objections concerned the height of some buildings, the intended use of planned facilities and documentation accompanying the construction notification. Inspectors found seven buildings under construction, including buildings with configurations of Po+P+6 and one of Po+P+7.
The inspectorate questioned whether the buildings’ storeys complied with the planning requirements. Carine argued that changes to the project documents and adjustments to the terrain had addressed the discrepancies identified at the site. The company said the revised main design was reviewed on 15 May 2026.
The planning rules for the T1 tourism zone, as cited in the inspection order, require hotels to account for at least 70% of the planned area for construction. The remaining 30% may be used for other permitted tourism facilities. The inspectorate questioned the balance of hotel and apartment accommodation and said the submitted documents did not adequately demonstrate compliance with those rules.
In its appeal, Carine described Novi Novi as a tourism resort with hotel and apartment facilities and said apartments did not exceed the permitted 30%. The company said the main design was changed to respond to the site’s configuration and make the buildings functional. It said one building was revised to have six above-ground floors instead of the originally planned seven, while one floor became underground because of changes to the terrain.
Carine also disputed concerns about its right to build on some of the cadastral plots. The company argued that temporary measures restricting the disposal of land did not automatically amount to a prohibition on construction work. The ministry’s decision addressed the deficiencies in the inspector’s reasoning and returned the matter for reconsideration; it did not resolve the project’s compliance with every planning requirement.
Original construction timetable not confirmed
Carine general manager Vladimir Popović previously put the value of the first phase at about 80 million euros. That phase covers approximately 20,000 square metres of land. Under the investor’s original schedule, it was due to be completed by the end of 2027, while phases two and three were planned for 2029 and 2031.
The ministry’s ruling does not say whether the original deadlines have changed because of the administrative and inspection proceedings. It also does not establish whether other valid inspection measures apply to the project or mean that Carine can automatically resume all construction work.
The decision was made under the authority of Minister Slaven Radunović. A party may challenge the second-instance ruling in the Administrative Court of Montenegro within 20 days of receiving it. The inspectorate must now reconsider the case and issue a new decision based on clarified facts and reasons.
