The Luxury Real Estate Market on the Luštica Peninsula: 2025 Analysis
Why Luštica Has Become Montenegro’s Luxury Investment Hub
The Luštica Peninsula, a hidden gem of the Montenegrin coast that includes the charming villages of Krašići, Rose, Bigova, and the prestigious Luštica Bay complex, has undergone a remarkable transformation over the past decade.
Once a quiet, undeveloped area, Luštica has evolved into a world-class destination for luxury villas, seafront apartments, and premium real estate investments.
Today, Luštica real estate stands among the most sought-after in the Adriatic region, attracting an ever-growing number of international buyers and investors.
This 2025 analysis provides a detailed overview of current property prices, market trends, infrastructure development, and investor profiles shaping Montenegro’s high-end property market.
Luxury Property and Land Prices on Luštica in 2025
The luxury property market on Luštica continues to see strong growth.
In developments such as Luštica Bay, Porto Montenegro, Portonovi, and Dukley Gardens, prices now reach up to €12,000 per square meter, placing the area among the most expensive on the Adriatic coast.
- Luštica Bay: average villa and apartment prices range from €8,000 to €12,000/m², depending on view and location.
- Krašići: luxury seafront villas are priced at €5,000-6,000/m², while plots of land sell for €100-500/m².
- Rose: restored stone houses in exclusive areas sell for €2,000-5,000/m², and urbanized plots reach up to €250/m².
- Bigova: still in early development, land prices have already climbed to €100-150/m², with the announcement of the upcoming Bigova Bay Resort driving further interest.
For comparison, the average new-build price on Montenegro’s coast in Q2 2025 stands at €2,333/m², meaning Luštica exceeds the national average several times over.
Seafront villas now command prices over €2 million, such as a 350 m² contemporary villa in Krašići with a private pier, listed for €2.2 million.
Market Dynamics: Price Growth and Demand (2015-2025)
Over the last decade, Montenegro’s real estate market has seen consistent and impressive growth.
The average price per square meter increased from about €1,100 in 2015 to more than €2,200 in 2025, with the luxury segment on Luštica leading the way.
In the early development phase of Luštica Bay (2013-2015), units were selling for €3,000-4,000/m².
Today, premium residences reach €8,000-12,000/m², and demand still outpaces supply.
Between 2020 and 2025, prices rose by nearly 50%, fueled by record levels of foreign investment — in the first half of 2025 alone, international buyers invested €228 million in Montenegrin real estate.
Although the 2020 pandemic temporarily slowed activity, the post-COVID recovery was swift and robust, with property prices surging up to 20% annually in 2022-2023.
By 2025, the market stabilized at a high, sustainable level — confirming Montenegro’s status as one of the Adriatic’s most dynamic luxury destinations.
Infrastructure: The Foundation of Future Growth
One of the main drivers behind Luštica’s real estate boom is modern infrastructure development.
What was once an isolated peninsula is now becoming a fully connected, self-sufficient area with new roads, utilities, and digital infrastructure.
- Roads: the new “Monterose” route and reconstruction of the Klinci-Eraci road now connect Rose with Krašići and Klinci.
- Water supply: for the first time since the 1980s, Luštica is getting a complete water network and reservoirs — a major milestone for sustainable growth.
- Electricity & Fiber optics: an investment of €6.2 million modernized the power and telecom grid in Donji Grbalj and Bigova.
- Communal systems: resort developers like Bigova Bay are investing tens of millions in local infrastructure improvements.
This infrastructure renaissance positions Luštica as a self-sustaining luxury zone — a blend of natural beauty, modern comfort, and long-term investment security.
Major Projects and Key Investments
Luštica Bay (Orascom Development, Egypt)
Montenegro’s largest tourism investment, valued at over €400 million.
The project includes a marina with 170 berths, the Chedi 5* Hotel, an 18-hole golf course, and a mix of luxury villas and apartments designed in a Mediterranean style.
When completed, Luštica Bay will feature 130 villas and 520 apartments, setting a new standard for sustainable coastal living.
Bigova Bay (BBI Development, UAE)
Another €400 million strategic investment, supported by the Montenegrin government.
The project includes two hotels, villa residences, and a marina, covering over 100,000 m² of built area.
Infrastructure works are completed, and vertical construction is expected to begin soon.
Local Developments:
Beyond the mega-projects, private villas, boutique hotels, and apartment complexes are springing up across the peninsula.
Local investors are capitalizing on proximity to major resorts, while restored stone villas in Krašići and Rose remain among the most desirable on the market.
Who’s Buying Luxury Real Estate in Montenegro?
In 2025, foreign investors continue to dominate Montenegro’s luxury real estate market.
Buyers from more than 60 countries have purchased properties, with top investments coming from:
- Serbia (~€41 million)
- United States (€24 million)
- Germany (~€20.6 million)
- UAE (~€11 million)
- Russia (~€10 million)
While Russian and Ukrainian buyers once led the market, recent years have seen a strong influx from Western Europe, Turkey, the U.S., and Switzerland.
Foreign clients primarily purchase villas and seafront apartments for investment or vacation use, while domestic buyers are increasingly focused on long-term residence properties.
Montenegro’s NATO membership and steady progress toward EU accession have significantly boosted global investor confidence.
Should EU membership be achieved by 2028, analysts predict another major wave of price appreciation.
The Rise of Luxury Rentals and ROI
The luxury rental market on Luštica is flourishing.
Villas with pools command premium seasonal rates, while long-term rentals of high-quality coastal apartments range from €500 to €1,000 per month, depending on size, location, and season.
Thanks to growing demand and limited supply, Luštica is now considered one of Montenegro’s most profitable areas for real estate investment and high-end rental yields.
Luštica – The Future of Adriatic Luxury
Over the past decade, Luštica has transformed from an overlooked peninsula into a symbol of Adriatic luxury and sustainable investment.
Today, it stands as a thriving hub of premium real estate, world-class resorts, and natural Mediterranean charm.
If current growth continues, Luštica is set to become one of the most exclusive destinations on the Adriatic — blending investment potential, authentic coastal living, and the spirit of Mediterranean elegance.