The
Secret’s Out: Europe has a New Riviera
(And
We Have a RETA-only Deal)
By Ronan McMahon
When you tire of Monaco andAntibes when Saint-Tropez wearies you...
When Capri is too crowded and Portofino is packed...
Where’s a billionaire to dock their superyacht?
The world’s most beautiful place of course
A new Riviera has emerged in Europe. And we have a RETA-only deal there I believe will see us with gains of €201,643 five years after delivery
That’s what Time Out called the Bay of Kotor in Montenegro
Tatler called it a “new Monte Carlo.” French weekly magazine La Parisien has described it as “an Eldorado for the ultra-rich and a new Monaco.”
It’s an utterly breathtaking part of the world.The love child of Norway and Venice...where theAlps meet a Mediterranean vacation...
In this report I explain how a tiny mountainous country the size of Connecticut has emerged as Europe’s newest Riviera and why the ultra-rich are making it their oasis.
Why does this matter to you?
Because this month we have our first-ever RETA-only deal in Montenegro at the heart of the Bay of Kotor. It’s a deal I believe will see you with gains of €201,643 five years after delivery It’s taken years to get this for us Developable land is so incredibly scarce here and demand is exploding.
This is my first major macro recommendation in Europe since I pinpointed our incredible opportunities in Lagos on Portugal’sAlgarve.And I expect the same sort of stellar gains.
Over the last few years you may have picked up on what’s happening...
There have been various reports about the massive transformation occurring along the coast of Montenegro and in particular in the Bay of Kotor. Here’s a typical headline about Montenegro...this one from Architectural Digest.
First important thing to know....
The Bay of Kotor is right next to Croatia
Three decades ago Croatia was emerging from war and communism.Today it’s a tourism powerhouse renowned for historic towns and a stunning coastline.An estimated 50 million tourists are expected in 2024, with forecasts estimating nearly 60 million tourists in 2029. In the past 20 years the country’s seen €5.5 billion in foreign investment in real estate. Prices have soared and coastal property is at a premium
Next stop for this Path of Progress? Just over the border into Montenegro.
In fact, there is a massive highway planned the length of both countries, right down intoAlbania and on to Greece. Marked in yellow here:
The Adriatic-Ionian Highway is a planned route down one side of the Adriatic Sea, right through Montenegro.
But the highway doesn’t even matter.
Because already the Bay of Kotor is about an hour-and-a-half from Dubrovnik, Croatia’s hottest tourist town, which has seen nearly 600,000 arrivals since the start of 2024. Boat trips and day trips are popular going both ways It's the same coast just a different country
There’s one group of people I’m sure have already heard all about Montenegro...
If you have a net worth of over $30 million you’re classed as ultra-high net worth (UHNW) and Montenegro has probably been on your radar for a few years.
“Monaco may not be what it used to be but Montenegro is ” – Robb Report
“As HNW Individuals Seek Options,AnAdriatic Resort Prepares” – Wealth
Briefing.
A-listers, oligarchs, and Gulf state billionaires are flocking here to berth their superyachts.The stores stock high-end luxury brands like Dior, Rolex, Burberry, Balenciaga.And luxury penthouses sell for millions.The Saudi royal family has relocated its golden fleet of mega-yachts here from Monaco on a 30-year lease.
Another headline, this one from The Times newspaper of England:
What’s happening in little Montenegro is the story of this huge Path of Progress and also the grand vision of mega-wealthy investors
It’s also a testament to the drive of little Montenegro to carve out a place for itself among the world’s rich and glamorous micro-states. Like other small states such as Monaco and Malta this tiny country with few natural resources has been smart and strategic.
Montenegro is one of the world’s newest countries and it has been harnessing its natural beauty, culture and cuisine and attractive tax rates to put it on the map for foreigners, just the way Monaco and Malta did.
Speaking to Time magazine way back in 2008 Montenegro’s Prime Minister put it this way: “We are a small country. We have no space for mass tourism. We want to use every inch of territory that we have to attract the highest-paying guests We have the frame; now we want to fill it with a beautiful picture ”
And fill it with a beautiful picture Montenegro has...
Check out this video for one of the landmark developments in the Bay of Kotor, called Porto Montenegro:
On those mega-wealthy investors...
Tired of overcrowded and out-of-date marinas around the Mediterranean, billionaire gold-magnate Peter Munk bought an old Soviet submarine base in 2007 and began creating a luxury oasis for himself and his fellow billionaires.
His co-investors included two Rothschilds and a Russian billionaire. Now, 17 years and $650 million or so later, Porto Montenegro is the hottest spot on the Mediterranean circuit Munk’s own super-yacht, the Golden Eagle, was 42 meters long when it was there and required a year-round staff of five (Munk passed away in 2018 )Though, it’s nowhere near the largest luxury yacht to be berthed in Porto Montenegro, which is future-proofing to cater to the ever-increasing mega-yachts of the world’s wealthiest...(more on the world of super yachts in a moment.)
Kotor is one of three bays making up a huge natural harbor. Once home to Venetian merchants, imperial Austrian navies and Soviet submarine bases, it now hosts some of the most luxurious marinas in the world, Porto Montenegro is one.
Now the “ordinary rich” are discovering stunning Montenegro too…
“Ordinary rich” is a term I use for professionals who earn well...not super rich, but well off.They can often move around to some degree, too. Most aren’t in the market for multi-million-dollar mansions or 5-star resort residences. But they want luxury and exceptional resort-style amenities… and they can pay for it.
I’m talking about entrepreneurs, small-business owners computer scientists, bankers, lawyers, doctors…I count myself as among “the ordinary rich.” I don’t do my global scouting in a private jet nor do I typically pay thousands of dollars a night for hotel stays.
As the ordinary rich discover Montenegro, it’s creating an incredible opportunity
With them comes insatiable demand for high-quality real estate with outstanding amenities.Think uninterrupted views, pools, gym...all the resort-style amenities we expect when we go on vacation or workcation.
And in Montenegro that’s extremely scarce...
Permitting is a factor, Kotor is an UNESCO-heritage site. Geography is another barrier...building where mountains meet the sea is never easy and around the bays the mountains sweep right down to historic towns on the water’s edge.
And the big players in the market have simply been focused on the highend building communities where luxury apartments can sell for in excess of $1,000 a square foot.
Montenegro is a brand-new country determined to prosper. It only became independent in 2006.And since then its coastline has been high on my short list in Europe for a RETA-only deal.
Even before I founded RETA in 2008 I had traced the development of Croatia’s coast
I knew it was rolling into Montenegro.That’s why my team and I have put boots on the ground there a dozen or so times.
Now, finally, the years of scouting and research are about to pay off. We have the perfect RETA deal.The location is ideal. the amenities are incredible the price is unbelievable
As I say, I expect gains of €201,643 five years after delivery. I’ll open this opportunity to you and your fellow RETA members on July 24.
But here in your July issue of RETA I want to focus on introducing you to this new European Riviera and explain how it became such a hotspot of high-end luxury
So like I say, the first thing to understand is that Path of Progress from neighboring Croatia where millions of people have been coming to enjoy the stunning coastline and historic towns.Year after year they’re shattering arrival records and driving up real estate prices.
The second thing to understand about the Bay of Kotor is that this place is breathtakingly beautiful:
Romantic poet Lord Byron hailed this coast as “the most beautiful merging of land and sea.” Plenty of other poets, painters, European royalty, scientists, soldiers and sailors have fallen under the spell of the Bay of Kotor the closest part of Montenegro to Croatia and the epicenter of opportunity in the country right now.
It is in fact three bays, a serpentine fjord-like stretch of crystal-clear water over which stand sentinelAlp-like mountains, their dark, ancient faces softened by the green of the forests.
I’m not a yachtie, but I can appreciate why someone would yearn to cruise into this huge natural harbor. “As you enter the bay from the open sea you feel like you are setting foot in a temple, worthy of no other vault than the sky itself,” says one guide book from the 1950s
The only thing that’s changed in 70 years is how much more glamorous it’s become.
The lifestyle is enviable and foreigners will all tell you how safe and relaxed they feel. Little Montenegro joined NATO in 2017 and is in talks to join the European Union. A mammoth Path of Progress has rolled down the coast from Croatia and little Montenegro has positioned itself to become “a Monaco of the Adriatic” luring the world’s ultra-rich.
At certain times of the year snow will cap the mountains, yet on the seafront below roses will bloom.
Sun and salt-scented sea air soothe the senses.You can surround yourself with citrus trees and the lush greenery of olives, laurels, rosemary, boxwood oleanders and palm-trees
Yet you could be amid the lakes and brooding beauty of theAlps.
“The bay is ringed with Renaissance towns, as if bits of Venice have snapped off and drifted down theAdriatic Sea to lodge on the flanks of these sunny shores,” according to oneAustralian travel writer.
It is an especially magical place by moonlight when the silvery sea laps gently at the jetties of beautiful ocher-hued mansions and age-old church towers are reflected in the water.
Perast is one of the historic towns around the bays that showcase Montenegro’s Venetian heritage.
The most famous town is Kotor but you’ll find plenty more to explore.
Here, on the Bay of Kotor we have scarcity and soaring demand in one of the world’s most beautiful places.
Aplace that’s arrived as a hotspot of the rich and powerful. Where they go to escape the crowds.
Does this sound familiar?
It’s a pattern we’ve seen play out in Cabo and in Guanacaste, Costa Rica In both places the real estate market has been largely focused on catering to the very, very wealthy. Just like around the Bay of Kotor the big-name brands of high-end resorts are creating residences priced in the millions of dollars.Think Hyatt, Ritz-Carlton, and One&Only.All-inclusive 5-star spots charge a fortune for a night.And for the ordinary rich (among which I count myself as I say) there’s very little choice.
By identifying the best developers, and doing deals on the right kind of bestin-class, amenity-rich real estate to appeal to that ordinary rich market RETA members have done phenomenally well across our beat where these trends are playing out. In Cabo for example we’ve seen uplifts on our deals of $250,000...$388,844 and more.And we own in the crème-de-la-crème of communities with outstanding amenities.
The last time I was this excited about an opportunity in Europe it was in Lagos Portugal, another breathtakingly beautiful and historic part of Europe There we were also buying ahead of a Path of Progress. We focused on best-in-class real estate rich in amenities and RETA members have done extremely well as a result with uplifts like $160,000 and $275,000....and gross rental yields of 8.5% to 13.5% reported.
We’re set to do it again, only this time on a European Riviera
Super yachts from Portofino to Monaco, with the Bay of Kotor in the middle.
What Makes a Riviera?
How did a strip of sun-drenched coast in France become one of the world’s most famed retreats of the rich...a place where you can pay $3,000 a square foot for real estate...and more...$5,000 and up and up...
Today the French Riviera, or Côte d'Azur, is synonymous with luxury, glamor, and the epitome of a fashionable lifestyle This is where you’ll find Nice, Cannes, and France’s “Bay of Billionaires” It’s home to 163 nationalities and every sort of super-yacht you can imagine. Nice is the fourth busiest private jet destination in the world.
Yet, this now-famed coastline, stretching from Saint-Tropez to Menton at the Italian border was an obscure and sleepy region until the 19th century. Its rocky terrain and inaccessibility made it undesirable for development its inhabitants were mostly humble fishermen
In short, it was a backwater.And a poor one at that.
Things changed with the British aristocracy.After the wars with Napoleon they fanned out in Europe on their “GrandTour.”They stayed on this stretch of French coast for health reasons, making the most of the mild climate and sunshine when winters back home were too dreary
The French and Italian Rivieras...a sweep of coastline that’s world famous as the retreat of the rich and famous.
These wealthy Brits were the original snowbirds, wintering in the South of France turning this hard-to-reach place into an exclusive enclave. Here
these wealthy scions of great families could let their hair down unobserved. They were soon joined by nobility from across Europe in what became a winter playground for the continent’s royalty.
The arrival of the train in the 1860s opened up the coast, bringing more of Europe’s wealthy and their hangers on Gambling became a big draw, with lavish casinos catering to the crowds
With the end of World War I theAmericans came in bigger numbers. Europe was still recovering from the war and the dollar was strong.Artists and writers poured onto the Riviera...Fitzgerald, Wharton, Hemingway...This was the era of “the BlueTrain” an all first-class sleeper train bringing wealthy passengers down from Calais
It was theAmericans who reversed the seasonal pattern, making the summer the high season.The combination of sunbathing and warm-water swimming came from Florida and high society now flocked to the Riviera in the warmest months of the year instead of the winter.
Old harbor at Cannes on the French Riviera. It’s not easy for historic marinas to accommodate today’s super-yachts. As the boats get bigger and more luxurious their owners look for places to moor them. (A modest sailboat is listed on Airbnb here for €225 a night.)
The golden age continued post-World War II, as the Riviera became the playground of the "Jet Set."The invention of the jet airplane made travel easier and quicker, bringing a new wave of celebrities and billionaires. Hollywood stars such as Brigitte Bardot, who settled in Saint-Tropez, and Grace Kelly, who married Prince Rainier III of Monaco, made the Riviera their glamorous stage
The Cannes Film Festival, established in 1946, further elevated the Riviera’s international status. Each May, the world's most famous actors, directors, and producers flock to Cannes, turning it into a global hub of cinema and high fashion.
The age of mass travel brought major changes to the Riviera Ahuge wave of construction and urbanisation took hold Highways opened up the coast further.
As far back as the 1970s critics were already complaining that the Riviera had lost its soul and its charms.Today the coast is truly under pressure. Last year 14 million people passed through Nice airport.That doesn’t account for overland visitors, nor people arriving by yacht or private jet. That’s 14 times the number of annual visitors in the 1960s
Today, the French Riviera remains a place of luxury and prestige. Megayachts anchor in its harbors, while luxury boutiques, Michelin-starred restaurants, and high-end resorts cater to the wealthy.The Monaco Grand Prix, held annually since 1929, is one of the most prestigious automobile races, attracting celebrities and the global elite.
And real estate on the French Riviera is among the most expensive in the world.Towns like Cap Ferrat,Antibes, and Èze are dotted with extravagant villas that boast stunning sea views and private beaches.
But this coast is not the preserve of the ultra-rich any longer. Much of what made the French Riviera so stylish and special is buried in concrete. Overbuilt and overcrowded...a place where once stylish resorts live on memories of their glorious past
And many of the global elite and wealthy that flocked to its shores are looking elsewhere...
They are sailing their super-yachts around the boot of Italy to the natural harbors of theAdriatic.
The light is still special, the luxury real, but Monaco and much of the French Riviera is now a busy, built-up part of the world where real estate prices are among the highest anywhere on the planet.
The same is true of the Italian Riviera, right next door...
Stretching along the Ligurian Sea in northwestern Italy, the Italian Riviera includes famous destinations like Portofino and the CinqueTerre. It is known for its colorful seaside villages, stunning cliffs, and delicious cuisine.
Portofino remains a favorite of celebrities, synonymous with luxury. Steven Spielberg and Gwyneth Paltrow have regularly visited for family getaways. Rihanna, Madonna, Denzel Washington, and Bruce Springsteen have all been spotted there in recent years Kourtney Kardashian got married in a villa in Portofino.
Today, the small Marina di Portofino is one of the most exclusive in the world…
Set in a natural promontory formed by the inlet of Portofino Bay, it has only 14 berths for superyachts and two for mega-yachts.The average berthing price is €2,398 per day, making it one of the most expensive in Europe And that’s if you can get a berth They have to be booked months or even years in advance.
It’s a similar tale with real estate in Portofino…
only 14
for super-yachts.
Supply is limited by geography, and Portofino has long been a place where the wealthy wanted to own. Italian fashion designers GiorgioArmani, Domenico Dolce and Stefano Gabbana are among the famous names who reportedly have villas in this small town.
This means prices can be astronomical…
Plus, Portofino is no longer the hidden enclave it once was. In summer, it teems with vacationers.
The ultra-wealthy are getting disillusioned by the lack of available, modern real estate and marina berths all across the Mediterranean and its rivieras.
The rivieras are becoming more crowded and expensive, their small historic marinas can’t be expanded to suit the growing demand for superyacht berths, or the growing size of the superyachts themselves
That’s why many ultra-wealthy are now looking to Europe’s new “Hidden Riviera…”
The Next Croatia
My discovery of Europe’s new Riviera began in the fall of 1997 when the war was very fresh
Still a college student I was looking for adventure. I found a flight from Cork, Ireland toTrieste in the north of Italy.The plan was simple...
Rent a car and drive the coast down through Slovenia and Croatia.
I remember seeing bullet holes, fresh from the conflict Croatia had fought its way out of the oldYugoslavia from 1991 to 1995
But tourists were returning already. My friend and I weren’t alone, we found a mix of backpackers and well-to-do yachties as we wound our way around the stunning bays of Istria and Dalmatia.
Dubrovnik is only an hour and a bit drive from Montenegro and a major center of Croatia’s luxury tourism. Boat trips down the coast to explore the old town of Kotor and its majestic fjord-like harbor are popular. With the rich in the vanguard, tourism and development are moving south and Montenegro is “the next Croatia.”
I could sense potential even then, but it wasn’t until 2005 when I was a fullfledged real estate investor that I returned to Croatia.The market was starting to kick Croatia had begun to rebrand itself as a premier tourist destination. Significant investment was being made in restoring historical sites, upgrading facilities, and improving infrastructure to attract international tourists.
High-end resorts, boutique hotels, and luxury villas were popping up. Notable examples include the Hotel Bellevue in Dubrovnik, the Sun Gardens Dubrovnik resort, and luxury properties on the islands of Hvar and Brač
Luxury marinas, such asACI Marina Split and Marina Frapa were attracting wealthy yacht owners from around the world.
At the same time, I saw how new coastal protection measures were putting the brakes on development Scarcity was biting hard as demand was exploding Real estate prices followed suit
With a growing tourism market focused on the affluent, Croatia was also working toward joining the European Union, which it did in 2013.The ordinary rich began piling in...
As I told you earlier, an estimated 50 million tourists are expected in Croatia in 2024, with forecasts estimating nearly 60 million tourists in 2029 In the past 20 years the country’s seen €5 5 billion in foreign investment in real estate. Prices have soared and coastal property is at a premium.
Back in 2005 when I scouted you could buy a sea-view apartment around Dubrovnik for under $200,000.Today you’ll need $500,000 or more.
This is Croatia. The coastline of the Adriatic Sea stretches for hundreds of miles into Montenegro where the natural beauty continues. The Bay of Kotor is right in line of the Path of Progress and a new oasis for the super rich.
Dubrovnik is just across the border from the Bay of Kotor. It’s the most luxurious corner of Croatia’s coast and nothing but an imaginary line and a few mountains separates it from Montenegro.
So, when I arrived in Montenegro on my first scouting trip there I saw the trip as a continuation of my scouting...
Montenegro's coastal towns boast Dalmatian stone and ocher hues reminiscent of Croatia.You have the same vibrant turquoise waters.The local cuisine embodies the essence of the Mediterranean diet...
Only a few things were different
For a start, our perfect timing!
Because in Montenegro we’re still ahead of the Path of Progress. Sure, you could have bought in Montenegro in 2006...and you would have bought all the uncertainty...all the risk.
What way things would go?
Just as if you bought in Croatia in 2000
Or for that matter in a whole bunch of other places on our beat at the very beginning of their multi-decade upswing.
I don’t know about you, but I like a pretty sure thing. Give me proof of concept Let the huge investment start pouring in
I like to see the snowball gathering speed down that mountain then it’s about finding the right people to deal with and the right deal to do...
It's about applying our RETA formula!
Europe’s New Riviera: Tailor-Made for the Rich
With a population of just 600,000, Montenegro is a small place with a big vision Serious money is flowing into the country, betting big on its future as a “new Monaco.”
Montenegro voted for independence in 2006, until then its fortunes had been bound up with those of Serbia to the north.
It joined NATO in 2017 and is widely expected to be welcomed into the EU, with 2030 being the latest estimate
But you know, Montenegro’s been doing just fine without being in the European Union...
It’s been reaping the benefits of huge grants without the hassle and bureaucracy that goes with full membership. It’s been playing China for large investments in infrastructure, too
Time Out called the Bay of Kotor the most beautiful place in the world. A lot of people agree. If I were only going on looks it might just be our best RETA deal ever...
Montenegro is outside of the Schengen zone, which is attractive to a lot of high-earning remote workers who want to be in Europe and need a place to spend time before bouncing back into the bloc.
Although the country has officially turned its back on Russia and its allies if you have a quiet word with a contact on the ground you’ll discover there is
still plenty of Russian money there.
Don’t confuse this though...
I see all of this as a strong signal of how Montenegro is successfully plying a route to international safe haven
The best marina for superyachts in the world in 2023, Porto Montenegro. As voted for by 15,000 captains and crews of super yachts. And our opportunity is just 20 minutes away, so dining here and enjoying the seafront is easy
In Montenegro you have well-heeled UkrainiansAND Russians escaping the war Turks escaping volatile politics back home, plenty of western Europeans escaping bad politics, bad weather and bad taxes...
You have wealthyArabs,Australians, and a rapidly increasing number of Americans and Canadians.You’ll see Chinese shopping the designer stores, CentralAsians sipping espresso at quayside cafés...
For many years when scouting for real estate deals I’ve paid especially close attention to what I call internationalized places
These are inherently desirable destinations, places people want to be in good times and bad. Places to escape for vacation or to just escape full
stop.
Places that are easy to get to and from…
You have great weather…often year-round.Abig international mix of people, lots of fun things to do, good food most I’ve come across are beach or coastal destinations, too
Montenegro is ticking a lot of the boxes...
Apull factor is that residents of Montenegro benefit from one of the most favourable tax systems in Europe, with personal, corporate and capital gains taxation rates of 9% - 15%. Inheritance tax is zero-rated, with free transfer of assets to immediate family members.
But as I’ve been saying, the big players in development here are focused on the high-end market Much of the money flowing into Montenegro is going into luxury developments...
We’ve seen Porto Montenegro, which is home to the 5-star Regent Hotel starting at around $400 a night. “We don't like being compared to Monaco.” So the general manager of the Regent told Architectural Digest. "In my
opinion, Monaco has lost its soul—there's no real atmosphere there anymore. But in Montenegro, we have natural beauty, incredible food and wine that are both locally grown, and friendly people. We don't need this country to be a tax haven to attract visitors; they will come without that."
Tiny Monaco used attractive tax policies to lure the world’s wealthy And it’s not surprising that people talk about Montenegro as “the new Monaco.”
Recently a third phase at Porto Montenegro was unveiled, SynchroYards. Due for completion in 2026, this is set to be the centrepiece of a futuristic marina, complete with a beach club, a luxury hotel, performance and events spaces, restaurants and high-end stores. Prices will start at €1 million.
Porto Novi is another major luxury marina development, close to the historic town of Herceg Novi. Its anchor tenant is the first One&Only resort in Europe where a night costs from $900 to over $6,000.To buy real estate in Porto Novi you’re looking at prices from $700,000 up
Porto Novi, home to the first One&Only resort in Europe and a world-class marina. Prices for apartments here start at well over €600,000. (It’s about 40 minutes from our upcoming opportunity and a world away from our RETA-only price!)
As part of the expansive Luštica Bay development,The Chedi Luštica Bay is one of the largest and most luxurious hotels in the region The resort is within a development that includes a marina and residences. My scouts were there recently and tell me the beach club was well under way, as was the country’s first golf courses.
In no particular order and by no means exhaustive here’s a list of more luxury around the bay:
The Hyatt Regency Kotor Bay is a part of Hyatt's expansion into the Adriatic region. It opened last year and includes the Vrmac Health & Wellbeing Retreat De’MAR offering wellness, rehabilitation, de-stressing and aesthetic treatments and retreats.
Nikki Beach Montenegro is part of the globally recognized Nikki Beach brand, known for its luxury beach clubs and resorts.Aroom here will set you back anything from $500 to over $1,000 a night during summer.
Encircled by sea and sky, with far-reaching views and wild sceneryThe Mamula Island Hotel, has 32 rooms, a spa, a beach, three pools, three restaurants and four bars. It’s in a 19th-century fort.
The Mamula Island Hotel...an old fortress in the bay, is one of the many luxury boutique experiences in restored forts, palaces or mansions around the Bay of Kotor
Situated directly on the beach in Dobrota, Huma Kotor Bay Hotel & Villas offers a mix of rooms, suites, and villas, many with private pools and terraces overlooking the bay.The hotel features a beach club, fine dining restaurant, and a spa.
Located in the historic town of Perast, the luxurious Iberostar Heritage Grand Perast hotel occupies a former palace and offers stunning views of the Bay of Kotor.The hotel features elegantly appointed rooms, a spa, an outdoor pool, and fine dining options.
The Lazure Hotel & Marina in Herceg Novi is set in a beautifully restored 18th-century building.The resort offers luxurious accommodations, a marina, a spa, and several dining options, including a beach bar and restaurant.
Afive-star boutique hotel located on the waterfront in the village of Dobrota Forza Mare Hotel has themed luxury suites, a private beach, a fine dining restaurant, and a wellness center.
On the picturesque Luštica Peninsula, word is a Ritz-Carlton Montenegro is due to open this year.
The Westin is planning to open a new property in Montenegro as is Kempinski, a renowned luxury hotel brand, further enriching the region's upscale accommodation options.
You get the idea...
My scout Eoin being shown the golf course under construction at Luštica Bay. Gary Player designed, it will be an 18-hole, par-72 championship golf course with incredible sea views.
Our Opportunity
This will sound strange....
But the trends converging to push the market around the Bay of Kotor and down the coast in Montenegro are the same trends I saw converge in Cabo
in 2014 and 2015.And these are the same as those trends we’ve seen playing out in northwest Costa Rica, too.
I’ll use Cabo to explain as I spend a lot of time there...
Cabo is an inherently desirable place, with great weather year-round, beautiful beaches, excellent golf, boating, and world-class sports fishing It has enduring universal appeal.
We spotted the gap in the market in Cabo for the kind of best-in-class communities the ordinary rich want, and we’ve seen uplifts of $388,844 and more as a result of doing the right deals there.
Cabo had long been a playground of Hollywood and the ultra-rich. But around 2014, a number of factors created an enormous opportunity for us
First, a vast amount of investment flowed into new infrastructure, particularly the airport.Throughout the mid- and late 2010s, it became easier and cheaper to get to Cabo, with more routes added to cities right across the U.S. and Canada.
As Cabo became more accessible, what I call the “ordinary rich” began coming in greater numbers Remember, these are folks like me and you doctors, lawyers, executives, self-made entrepreneurs, work-fromanywhere professionals…people with money, just not ultra-wealthy.
Money wasn’t just pouring into infrastructure, it was also going into new ultra-high-end luxury resorts and communities. Major brands like Nobu, Ritz-Carlton, Four Seasons, St. Regis and Discovery Land Co. were pouring billions into new golf courses, hotels and residential communities.
These resorts and communities were aimed at the ultra-rich, with room rates of thousands of dollars per night, and condos and luxury homes priced in the millions. It seemed that every major new development was targeting that extreme upper-end of the market.
But in this rush to control the ultra-high-end segment, an important group was neglected…the ordinary rich.
These buyers and renters aren’t in the market for multi-million-dollar mansions, but they still want luxury, resort-style amenities, and a perfect location…and they’re willing to pay to get it.Yet, there was a limited supply of best-in-class real estate to cater to these folks.
At RETA, we spotted this gap in the market and got to work finding the perfect real estate to appeal to these buyers and renters…condos and homes with high-end finishes and world-class, resort-style amenities in best-in-class communities
The kind of places where I like to live and stay…where I imagine you enjoy living and staying too…
With this strategy, we’ve had hit after hit after hit in Cabo.To give you a brief sample
$388,844 More—Our first RETA deal in Cabo was in 2015 in the 5-star Quivira resort. Our RETA-only price on a two-bed, two-bath ocean-view condo in the best-in-class Copala community was $336,156. Like I say, I bought one alongside RETA members. In 2023, an identical condo to mine two floors above me listed for $725,000 an uplift of $388,844.
Uplift of $250,000—InAugust 2021, RETA members could get a penthouse in a community called Cabo Costa for $249,000. I got one.A penthouse in Cabo Costa in 2024 lists for $499,000—that’s $250,000 more
Boost of $421,778—Also in Quivira, a RETA member bought a villa in Mavila for $428,222 in June 2018.Avilla there was on the market in 2023 for $850,000.
$602,885 More In 2017, a RETA member bought a luxury villa in Copala, in the Quivira master-planned community, for $385,115. In 2023 the same Copala villa listed for $988,000—that’s an enormous uplift of $602,885
With these Cabo deals, we’ve seen double-your-money capital appreciation and in some cases even more Plus, with long-term rental rates on condos in communities such as Copala soaring, we’ve also gotten double-digital gross rental yields.
All because we spotted that gap in the market…that neglected segment of affluent buyers and renters.
And that’s what we’ve done with our upcoming deal in Montenegro
It’s taken years to get the right deal. But I knew it would be worth the scouting, the research, the expense and the patient negotiation...
We have stunning two-bed condos from a RETA-only €348,356. I expect these will be worth €550,000 five years after delivery.
That’s a gain of €201,643.
To put that gain in dollars at today’s rate it’s $219,123 just five years after delivery.
Rent your two-bed condo short term and a gross yield of around 16% seems reasonable to me.That’s what the developer’s projections say based on an average annual occupancy of 48% with nightly rates from €250 to €398 depending on the season This makes sense to me given the incredible location and outstanding amenities You’d need to build up occupancy, reviews and repeat guests, of course
We also have stylish one-bed pied-à-terre apartments with sea views from a crazy €193,013. I expect these will be worth €304,735 five years after delivery.
That’s a gain of €111,722.
And finally, we have two extremely large and luxurious three-bed condos at RETA-only prices of €636,258 and €667,652.
All the condos available to us are RETA-grade deals...off-market, first access, RETA-only deals...
Our location is superb. In easy reach of Kotor old town, the swanky marinas of Porto Montenegro, Porto Novi...the historic towns around the bay...and all the incredible leisure activities you or your renters could want
Our price is RETA-only, off-market. Our amenities are outstanding, and our community is to be designed in the style of aTuscan palace.
All our RETA condos lend themselves to renting longer term too, monthly. Our condos are ideal for catering to the influx of remote working professionals, retirees, and slow-traveling expats coming to Montenegro. There’s nothing like our community for them Their choice is largely confined to high-priced luxury condos or dated apartments in old pre-boom buildings with zero amenities.Aprivate, tranquil oasis centrally located to all the attractions, the airport, marinas, Kotor old town and replete with resortstyle amenities is perfect for them.
And for you when you spend time there...
Oh, and we have exclusive developer financing and an attractive payment plan with our deal.
Just as I finished this report I got more details of the developer’s future plans for our community.
Within 10 weeks of our RETAlaunch the developer’s planning a 15% increase on our RETApricing.
Within a year of our RETAlaunch it’s a 30% increase on our RETA prices
All told over the build period the developer plans a 70% increase on our RETApricing
This is really underlining for me how conservative my predictions are. Remember, I’m predicting the two-bed condos we can own for a RETA-only €348,356 will be worth €550,000 five years after delivery.
But looking at the developer’s planned price increases, that could be closer to €600,000 upon delivery... €592,205 according to the developer’s planned price increases
This deal is really stacking up as a no brainer.
The Bay of Kotor, the perfect base in Europe and with the right deal a chance to lock in huge gains and double-digit gross yields.
The British writer Rudyard Kipling is supposed to have said: "There are empires and there are countries, but there is only one Montenegro."
There’s certainly only one RETA deal on the table for us there
And what a place to have it!
Stay tuned.
I’ll bring you all the details of our deal this Saturday, July 20, at 1 p.m. ET.
That’s when I will send you my deal briefing.
Then, on Wednesday, July 24 I’ll open our deal.
Until then...the absolute best thing you can do is make sure you know how to act on a RETA deal by talking to your RETA concierge.
Schedule a call with your
Schedule a call with your RETA RETA concierge today. concierge today.
The Rise of the Super Yacht and the Problems of Where to Put Them
Once upon a time, only very rich people could own a sail boat
Then came the war.The big one with the Nazis and Japanese.The country mobilized to manufacture...
And afterward,America boomed. In the late 1940s factories that had made bombs and tanks began churning outTVs, fridges and cars.
More people had disposable income and they wanted to spend it
Airplanes got bigger, air travel cheaper Owning a car wasn’t a rare luxury but an essential.Across the world the age of modern tourism began in earnest.Travel opened up to the masses through the 1960s and 1970s.
And along with other big changes marinas went mainstream.
The Black Pearl, a 350-foot yacht moored in Porto Montenegro. The market for super yachts is booming but building boats for billionaires is a lot easier than building the marinas to accommodate them.
Before the 1960s a marina if you could find one was usually just a place you parked a boat. Services were basic.And recreational boats were expensive.
With the discovery of new materials like fibreglass and new manufacturing processes the cost of recreational boats plummeted
The ordinary rich could now own a sailboat, yachts were no longer the preserve of the ultra-wealthy.
Other things were happening to drive this market for recreational boating...
As tourists poured onto the world’s sunny coasts places like Florida, Spain, France...many small ports were converted into recreational marinas.
And new and improved modes of transport were leaving some ports under-used or vacant.This was the age of the airplane. Passenger ships were passing into history
But converting commercial harbors and fishing ports couldn’t alone serve the booming market.Yachts are more delicate than hardy fishing tubs, and require different mooring conditions.
And the need of yacht-owners are different from the sailors of commercial vessels.Yacht-owners want amenities and services yachts spend most of their time moored
So was born the concept of the “marina village” developed in the Caribbean, around the U.S. and in the Mediterranean. Residential and commercial development spread out from the marinas.
And then came the “super yacht.”
There’s no universal agreement on what makes a yacht super or mega. But size, opulence and the presence of a permanent crew all play a part. Lots of people in the maritime business use the term “super yacht” for vessels at least 80 feet in length. Others say super yachts need to be a minimum of 100 feet in length.And in the U.S. you’ll hear folks refer to super-yachts as mega-yachts, while elsewhere a mega-yacht is one starting at 200 feet
The point is that yachts are getting bigger and bigger The biggest are now being called giga-yachts by some. (Here’s a good explanation of the various terms.)
The trend toward bigger luxury yachts is interesting to us as real estate investors because we understand supply and demand.
The supply of berths has always struggled to keep up with the number of yachts. Building a marina is a complicated thing.
It’s quicker and easier to build yachts than it is to build the marinas to berth them...
And now there’s the added complication of yachts getting bigger.
Billionaire berths are even harder to come by then regular berths Re-building the marinas on the French Riviera or the Greek Islands
to accommodate massive super-yachts is extremely difficult...permitting, planning, expense...
When Jeff Bezos recently tried to moor his 416-foot yacht, Koru, in Ft. Lauderdale, Florida, there was no berth big enough.
Instead he had to park in the commercial area of Port Everglades
Picture a $500-milion yacht sitting among rusty shipping containers and tugboats not what you would call arriving in style.
The first tailor-made marina for super yachts wasYacht Haven Grande in the U.S. Virgin Islands, completed in 2007 for 48 superyachts up to 350 feet in length That’s not big enough today for the world’s biggest yachts
That same year, Canadian billionaire Peter Munk was having the same problem as Bezos. Monaco, Portofino and the usual places in the Mediterranean were too busy, crowded. He wanted somewhere to moor his yacht, Golden Eagle.
So he got in his helicopter and scouted the coastline of theAdriatic Sea searching for the perfect place to build a luxury marina that catered to the world’s biggest yachts and billionaires like him.
In 2007 he did a deal on an old Soviet submarine base in the Bay of Kotor that today is ranked the world’s number one super-yacht marina as voted for by the crews and captains of super-yachts.
That’s important these big boats have permanent crews, some as many as 100.These boats and their crews need a place to call home.Aplace to buy houses, send their kids to school, get fresh groceries, attend clinics...all the stuff people do when they aren’t on the high seas.
And the market for super yachts is booming...
The world’s leading shipyards are reporting record sales Postpandemic the demand for floating homes for the rich is soaring.
Research firm Future Market Insights expects the industry’s annual revenues to more than double over the next 10 years, to $19.9 billion.
In the Bay of Kotor big groups are building for the future of the highend maritime market.
Porto Montenegro is now owned by the Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai. (Peter Munk died in 2018).
Dubai is the true birthplace of marinas of unparalleled luxury.
Then you have Porto Novi and in Luštica Bay and in a host of smaller marinas the Bay of Kotor is set to serve the wealthy boat owners of the next decades.
Here’s a short video from Porto Novi:
Everything that made this natural fjord-like harbor so important to the navies of Venice andAustria over the centuries is now being harnessed to create a new riviera
The latest trend in yacht-building is a move toward sustainability...think solar panels and sail.
I think Jeff Bezos’ Koru is the world’s largest sailing yacht. Of course, it’s apparently followed everywhere by a support vessel with a diesel engine that’s almost as big as a mega-yacht itself!
Transparency is important to us. So you should know that properties and development projects detailed here may be clients of Pangaea Limited trading as Pangea, a real estate advertising company managed by Ronan McMahon and Margaret Summerfield, whose adverts appear in International Living Publishing Ltd publications. Should you purchase a property from one of the developers or real estate brokers you read about, Pangaea Ltd. may receive an advertising and/or other fee from developers, real estate agents or property owners mentioned in these pages and International Living Publishing Ltd., along with certain marketing companies who contract directly with Pangaea Ltd., may receive a portion of that fee. Nothing in this e-mail should be considered personalized advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular situation. No communication by our employees to you should be deemed as personalized advice. Should you have any queries relating to your subscription please contact us here
Real Estate TrendAlert July 2024 Volume 10 Issue 07 InternationalLiving.com
Executive Editor: Ciaran Madden
Web Designer: Graham Stallard