Dubai-based developer Mohamed Alabbar is preparing a new wave of large-scale investments in Montenegro, with a strategic focus shifting toward the southern coastline, particularly the Štoj and Velika Plaža area near Ulcinj. The move signals a potential repositioning of Montenegro’s tourism and real estate development axis away from the already saturated Budva region.
According to recent statements, the chairman of Eagle Hills sees Montenegro as a market with “strong but underutilised potential,” pointing to structural gaps in project scale, planning and execution that could be addressed through integrated master-planned developments.
The proposed focus on Štoj is not incidental. The area, located behind Velika Plaža—one of the longest beaches on the Adriatic—represents one of the last large, undeveloped coastal zones in the country. Unlike Budva, where land scarcity and fragmented ownership constrain large-scale development, Ulcinj offers the possibility of greenfield, master-planned investment at scale, comparable to projects previously delivered by Eagle Hills in destinations such as Belgrade Waterfront.
Recent discussions with local landowners indicate that the investment model being considered diverges from traditional acquisition approaches. Rather than outright purchase or long-term lease, Alabar is proposing a joint venture structure, where landowners would contribute property into a newly formed development company in exchange for equity participation. This model reduces upfront capital requirements for the investor while aligning incentives across stakeholders, a structure increasingly used in large-scale real estate developments in emerging markets.
The scale of potential investment has not yet been formally disclosed, but market expectations are for multi-billion-euro phased development, based on Eagle Hills’ track record in comparable projects. The company’s global portfolio includes large mixed-use developments integrating residential, hospitality, retail and marina infrastructure, often delivered in partnership with governments or local stakeholders.
The strategic rationale for Montenegro is twofold. First, the country continues to position itself as a high-end tourism and real estate destination, supported by low corporate taxation and ongoing EU accession negotiations. Second, there is a clear imbalance between demand for premium coastal assets and the availability of large, developable land parcels—an imbalance that projects in Ulcinj could address.
At the same time, the initiative comes at a moment of transition in Montenegro’s property market. As price growth in established destinations such as Budva slows and, in some segments, reverses, investors are increasingly looking toward new development zones with long-term upside potential. Ulcinj, with its scale and relatively low starting price base, fits this profile.
However, execution risks remain significant. Large-scale coastal developments in Montenegro face complex regulatory processes, including spatial planning approvals, environmental assessments and infrastructure integration. Local stakeholder alignment—particularly in areas with fragmented land ownership—will be critical to project viability.
Alabbar’s approach suggests an awareness of these challenges. By proposing partnership-based models and emphasising long-term development rather than speculative construction, the strategy aims to mitigate some of the structural barriers that have slowed previous large projects in the region.
More broadly, the announcement reflects a familiar pattern in emerging real estate markets. As prime locations mature and price growth moderates, capital shifts toward new zones where scale, planning and infrastructure 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, the Štoj and Velika Plaža projects would represent one of the most significant capital inflows into Montenegro’s real estate sector in recent years, with implications not only for tourism and property markets, but also for infrastructure development, employment and regional positioning within the Adriatic investment landscape.
