Montenegro lags behind the region when it comes to shopping centers and retail parks, as we noted in our last year’s retrospective of investments in the trade sector. The situation has not changed much in a year. We still trail behind neighboring countries; however, there is some progress.
As Darko Đikanović, a real estate market analyst at the consulting company Adriatic Advisors, previously told our portal, activities in this market have been at a low level for many years, but that has recently changed with the arrival of the company BIG CEE.
The company has invested over 200 million euros in existing commercial facilities, and they have also announced new investments, particularly in retail parks across several Montenegrin cities, which will contribute to the expansion of this market. I believe that this segment is only starting to develop, and recent activities and announcements provide a positive signal in favor of that – Đikanović stated.
To recall, BIG Shopping Centers, a company that has been operating successfully in Serbia and the region for years, entered the Montenegrin market in 2022 by acquiring the Delta City shopping center. Investors have also shown interest in developing projects in Bar, Kotor, and Nikšić. In addition to Delta, the company has become the owner of the City Mall and Capital Plaza shopping centers. This is, as mentioned earlier, the largest Israeli investment in Montenegro, which will continue to grow.
When it comes to the year 2023, the focus was on domestic investments, and it was announced that the company Voli Trade plans to build a retail and catering center of around 9,000 square meters in Nikšić. The future Voli hypermarket will have a basement, ground floor, and an upper floor. It is designed as a retail and catering center, with an emphasis on the sales sector.
It will have a total of 222 parking spaces, 102 in the garage and an additional 120 on the ground level. The market’s retail space will be on the ground floor of the building, while the upper floor will include a restaurant with a semi-covered terrace, a kitchen, business premises, toilets, administration, and a VIP lounge.
Another investment that has attracted significant attention is the construction of the Budva Mall shopping center in the Budva district of Dubovica. The investor is the company V&V Investment Group, and the future Budva Mall shopping center will have a basement, ground floor, and an upper floor. The total net area of the building is 12,421.75 m2, and the gross area is 13,462.78 m2. The facility will employ around 50 workers of various professions and qualifications. It will have 228 parking spaces, 122 in the garage and 106 on the plot itself. The ground floor of the building will be dominated by a hypermarket, while the upper floor will house business premises and two café-restaurants.
During 2023, there were discussions about the arrival of Lidl in Montenegro. It has been almost two years since the announcement of the entry of the German retail chain Lidl into the Montenegrin market, but there has been no progress toward opening 20 facilities employing 1,000 workers in the near future. One of the key reasons for this is the lack of planning documentation for the locations where Lidl intends to build.
Lidl was established in Montenegro in March 2021 and has so far acquired three locations, two in Podgorica and one in Nikšić. According to information from Vijesti, negotiations are underway for the purchase of larger plots near Tivat, Bar, and Berane. No construction work has commenced at any of the purchased locations.
Last year, another investment by the company Voli was in focus. The plan is to build a new shopping center on the site of the existing supermarket in Igalo. The total gross floor area of the shopping center with the garage will be 7,995.40 m².
The underground level is designated for a garage. On the ground floor, there is a hypermarket with a service restaurant (take and go) and accompanying facilities (kitchen, storage rooms, communications, etc.). Also on the ground floor, there is a commercial space intended for a pharmacy. The upper floor includes ancillary rooms (warehouses, toilets, dressing rooms, administration in the service of the hypermarket, etc.), as well as a restaurant with a kitchen and a balcony.
The past year was marked by news of an acquisition in the retail sector. Specifically, Mercator-CG acquired 67 Franca markets with 900 employees in Montenegro. With the finalization of this acquisition, Mercator-CG, operating within the Fortenova Group since April 2021, became the largest employer in Montenegro, employing over 2,500 people. With 195 retail outlets, it also became the most widespread retail chain in the country.
Investments in Nikšić, as announced by the President of the Municipality Assembly, Nemanja Vuković, are planned by the companies Lidl and Big Fashion. The realization of these projects requires the adoption of the Spatial Plan. Vuković believes that the arrival of these two companies in Nikšić will further reduce unemployment and attract numerous other investors.
Regarding investments in the trade sector, the construction of a market for domestic products in Zeta was announced. In October of last year, a tender worth over 2 million euros was announced for the construction of this market.
