SPOTLIGHT ON PROPERTY & TOURISM: Investors in upmarket SE European marinas seen reaping gains in pos

div align="center">Nearby, also in the Bay of Kotor, the small green island
Date: 09-09-2009. - By Jane Fosterof Sveti Marko is being developed into an integrated
It’s a balmy August evening andluxury resort worth 450 million euros. A Russian
you’re aboard a sailing boat, at anchor in ainvestment company, the Metropol Group ( is behind
peaceful pine-scented bay. It could be Greece orthe project, and the entire holiday village will be
Croatia, Turkey or Montenegro. Nautical tourism hasmanaged by Singapore-based Banyan Tree ( Due for
shown a rising trend – in Croatia alone, thecompletion in 2011, the complex is to combine a marina,
number of people taking sailing holidays has tripleda six-star hotel, villas and bungalows -- plus a helipad.
over the last decade. And it’s not just thatBritish-based estate agent Savill’s ( is the
charter companies expanded their fleets –development manager and exclusive global sales
more and more private individuals have bought intoagent for Sveti Marko.
yachts.According to Savill’s Daniel von Barloewen,
With a rising trend of popularity for sailing anticipated tothe kind of people interested in buying residential
resume after the global crisis, demand will grow againproperties on Sveti Marko fit the following bill:
for bigger and better and marinas that offer“Russian HNWIs (high net worth individuals)
infrastructure including water and power supply, wasteand other HNWIs (sports and media celebrities), aged
disposal and vessel repairs. Beyond the basics, an35-55, mostly new money”. He tells Business
appetite has been shown among yachting enthusiastsNews: “Over 80% of the current purchasers
-- and developers -- for marina resorts that combinein Montenegro are Russian. This is due to Russia's
mooring with residential, commercial and leisure facilities.cultural and historical affinity with Montenegro, and the
France, generally considered the most expensive andperception in Russia of Montenegro as the favoured
prestigious place to keep a boat in Europe, is home toMediterranean destination closest to Russia (the other
43% of berths in the Mediterranean but they costmain Russian "summer destinations" are France,
one-and-a-half times what they would in Greece orCyprus and Turkey). The other reason is that due to a
Croatia, and double the rates in Montenegro -- a cuelow reliance on mortgages in Russia, ordinary Russians
for luxury new marinas being planned or built in thehave circa €150-€350K in liquid funds
Balkans whose potential is beginning to emerge.available, and are keen to invest in property outside of
Montenegro, with its mountainous coastline, stunningRussia presenting good investment potential”.
beaches and pretty Venetian-era harbour towns, isPROPERTY PRICES SEEN UP 12%-17% IN 2010
home to two of the largest new marina projects in theRegarding investment prospects, von Barloewen says:
region. More than just places to tie up your boat, these“Subject to market conditions, we would
state-of-the-art marina complexes will include deluxeexpect average property prices in Montenegro to
hotels, restaurants, bars, shops and even privateincrease by circa 5.0% in 2009, and by roughly
apartments and villas.12%-17% during 2010 as major projects such as Sveti
The idea started in Port Grimaud -- near St Tropez inMarko Island and Porto Montenegro commence
France -- when architect-sailor Francois Spoerryconstruction and sales. The main point to bear in mind
decided he wanted to moor his boat directly in front ofis that the previous off-plan sales model died with the
his house. He realised his dream, designing theonslaught of the Credit Crisis. The achievable sales
world’s first marina-with-residences. That wasprices in Montenegro (as with many other countries)
back in the 1960’s with the model graduallywill depend heavily on whether local and international
spreading to Spain, and now to southeastern Europe.banks give mortgages to buyers for off-plan property
PORTO MONTENEGRO STEALS THE LIMELIGHTpurchases. As the infrastructure continues to improve
The most-talked-about venture is the 200-million-euroand mortgage finance becomes available, we expect
Porto Montenegro ( marina in Tivat, Bay of Kotor, theother nationalities to return to purchasing property in
brainchild of Canadian tycoon Peter Munk, founder ofMontenegro, such as British, Belgian, Scandinavian,
the world’s largest gold-mining corporation,German.”
Barrick Gold ( Sited on a former-Yugoslav naval base,What’s more, James Price of Knight Frank
the project will eventually comprise a 650-berth marinasays: “It’s certainly true that the
for vessels including mega-yachts; a five-star hotel,marina development at Porto Montenegro will promote
probably run by Four Seasons ( and the Teutathe quality and prices of the area around the Bay of
residential complex.Kotor, and no doubt Montenegro in general”.
British global property consultants Knight Frank ( areThe same has already proven true in neighbouring
the selling agents for Porto Montenegro, where aCroatia, home to 56 marinas, most of which are
studio is expected to go for 200,000 euros, and along-established. “The marinas in Croatia have
four-bedroom penthouse with a terrace andhad a beneficial effect on the local
plunge-pool for 1.5 million euros. Each flat comes withmarket,”says André Wilding of
the offer of leasing a berth in the marina at a 75%British-based Croatia Select (
discount.CYPRUS IS NEXT IN LINE.....
James Price of Knight Frank tells Business News:Another example of emerging marina and real estate
”People buying into Porto Montenegro will be aprojects in southeastern Europe is planned construction
mix of end-users and investors, most of the end-usersof the 250-million-euro Limassol Marina ( --
will likely have a yachting connection. Interest hasCyprus’ first luxury facility. It will include berths
already come from buyers in Scandinavia, Benelux,for 600 boats and two man-made peninsulars with a
Germany, the UK, France, Monaco, Italy and Russia;beach and luxurious sailor houses plus villas set in
we also expect Middle Eastern demand and perhapsgardens with dedicated yacht berths –
some US.” Regarding investment prospects,“so you can step from your car through one
he adds: “Montenegro’s comparativedoor and out onto your boat through the
value against other Med locations would suggest goodother.” Once planning permission is obtained,
latent capital growth.”property prices in the area will rise in the short or
SVETI MARKO ISLAND TO BECOME MARINAmedium term.
RESORT