Member Article

Karanovic & Nikolic attended the 8^thFestival of Real Estate Investments – FREI, held in Budva, Montenegro, between the 15^thand 18^thMay.

FREI is now in its 8^th iteration and has grown to be one of the most significant real estate conferences in the Western Balkans. It was organised under auspices of the Montenegrin Ministry of Sustainable Development and Tourism. The participants varied from representatives of the Montenegrin state authorities, to guests from the private sector – including major investors in hospitality industry, experts on niche markets such as branded residences, lawyers, investment and portfolio managers. The programme and the participants attracted the interest of the media, and the conference had a substantial, region-wide coverage.

The programme of the conference included topics related to policies designed to boost investments in the real estate sector, with a special emphasis on the hospitality industry. The discussion ranged from proposed changes to the planning and construction legislation, reforms in sustainable development as support to investments in tourism, to the importance of integration processes for investments in the real estate sector. Other panels covered the potential of Montenegro as a destination for the development of luxury hotels, the financing of development projects, small hotel management and forecasts on the growth of the hospitality industry in the Mediterranean region.

The panellists included policy makers, executive power representatives, municipal authorities, investors, consultants, portfolio managers, planners, architects and company officials of largest investors in the real estate sector in Montenegro.

One of the conclusions from the conference is that Montenegro&s potential as a high-end destination is only going to grow. Prospects of the Boka Bay area, where there are currently two major, large-scale development projects – Portonovi byAzmontand Luštica Bay byOrascom Development, in conjugation with a success story that is Porto Montenegro, are a corner stone of the new trend of large-scale development projects on the Montenegrin coast line.

Investments in the north region, particularly in tourism sector, are going to accelerate with the construction of a highway between the Capital, Podgorica, and the northern region. Five new ski resorts, planned to open by 2020, will significantly increase the diversity of the offer of that region. Expectations are that this will broaden the tourist season, while a beneficial tax policy for investments in the north and the development of business zones in several municipalities in that region are expected to attract further investments.

This document was made by local lawyers in cooperation with Karanovic & Nikolic.This information does not constitute legal advice on any particular matter whatsoever, and is provided only for general informational purposes.