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How is Lustica transforming into an elite resort in Montenegro?

How is Lustica transforming into an elite resort in Montenegro?

How is Lustica transforming into an elite resort in Montenegro?
  • The beginning of a new era: how the construction of a resort will change Luštica?
  • How do the changes in Montenegro affect the future of the Lustica Peninsula?

Construction of the resort in Lustica has begun.

This autumn, information published in the "Montenegro Today" magazine reported the start of a grand project to build an elite resort on the Luštica Peninsula. As part of this project, eight hotels are planned to be constructed, a golf course will be set up, and nearly 2,500 residential complexes will be created. This information has generated significant interest among both the local population of Montenegro and Russian investors, and it has greatly increased the recognition of this small yet picturesque peninsula, most of which is still covered in pristine nature.

Where is Luštica located?

Where can one find Luštica? This peninsula is located near the city of Herceg Novi and is easily accessible via the airport in Tivat. On one side, it is washed by the waters of the Adriatic Sea, while on the other, it borders the Bay of Kotor. To this day, the territory of Luštica is governed by two local administrations — Herceg Novi and Tivat. There are no large cities here; the population mainly consists of small villages and settlements, where no more than 10,000 people may reside during the summer months, while in winter, the number of residents decreases by almost half.

Development of Lustica

The development on Luštica, especially in the coastal area, is quite dense. In the 1990s, many new villas were built in areas like Krašići and Belila, but not all of them met the construction standards.“As part of the current development plans for Luštica,” comments Mikhail Travkin, the CEO of Sinteza Crna Gora, “we are focusing on the part of the peninsula that faces the open sea.”On this side, there are the beaches of Rose, Dobrich, Janice, and Mirista, as well as the coastline of Mamula Island with its historic fortress and many picturesque spots.

Famous beaches of Luštica

“The beaches of Rose and Mirisha are indeed the most beautiful and well-known places on the peninsula,” shares Yulia Titova, the CEO of Rentsale.

  • On Rose BeachOnce, famous personalities like Khrushchev and Tito vacationed here.
  • Janice BeachIt is an organized pebble area with ideal conditions for relaxing with children, as there is a playground here.
  • My favorite beachOn Luštica, there is Plavi Horizonti, or "Blue Horizon," which is located at the hotel of the same name. It is the only beach with a completely sandy surface, surrounded by magnificent pines, and features a decent restaurant and a play area for children.

Problems and Future of Luštica

Lustica remains an almost untouched corner of nature, with a narrow road winding through olive groves."The main problems facing the peninsula are the condition of the road surface and the lack of a sewage system."“All houses receive water from tanks, as the centralized water supply system is currently not functioning,” explains Yulia Titova. Sergey Zamuruev, an investment and immigration consultant at Veza.me, comments on this situation:“For a long time, Luštica remained outside of construction projects due to its strategically important position at the entrance to the Bay of Kotor.”Thus, the peninsula stands on the brink of significant changes, and its future looks promising and bright.

Changes in Montenegro

With the end of the historical union between Montenegro and Serbia and the country's shift towards NATO integration, priority tasks have undergone radical changes. As a result, vast areas with untouched nature have become targets for commercial development.

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Almost the entire territory of Luštica requires the creation of infrastructure—water supply, electrical networks, and roadways—essentially starting from scratch.

The situation in Luštica

Currently, it is noted that comprehensive plans for the development of Lustica have been absent for a long time, and only recently have active efforts been launched to develop this peninsula. Mikhail Travkin reported that this year a master plan for urbanization was approved in Herceg Novi, which has opened new horizons for developers and investors ready to implement their ideas on this picturesque peninsula.

First projects

One of the first initiatives is the construction near Miriste beach on the Arza peninsula, where the design will be handled by the international company Tradeunique. At the same time, the Egyptian group Orascom announced its intentions for the eastern part of Lustica, while the Dutch company Limon Investments Montenegro is preparing a project for the construction of an elite golf resort in the western part of the peninsula. Currently, all these initiatives are in the early stages, and information about them is quite limited.

The ambitious Lustica Development project

In October 2010, Lustica Development AD, in which 90% of the shares are owned by the diversified holding Orascom and 10% by the Montenegrin government, presented its ambitious project covering an area of 650 hectares with a total budget of one billion euros. The plans for Lustica include:

  • Construction of eight hotels;
  • 1600 residential apartments;
  • 750 standalone villas;
  • Creation of trading facilities;
  • Educational institutions;
  • Medical center;
  • Spa salon;
  • Two marinas for yachts;
  • Conference center;
  • 18-hole golf courses.

The role of Orascom

Orascom has been actively operating in the international luxury real estate market since 1989 and currently has offices in nine countries, including the UK, Egypt, Jordan, Morocco, the UAE, Oman, Romania, Montenegro, and Switzerland. Sergey Zamuruev emphasizes that the participation of such a major player asOrascomis a well-considered and strategically justified step for the Montenegrin government.

Advantages of collaboration

Firstly, working with a single major partner prevents urban planning mistakes similar to those made in Budva, where overdevelopment has led to a shortage of parking spaces, a lack of green areas, and social facilities, negatively impacting Budva's potential to become a worthy resort.

Secondly, it is expected that Orascom will soon receive significant funds from the sale of its mobile assets, which will reduce the risks of financial difficulties. Thus, the future of Luštica appears increasingly promising in light of these new initiatives.

How is Lustica transforming into an elite resort in Montenegro?

Conclusion

In concluding my article on the development prospects of the Lustica Peninsula, I am increasingly aware of how important this project is not only for Montenegro but for the entire region. Given its strategic location between the Adriatic Sea and Kotor Bay, the new elite resort, with its eight-hotel structure and vast residential complex, represents a real opportunity for attracting investments and creating jobs. However, we must not forget the challenges that local authorities and developers face.

Key tasks

The key tasks remain:

  • Modernizing infrastructure, including roads and sewage systems, to provide residents and visitors with comfortable conditions.
  • Thorough planning to avoid overcrowding and urban planning mistakes.
  • The interests of local residents should be taken into account in the context of tourism growth and development.

Collaboration with Orascom

There is also a need for careful planning to avoid overcrowding and urban planning mistakes similar to those that have already occurred in other Montenegrin resorts.I hope that Luštica will become an example of successful and harmonious coexistence between modern resort development and the unique nature and cultural heritage of the region.It is important for the local residents not only to experience the economic benefits but also for their interests to be taken into account.

The future of Luštica

I believe that in terms of long-term progress, all these efforts will pay off. We are on the brink of a new era for the Lustica Peninsula, and we look forward to what the future will bring.

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