Alabbar eyes Montenegro’s southern coast as it looks beyond the Budva boom

Dubai-based developer Mohamed Alabbar is preparing a new wave of large-scale investments in Montenegro, with attention moving toward the country’s southern coastline—particularly the Štoj and Velika Plaža area near Ulcinj. For investors, the shift matters because it signals where future growth could be unlocked as established hotspots show signs of maturity.

Why Ulcinj, not Budva

Recent statements from the chairman of PRRS_LINK_1 describe Montenegro as a market with “strong but underutilised potential,” citing structural gaps in project scale, planning and execution. The proposed focus on Štoj is framed as a way to address those constraints through integrated master-planned developments.

The rationale also contrasts Ulcinj with Budva. In Budva, land scarcity and fragmented ownership are described as limiting large-scale projects. By comparison, Ulcinj is presented as offering access to greenfield coastal land that could support master-planned investment at scale—similar in concept to projects previously delivered by Eagle Hills in destinations such as Belgrade Waterfront.

A joint venture model to reduce upfront burden

Discussions with local landowners suggest Alabbar’s approach may differ from traditional acquisition strategies. Rather than buying land outright or entering long-term leases, the proposal centers on a joint venture structure: landowners would contribute property into a newly formed development company in return for equity participation.

The stated benefit for the investor is lower upfront capital requirements, while the structure is intended to align incentives among stakeholders—an arrangement that has been used in large-scale real estate developments in emerging markets.

Scale not disclosed; expectations point higher

The potential investment size has not been formally disclosed. However, market expectations cited in the article point to multi-billion-euro phased development, drawing on Eagle Hills’ track record in comparable projects.

Alabbar’s broader portfolio includes large mixed-use developments that combine residential, hospitality, retail and marina infrastructure, often delivered alongside governments or local stakeholders.

Strategic drivers—and why execution will be tested

The strategy for Montenegro is described as having two main components. First, the country continues positioning itself as a high-end tourism and real estate destination, supported by low corporate taxation and ongoing EU accession negotiations. Second, there is said to be an imbalance between demand for premium coastal assets and the availability of large developable land parcels—an imbalance that projects in Ulcinj could help correct.

The timing also reflects a transition underway in Montenegro’s property market. As price growth slows—and in some segments reverses—in established destinations such as Budva, investors are increasingly looking toward new development zones with longer-term upside potential. With its scale and relatively low starting price base compared with mature areas, Ulcinj fits that profile.

Still, execution risks remain significant. Large-scale coastal developments face complex regulatory processes, including spatial planning approvals, environmental assessments and infrastructure integration. The article also highlights that stakeholder alignment will be critical where land ownership is fragmented.

A potential next chapter for Adriatic capital

Overall, the announcement reflects a familiar pattern in emerging real estate markets: once prime locations mature and price growth moderates, capital tends to move toward new zones where scale and planning can unlock the next phase of development. In Montenegro’s case, that next phase may increasingly be defined not by Budva but by the underdeveloped southern coastline.

If realised, Štoj and Velika Plaža would represent one of the most significant capital inflows into Montenegro’s real estate sector in recent years—potentially reshaping not only tourism and property markets but also infrastructure development, employment and regional positioning across the Adriatic investment landscape.