The World's Newest Independent Nation

Europe's last undiscovered secret? Hardly. But Budva, and the rest of Montenegro's northern coast, is bewitching.

International Living Postcards--your daily escape

Monday, Sept. 4, 2006
Budva, Montenegro

Picture this. Craggy mountains--some stark, others densely wooded--jeweled with villages of pale gray stone. A sea sparkling like blue topaz; a switchback coastline of bays, beaches, and coves. Medieval walled towns with crumbling fortresses and palaces emblazoned with the winged lion emblem of the Venetian Republic.

Now paint in monasteries slotted into mountain crevices and fishing villages of red-tiled roofs and shutters of deep green. Roman mosaics…olive groves…water-lilied lakes…deep canyons and the mighty Boka Kotorska, Europe's southernmost fjord. And to complete the imagery, thousands of bodies bronzing on beaches and splashing in the warm Adriatic.

I'm in Crna Gora, the world's newest independent nation. Crna Gora is what locals call their country--the rest of us are more familiar with its old Italian name of Montenegro. Both versions mean "Black Mountain."

With less than 700,000 people, Montenegro is tiny--and relatively unknown to North Americans. One real estate agent said she'd had an inquiry as to where in South America this country could be found!

If you're flummoxed too, here's how Montenegro fits into the Balkan jigsaw: Washed by the Adriatic Sea, its 190-mile coastline slots between Croatia and Albania. Land borders are also shared with Serbia and Bosnia Herzegovina.

Northern Montenegro's coastal scenery is as bewitching as Croatia's. For vacationers, however, the country is far cheaper. That's not surprising as the average monthly wage is only around $300. In restaurants with vine-shaded terraces, tasty three-course meals can cost as little as $5.75. A large glass of fruity red Vranac or local Chardonnay is less than $2. A Niksic lager beer around $1.50; an espresso $0.65.

But there's a downside to the tempting prices. The main resorts feel less sophisticated than those you'll find in Croatia…and neither is the infrastructure here as good as Croatia's.

Despite its walled old town and open-air Shakespeare performances, Budva (Montenegro's biggest resort) reminded me of Bulgaria's brash Black Sea resorts. That said, many small coastal villages around the Bota Kotorska are as lovely as you could wish for.

Four months ago Montenegro held a referendum to split from its union with Serbia. After the Balkan conflict, Serbia and Montenegro were all that remained of the former Yugoslavia--which effectively meant Montenegro being tarred with same political brush as its larger neighbor.

Montenegro's "yes" vote for independence was narrow--just 55.3%--but it's certain to mean increased attention from property buyers as well as tourists. (Incidentally, although not an EU member, Montenegro uses the Euro as its currency.)

But don't expect to get in on the ground floor. According to one Budva real estate agent, prices are up 100% in the past year in his area. In the walled town of Kotor, they've risen by 30%. Although Montenegro is attracting British and Irish buyers, the main culprits for rocketing prices are Russians. More than a few unofficial whisperings comment that property is the vehicle for Mafia money laundering.

I'll give you the lowdown about real estate in my full report in the print edition of International Living, but here's a sample: In Katica, a village on the Bota Kotorska, two-bedroom apartments in a new front-line to the sea development were recently snapped up for $140,000. At $205 per square foot, that's a reasonable ballpark figure for much of the coast. With construction costs at $60 per square foot, renovation and new-build opportunities are possibilities, too.

"Europe's last undiscovered secret" is how Montenegro is pitched to British and Irish vacationers, but the country is hardly unknown. During July and August, Eastern European visitors are here in invasion force numbers. So are Italians--regular ferries run between Bar in Montenegro and Bari and Ancona on Italy's Adriatic coast.

Many locals speak English, but it's worth carrying a Serbian phrase-book. Although it's now fashionable to call the language Montenegrin, it's identical to Serbian.

Steenie Harvey
Roving Europe Editor, International Living