Luštica Bay Real Estate Guide (2025)

Luštica Bay has become one of the most talked-about destinations in Montenegro’s growing real estate scene. Set on a scenic stretch of coastline, it combines modern amenities with traditional Mediterranean architecture. But before you decide to buy, there’s a lot you should know about prices, districts, buyer perks, and rental potential.

What does a one-bedroom cost? How much can you earn from a short-term rental? Is buying here a smart long-term move?

This guide walks you through everything—from current property prices to buyer benefits and market data—to help you make a smarter decision.

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What Is Luštica Bay?

Luštica Bay is a state-of-the-art master-planned development situated on Montenegro’s scenic Adriatic coast. Spanning over 7 million square meters, it is among the most substantial private real estate projects in Southern Europe.

Developed by Orascom Development—a Swiss-based company with a strong track record in luxury waterfront communities—only about 10% of the entire area has been built so far.

Despite this, property values are already on the rise, indicating a solid interest from international buyers and local residents alike (sources).

Key aspects of Luštica Bay include careful urban planning, modern infrastructure, and a blend of residential and commercial spaces.

These elements aim to create a balanced environment suitable for both living and investment, where long-term growth is supported by thoughtful development and appealing lifestyle amenities.

Current Property Prices

Luštica Bay features a broad range of housing options across several distinct areas. Each district is designed with specific lifestyles and budgets in mind. Below is an in-depth look at what potential buyers can expect:

Centrale

• Studio Apartments: Starting at €269,000 for approximately 37 m².Objekta Real Estate

• Features: Designed for year-round living with proximity to shops, roads, and schools.

‍Marina Village

• Studio Apartments: Priced around €569,000 for 46 m².Objekta Real Estate

• Features: Waterfront location, underfloor heating, swimming pool access, and inclusion in Luštica Bay’s rental program.Objekta Real Estate

The Peaks – Botanika Collection

• Villas: Approximately €3,482,000 for a 5-bedroom villa spanning 338 m².

• Features: Exclusive selection of villas, townhouses, and apartments with meticulous design.Objekta Real Estate

Villas

• Offerings: High-end villas typically include 3–4 bedrooms, private pools, and customizable layouts.

• Advantages: Villas offer a higher degree of privacy and space along with stunning sea views, making them popular among those seeking luxury and exclusivity.

• Market Position: They command premium prices due to their design, location, and added amenities, fitting well into an upscale buyer’s portfolio.

For more information and property listings, visit Objekta Real Estate.

Buyer Incentives

Purchasing property in Montenegro, and particularly in Luštica Bay, comes with several financial and legal advantages. These incentives are designed to make the buying process more accessible, especially for international investors:

• 0% Property Transfer Tax:

For new builds purchased directly from the developer, buyers do not incur property transfer taxes. This arrangement can result in significant savings compared to purchases on the secondary market.

• Reduced Legal and Closing Fees:

With many transactions occurring directly with the developer, buyers benefit from lower legal costs and minimal or no commission fees. This streamlined process contributes to a more predictable total investment cost.

• Residency Options:

Montenegro’s residency program is accessible to property buyers without a minimum property value requirement. This benefit makes it easier for foreign nationals to obtain temporary residency, thereby facilitating longer stays or even a more permanent relocation.

These incentives not only reduce initial costs but also enhance the overall appeal of investing in this promising development.

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Rental Market Insights

For investors interested in rental income, Luštica Bay presents several opportunities, particularly in the short-term rental market, driven by seasonal tourism. Key rental data for 2024–2025 include:

• Monthly Rental Income: Up to $4,206 USD from high-demand properties.

• Average Daily Rate (ADR): Around $190 USD during peak summer periods.

• Occupancy Rates: Approximately 60.1% in the busy season (May to September).

Investors who plan to rent out their property can anticipate strong seasonal returns. Moreover, as more remote workers seek alternative living arrangements, there is potential for an expanding long-term rental market.

This dual-market opportunity—seasonal and year-round—can improve overall yield and diversify income streams.

What to Consider When Buying

If you are evaluating a purchase in Luštica Bay, consider these important points:

• Pricing Spectrum:

Properties range from entry-level studio apartments at around €109,000 to luxury villas exceeding €1 million. This diversity allows buyers to match their investment capacity with their lifestyle preferences.

• Financial Benefits:

The absence of transfer taxes on new builds, along with lower closing costs, makes Luštica Bay an affordable entry point compared to similar markets elsewhere in Europe.

• Rental Income Potential:

The robust rental market, driven by both seasonal tourism and increasing long-term rentals, is particularly attractive if you plan to generate income from your investment.

• Development Stage:

With only 10% of the planned development built to date, there is substantial future growth potential. Early investment could yield higher returns as more amenities and residential units are completed.

These factors highlight why many buyers view Luštica Bay as a practical and promising opportunity, whether for personal living or investment purposes.

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Is Luštica Bay Right for You?

Luštica Bay represents a unique blend of modern design, financial incentives, and lifestyle appeal. It stands out for its range of housing options, significant cost-saving benefits, and attractive rental market.

With extensive development plans still in progress, the current phase offers an opportunity to secure a property at a favorable price before further developments increase market demand.

If you are looking for a well-rounded real estate investment in Montenegro, consider how Luštica Bay aligns with your financial and living objectives.

Whether planning to reside full-time, use the property as a vacation retreat, or capitalize on rental income, Luštica Bay offers a balanced prospect in 2025 and beyond.

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