REAL ESTATE TREND ALERT
(FOR MEMBERS ONLY)
Wednesday, August 9, 2023
Dear Reader,
I’ve traveled south from the Spanish Basque country on my latest scouting trip.
I’m now in the north of Portugal and reflecting on potential opportunities all along this coast. I’ll write up a detailed report as soon as I get to my base in Praia D’el Rey on Portugal’s Silver Coast.
For now, if you have Instagram, I’ve thrown up some videos and photos there while on the move. Here’s Viana do Castelo, a charming city on “the Green Coast” where swathes of sand meet the Atlantic…
When I’m moving fast on a scouting trip I often throw up photos and short videos of what I’m seeing on my Instagram. My full detailed report on opportunities along the Green Coast will be in your upcoming RETA issue.
As you know my scouts are also on the move. Eoin Bassett is just back from “the Hawaii of Europe” and writing up his findings. He explored the Azores and Madeira, warm-weather Atlantic islands and part of Portugal.
And another team member is coming to the end of his road in Montenegro. Below Paul O’Sullivan has a note on what he’s found in the last two days…
Wishing you good real estate investing,
Ronan McMahon
P.S. I’m getting together with Paul and Eoin on a call this Friday to talk through all our recent scouting. My plan is to put all our reports together for a bumper special edition of your monthly Real Estate Trend Alert issue. We have seen a lot of real estate over the last couple of weeks and discovered some truly spectacular destinations….stay tuned for your August issue and my travels in Spain and Portugal, Eoin’s island-hopping in the Atlantic, and Paul’s epic road-trip down the coast of little Montenegro. Our Project Prosper scouting mission continues!
Notes from the Pirates’ Lair
By Paul O’Sullivan
I’m dining on fresh calamari in a 25-century-old castle. In front of me, five waiters lift a piano onto the rampart for the nights entertainment. From my table under a canopy of ivy, I spy the infinite horizon of the Adriatic Sea and the soft evening light lending its golden hue to the craggy headland across the bay.
I’ve reached the end of the line…
Having traveled nearly all of Montenegro’s 183 mile coastline, I’ve found myself in the town of Ulcinj, not far from the Albanian border.
Ulcinj castle, now a maze of restaurants and hotels, is a great place to take in the views.
This is a wholly different place to everything that I’ve seen so far on this scouting. It has a marked oriental flavor, with Turkish-style houses overhanging it’s cramped Old Town streets.
I’ve found little of the Venetian influence that dominated the northern coast. The population here is an Albanian majority, with minarets and mosques dotted throughout the town, and lively music echoing out of its numerous kebab stands.
Ulcinj has one of the few true sandy beaches in all of Montenegro.
For three centuries Ulcinj was the main pirate stronghold in the eastern Mediterranean. At one time over 400 ships harbored here. Plundering and slave trading were the main industries.
Thankfully, tourism proves a more lucrative pursuit today…
Ulcinj has some of the best beaches in Montenegro. As well as the country’s longest: a powdery, eight-mile-long beach called Velika Plaza (Long Beach). Its breezy thermal winds draw kite surfers from across Europe. And at the heart of Old Town, the bay is abuzz with boats and jet-skis.
There’s good value here, too. For instance, I came across a two-bedroom condo with a terrace that overlooks Old Town and the bay for just €125,000. See the listing here.
A sizable 2,368-square-foot three-bedroom house with a large terrace overlooking the town and sea lists for €290,000. See the listing here.
The big pull factor in Ulcinj is its sand beach. Elsewhere in Montenegro you’re more likely to find rock or shingle beaches. However, it’s also one of the least accessible of the coastal towns, being just over two hours from Tivat airport (and three from Tirana, the capital of Albania.)
Arguably, if you’re going to come this far, you might as well go a little farther and get even better value over the border in Albania. Though, some say Ulcinj is nicer than anything you’ll find there. (You can find out what my colleague Eoin Bassett discovered on a scouting trip to Albania last year, right here.)
This morning, I embarked from the resort town of Budva. Easily the busiest on the coast of Montenegro…
It’s been nicknamed the “Montenegrin Miami,” but I’d compare it to Playa del Carmen on Mexico’s Caribbean. It’s jam-packed with tourists, drawn to the town’s array of beaches, watersports, and nightlife. They sunbathe through the afternoon; stroll the atmospheric Stari Grad (Old Town) in the evening, stopping for ice-cream or palačinke (Montenegrin pancakes filled with Nutella, nuts or jam); and at night they party ‘til dawn at the many buzzing bars and nightclubs.
Despite the party-town reputation, however, I found it pleasant and relaxed (aside from the busy traffic). There was no loud music spilling onto the street. And even the city’s construction is forced to pause during peak tourist season to maintain the peaceful atmosphere—a nice touch.
The view from the top of Budva’s citadel at the heart of Old Town.
Folks come to Budva from all over. I’ve heard French, German, Polish. Italians road trip here, taking the ferry across the Adriatic from Bari to the port city of Bar farther south. There is even a noticeable contingent of Americans. And it’s wildly popular with Russians.
Indeed, the real estate market here has gotten a huge influx of Russian money since the war began, despite sanctions that make it difficult for them to move it. I’ve been told that prices have jumped 45% in just six months.
You can expect to pay anywhere from €2,000 to €4,500 per/sqm (about $203 to $457 sq. ft.) within 15 minutes’ walk from the beach.
Buy farther back and you’ll pay less. A two-bedroom condo I found with expansive city views that stretch all the way to the bay lists for just €139,550, but that’s an anomaly. See the listing here.
I’m still digging on the short-term rental market. Without reliable statistics, it’s hard to gauge.
But Budva certainly has a strong summer season, with decent demand in the shoulder months of April and September.
One thing I’m looking into is demand for high-end villas, which should fare better in the low season. I spoke with the senior consulting manager of the Ananti Resort, Residences & Beach Club, which sits on the coast just 20 minutes south of Budva and he tells me that their luxury villas rent for €70,000 a year. He says Montenegro has a lot of untapped year-round potential, with hiking, hunting and skiing growing more popular.
There’s good value to be found on the higher end too. You can find super-luxury villas here for just under the €1 million mark. Comparing that to elsewhere on the Mediterranean, you’re talking half price.
Of course, the flipside is that Montenegro is a cash market. Getting bank financing here is extremely difficult for foreigners, which makes high-end real estate a greater financial commitment.
I’ll be compiling my full report for Ronan on Montenegrin real estate in the coming days, including more incredible beach towns where you can own two-bedroom condos for less than €200,000.
Ronan says: Like I said above, this Friday I’m talking to Paul. You can expect his full report in your August issue, along with my own from Green Spain and Portugal and Eoin Bassett’s full report from “the Hawaii of Europe” and “the Pearl of the Atlantic.” The islands of the Azores and Madeira…
Stay tuned! (And watch my Instagram for quick-fire photo updates of my travels in the meantime.)