Holiday homes in Montenegro: £1 billion investment for majestic Boka Bay, with 1,500 homes, golf course, marinas and hotels

The small Balkan state of Montenegro, once part of Yugoslavia, has grand plans for its future.

It aims to capitalise on having one of Europe’s most arresting locations, majestic Boka Bay, with high-quality homes in a little-known destination within three hours of most European capitals.

Boka Bay is the focus for most large-scale development in Montenegro and is exceptional, a fjord-like inlet off the Adriatic Sea stretching for 17 miles under steep forested mountains to the Unesco World Heritage town of Kotor.

Children jump and swim around the water’s edge, 65 miles in all, while in the middle of the bay, the scenic 15th-century church of Our Lady of the Rocks sits on its own man-made island.

New resort Lustica Bay welcomed its first residents and yachts last year and has already set remarkable records.

It is Montenegro’s largest and most expensive project with an investment close to £1 billion and plans for 1,500 homes over the next 10 years.

There will be two marinas, seven hotels — the 111-room five-star Chedi Hotel is already open — and Montenegro’s first 18-hole golf course, designed by Gary Player.

Developer Orascom, in a joint venture with the government of Montenegro, plans a new town on a huge 1,700-acre greenfield site directly on the Adriatic Sea.

By adding schools, medical centres, supermarkets and sports facilities in carefully landscaped grounds they aim to encourage a year-round community, somewhere local families will want to live just as much as holidaymakers.

Homes at Lustica Bay range from studio apartments in Centrale, the workaday heart of the resort, from £122,500 and two-bedroom homes of 797sq ft from £201,500 up to substantial detached villas with private gardens and pools for over £1.8 million.

Two- and three-bedroom townhouses with private gardens, pools and garages start from £756,000.

Orascom has many similar and successful “new town” developments under its belt including Andermatt in Switzerland. Its detailed masterplan at Lustica Bay allows for a community — eventually — of up to 14,000 residents.

“The vision for Lustica Bay is bold and ensuring the infrastructure is in place is critical,” says chief executive Darren Gibson.

“Orascom has a long-term vision and the financial back-up to pay for it. What really resonates with our buyers is the open space where we will only develop 10 per cent of the total site, the golf course, the direct and open access to the sea and the combination of quality building with good-value pricing.”

Porto Montenegro is Montenegro’s most established resort, opening in 2009 on the site of a former military marina.

It’s conveniently close to Tivat town and its international airport, and it is popular with visitors who come to eat and shop at the smart restaurants and boutiques while gazing at the dazzling collection of yachts and boats in the 491-berth marina.

Porto Montenegro has 400 completed homes and is selling new one- to four-bedroom apartments from £448,000, most facing the magnificent marina on the bay.

In a prime position at the entrance to Boka Bay, superbrand One & Only is preparing to open its first European hotel at Portonovi next year.

Portonovi is a handsome new resort 10 minutes’ drive from the town of Hercog Novi.

Its highlights include a 238-berth marina taking yachts up to 395ft, a heliport, a sandy beach —rare on this pebbly coast — and 275 homes including 10 One & Only branded villas with private beach and sea access priced from £8.5 million.

Portonovi aims to focus on personal service through full-time concierges, and its wide range of restaurants includes top-end Locatelli and Tapasake.

One- to four-bedroom apartments of 538sq ft to 6,590sq ft start from £358,000 in a mix of handsome contemporary and traditionally styled buildings around the marina.