Lifestyle

Luštica Bay : Montenegro’s Largest Development Expands with Horizon Residences

Miodrag Spahić - May 25, 2026

Between the Adriatic Sea and Montenegro’s first championship golf course, Horizon at Luštica Bay offers Mediterranean elegance and visionary design – a rare opportunity in Europe’s rising luxury market.

Overlooking Luštica Bay’s Marina Village, and perfectly positioned between the golf course’s second hole and the Adriatic Sea, the Horizon neighbourhood is the latest evolution of Montenegro’s premier coastal development. This private, residential enclave is thoughtfully expanding with a new collection of studios, apartments, and penthouses that embody the essence of refined Adriatic living, where ancient history, contemporary architecture, and unspoiled nature converge.

Developed by Luštica Development AD, a subsidiary of Swiss-based Orascom Development Holding, Luštica Bay has already attracted over 700 homeowner-families from more than 50 countries.

With €574 million invested to date, the town features Montenegro’s forthcoming and first golf course — a Gary Player Signature 18-hole design; The Chedi Luštica Bay five-star hotel — awarded a MICHELIN Key — and hotel Centrale Luštica Bay by Angsana; a fully operational 115-berth marina; five beaches; and an increasingly sophisticated infrastructure that places Luštica Bay as one of the Mediterranean’s most compelling coastal communities.

A Historic Vantage Point Reimagined for Modern Living

Horizon’s elevated position on the hillside creates an environment of privacy and panoramic vistas, with a profound connection to the peninsula’s storied past.

Early construction uncovered the Radov Stone monument, a historically significant point where ancient communities gathered to navigate the Adriatic and await returning mariners. Today, Horizon honours this legacy by creating spaces where international residents can find perspective, reconnect with what matters, and establish roots in a tranquil coastal setting.

Horizon’s new residential release is developed in collaboration with internationally acclaimed firms EDSA and SB Architects, alongside renowned Montenegrin architectural partners. Ranging from studios to three-bedroom penthouses, each residence showcases authentic Mediterranean architecture through expansive glazing that dissolves interior boundaries, neutral palettes that amplify the region’s distinctive Adriatic light, and earthy tones drawn from locally sourced materials.

The design philosophy is deliberate: to provide a sanctuary that doesn’t compete with the beauty of the Boka Bay vista, but brings it further to life. Low-slung furnishings orient towards sea-facing vantage points, while tactile finishes and minimalist interiors act as a quiet counterpoint to the intensity of the coastal blues that lie beyond.

Elevated Outdoor Spaces and Exclusive Amenities

Looking out from a residence, the immediate foreground showcases the rugged topography of the Luštica Peninsula. This creates a textured contrast to the smooth, clean lines of Horizon’s contemporary architecture.

Exteriors are softened by green-hued shutters and arched porticos that lead onto generous private terraces. Select residences open directly onto private gardens, while cascading grounds and cypress-lined paths weave through the surrounding landscape. At night, subtle façade lighting layers each residence with a distinct and dramatic presence.

From these elevated spaces, residents gather beneath olive canopies for meals that linger long into Mediterranean nights, their conversations punctuated by stories of market mornings in the town centre and afternoons leaping playfully into the sea.

The exclusive Horizon Clubhouse anchors the neighbourhood’s social life with its lounge, infinity pool, state-of-the-art fitness centre, and dedicated kids’ club. Residents also enjoy access to Luštica Bay’s beaches and priority services across the destination, with a convenient shuttle connecting Horizon to all dining, shopping, and leisure venues. Each residence includes secure underground parking with a 25-year lease.

Preferential rates are available for yacht moorings in the marina and visits to The Chedi Luštica Bay, including its spa and restaurants.

Montenegro’s Ascending Market Offers Compelling Investment Value

Beyond its appealing Mediterranean lifestyle, Horizon represents an early entry point into a rapidly maturing market characterised by investor-friendly legislation, favourable tax structures, and consistent property appreciation that outpaces many established Mediterranean destinations.

Carved alongside the Adriatic’s open waters and the UNESCO-protected Boka Bay, Luštica Bay occupies 690 hectares on the Luštica Peninsula. Over 90% of the natural landscape is protected and free from development, a deliberate approach reflecting a commitment to environmental stewardship and sustainable growth.

Around €1.6 billion will be invested into the town by 2033, making this the largest greenfield investment in Montenegro and one of the most significant in South-East Europe. When fully evolved, the town will be home to over 6,000 residents, 3,000 apartments, more than 300 luxury villas, seven hotels, two world-class marinas, and an international school.

Three nearby international airports put Luštica Bay within a three-hour flight of most European capitals: Tivat airport is 12 kilometres away, Podgorica is 92 kilometres, and Dubrovnik in Croatia is 62 kilometres. Luštica Bay’s marina is easily accessible by sea, set along the Venice-Corfu cruising route and just a day’s sail from Croatia’s celebrated islands.

Investment Framework Designed for International Buyers

Horizon’s investment appeal is strengthened by Montenegro’s investor-centric tax environment. When purchasing property from the developer, buyers are exempt from a transfer tax, which ranges from 3% to 6% on the secondary market. Income tax is between 9% and 15%, capital gains tax stands at 15%, and there is no inheritance tax for immediate family members.

While comparable properties in established European markets command premium prices, Horizon offers an early opportunity to capitalise on Montenegro’s rapidly ascending luxury sector. Property values at Luštica Bay demonstrate a consistent year-on-year growth of 13%, with the upcoming championship golf course expected to elevate the destination’s international profile and bring additional capital appreciation.

A transparent and professionally managed purchase process is in place for international investors, underpinned by an interest-free payment plan over four to five years. The plan begins with a 20% down payment, followed by 50% in quarterly instalments during construction, and the remaining 30% in quarterly post-handover payments. This allows new owners to occupy their residence and/or generate rental income through Luštica Bay’s professional property rental service while still completing payments. Indeed, rental earnings can significantly cover quarterly instalments, taxes, and maintenance costs throughout the payment period.

Access to a Sanctuary Wrapped in Salt and Sky

Horizon at Luštica Bay establishes a new benchmark for Adriatic living. With residences starting from €426,500, and delivery scheduled for 2028, this thoughtfully expanding neighbourhood is dedicated to the enduring promise of freedom in nature, connection in community, and beauty in every sunrise.

For international buyers seeking both a refined lifestyle and meaningful returns, Horizon represents Montenegro’s most compelling coastal opportunity. Where ancient vantage points meet contemporary vision, a deeper return on investment reveals itself: a life lived in the vivid beauty of the here and now.

W: www.lusticabay.com
E: sales@lusticabay.com
T: +382 67 050 550