Luštica Development has formally started wastewater-infrastructure works for the next residential phase of its golf district near Tivat, preparing a site for 13 villas and golf houses with a combined above-ground gross floor area of almost 3,374 square metres.
The construction notice marks another incremental step in the development of The Peaks, the golf-centred neighbourhood within Luštica Bay’s wider €1.6bn master plan. It does not yet represent the start of construction on all 13 residences. The present works cover the wastewater-disposal system required before the buildings can proceed.
That distinction matters. Enabling infrastructure attracts less public attention than a hotel opening or a residential sales launch, but it is one of the most consequential stages in a large mixed-use project. Roads, water, wastewater, electricity, telecommunications, landscaping and stormwater systems determine when individual properties can be constructed, occupied and legally connected to municipal services.
Luštica Development filed the commencement notice on July 31, 2026, and the Ministry of Spatial Planning, Urbanism and State Property recorded it on August 3. The work will be carried out on part of urban plot UP 1, formed from cadastral parcel 1043/74 in Radovići, within the amended detailed urban plan for Golf and Donji Radovići West.
The wastewater construction permit was issued on July 25, 2025, meaning that approximately a year passed between permitting and the formal start of execution. The available documentation does not disclose the value of the infrastructure contract, the completion deadline or the planned construction date for the residences themselves.
The contractor is North Star MNE, based in Herceg Novi, while professional supervision will be provided by Podgorica-based CAU – Centre for Architecture and Urbanism. The principal wastewater design was prepared by Vigoris Ecotech, with the technical documentation reviewed by the Institute for Development and Research in Occupational Safety.
The residential phase, identified as I-b2, comprises ten villas and three golf houses. The planned above-ground gross developed area is 3,373.82 square metres, while the combined building footprint will cover 2,626.25 square metres.
On a simple average, the scheme provides roughly 260 square metres of gross above-ground space per building, although the final distribution will vary by property type. The substantial footprint relative to the total above-ground area indicates a low-rise design dominated by large ground floors rather than dense, multi-level construction.
The permitted building formats include basement and ground floor, or ground floor plus one upper level. The residences will use a combination of silicate render and traditional Luštica stone, with tiled pitched roofs and flat green-roof sections. The architectural design was prepared by NRA Atelier of Podgorica, and approval from Montenegro’s chief state architect was obtained in April 2024.
The plot is designated for type-two golf villas. Planning rules permit both detached properties and attached buildings containing between two and five accommodation units. This provides the developer with some flexibility to adjust the unit mix in response to sales absorption, construction costs and demand for different ownership formats.
The infrastructure works form part of a much larger effort to turn Luštica Bay from a seasonal marina resort into an integrated residential town. The project is being developed across approximately 6.9mn square metres of land on the Luštica peninsula by Luštica Development, controlled by Orascom Development Holding, with the Montenegrin state holding 12.24 per cent following the conversion of state receivables into shares.
Orascom’s model differs from the compact luxury-resort approach used at Portonovi and from the marina-led urban district built at Porto Montenegro. Luštica Bay is a long-duration land-development platform in which the developer creates roads, utilities, neighbourhoods and hospitality anchors in phases, then releases residential and commercial inventory as the destination matures.
That structure requires heavy early infrastructure expenditure, but it also allows the developer to capture increases in land value generated by each completed phase. A road, marina, hotel or golf course does not create revenue only from its own operations. It raises the value and saleability of the surrounding residential land.
Government data show that approximately €637.4mn had been invested in Luštica Bay from the beginning of construction in December 2013 through the middle of 2025. Investment during the first six months of 2025 alone reached €62.8mn.
The official assessment put physical delivery at roughly 11 per cent of the full master plan, demonstrating the length of the remaining development horizon. Company presentations have sometimes used higher completion estimates based on different measurements, but the government’s figure reflects how much of the extensive approved construction programme remains undeveloped.
By the middle of 2025, Luštica Bay had delivered about 450 apartments, 13 houses and seven villas, the 111-room Chedi Luštica Bay, a smaller 31-room hotel in Centrale, 25 commercial units, five beaches and a marina with approximately 121 berths. More than 1,000 properties have reportedly been sold across the development’s successive residential phases.
Taxes paid since construction began reached around €48mn, while employment across the destination has expanded into several hundred permanent and seasonal positions. The project’s long-term plan envisages more than 3,000 apartments, over 300 villas, multiple hotels, two marinas, retail and social infrastructure, and a permanent population of several thousand residents.
The golf district is central to the next stage because it creates a second premium-property anchor away from the existing marina waterfront. Marina Village initially captured the strongest location premium through direct access to the water, The Chedi hotel and the first operating marina. The Peaks is designed to create a separate pricing category based on golf frontage, elevation and views over both the Adriatic and the Bay of Kotor.
The planned 18-hole championship course, designed by Gary Player Design, is expected to become the first full-scale golf course in Montenegro. The terrain has been positioned as a distinctive international product because each hole is intended to offer a sea view.
The first three holes have already taken shape, while completion of the full course has been scheduled for the end of 2028, followed by commercial opening for the 2029 season. Earlier plans contemplated partial operation before full completion, but delivery of a golf course on steep coastal terrain depends on extensive earthworks, irrigation, drainage, landscaping and the establishment of playing surfaces.
The wider golf and residential development was previously presented as an investment programme of approximately €400mn over six years. This envelope includes substantially more than the course itself. It covers The Peaks residences, internal roads and utilities, landscaping, club facilities and future hospitality components.
A larger golf hotel is planned for the district, with more capacity than The Chedi and facilities aimed at leisure, wellness, conferences and corporate groups. That hotel would give the course an operating anchor and help move the destination beyond a model dependent on second-home occupancy.
Golf-course economics are rarely supported by green fees alone, particularly during the early years of operation. The financial rationale rests on the premium the amenity creates for surrounding property, higher hotel occupancy and an extended visitor season. Residential sales help fund development, while the completed course supports the long-term value of the properties already sold.
This relationship explains the sequencing of the current infrastructure works. Wastewater connections for 13 new residences represent a relatively small part of the overall master plan, yet they turn another area of land into buildable inventory. Once utilities are available and construction notices are filed, the developer can move properties more credibly from marketing plans into contracted delivery schedules.
For purchasers, the difference between a master-planned unit and a serviced construction plot is material. Infrastructure completion reduces permitting and delivery risk, supports mortgage or collateral valuations and provides greater confidence that surrounding phases will be occupied rather than remaining undeveloped land.
Selected residences at The Peaks are already being marketed in the high hundreds of thousands of euros, with larger units and detached villas entering the multi-million-euro category. Public market listings for some apartment and townhouse formats have indicated values of approximately €859,000 to more than €1.4mn, while villa pricing depends heavily on size, plot, view and proximity to the fairways.
The gross developed area of 3,373.82 square metres across the new phase could therefore support a substantial end-sales value, although no official price schedule has been published for these specific 13 buildings. It would be misleading to multiply the construction area by general asking prices because gross floor area includes non-saleable and shared space, while some golf houses may contain several units.
The investment model also depends on payment timing. Integrated resort developers commonly secure reservations or staged sales before completion, using buyer instalments alongside shareholder capital and bank facilities to finance construction. Luštica Bay’s history of selling properties during planning and construction allows infrastructure and residential phases to be advanced without waiting for the entire district to become operational.
The involvement of the Montenegrin state provides an additional layer to the project’s financing and governance. The state’s holding increased to 12.24 per cent after approximately €4mn of debt was converted into equity. This aligns the government financially with the project’s long-term value, although it also requires clear oversight of land-use obligations, infrastructure delivery and the treatment of public receivables.
Luštica Bay is developed on leased state land under agreements covering construction, investment and ownership rights. Its value therefore depends not only on property sales but also on continued compliance with the master plan and contractual development commitments. Each new infrastructure filing provides evidence of physical progress against a project whose implementation will span decades.
Wastewater is particularly important on the Luštica peninsula. The area’s karst geology, limited water resources and proximity to the Adriatic make uncontrolled discharge a serious environmental and reputational risk. A premium development cannot rely on fragmented septic systems or infrastructure designed for small settlements once hundreds of residences, hotels, restaurants and recreational facilities become operational.
The design must accommodate both average occupation and summer peaks, when residential use, hotel occupancy and visitor numbers rise simultaneously. Golf facilities also introduce large seasonal irrigation requirements. The project has previously developed artificial water-storage systems intended to support the course, reducing pressure on potable-water supplies.
For lenders and property buyers, the key technical issue is not merely whether a wastewater network is installed, but where it discharges, what treatment capacity is available and whether downstream facilities can manage the full build-out. Pumping stations, backup power, odour control, monitoring and maintenance access can become critical on sloping terrain where gravity connections are not always possible.
The start of wastewater works should therefore be viewed as an enabling milestone rather than evidence that the complete residential phase is under construction. Separate notices, contractor appointments and construction programmes will still be required for the ten villas and three golf houses. The absence of disclosed contract value and delivery dates limits any firm assessment of the immediate financial contribution.
The project is advancing into a supportive Tivat market. The municipality recorded 10,870 registered tourists in early August 2026, an increase of 8 per cent from both 2025 and 2024. Hotel occupancy was 15 per cent higher than a year earlier and 48 per cent above 2024, indicating strengthening demand for organised, higher-value accommodation.
Tivat Airport handled 490,020 passengers in the first half of 2026, up 10.4 per cent, while June traffic rose 18.6 per cent to 217,322 passengers. Improved air access from Western Europe strengthens the addressable market for Luštica Bay’s residences, although the airport’s limited terminal and access-road capacity remains a constraint on further premium-tourism growth.
A golf course offers a way to reduce seasonality because golfers travel in spring and autumn, when coastal temperatures are milder and summer beach demand has receded. This could improve the annual utilisation of The Chedi, the planned golf hotel, restaurants, marina services and managed residences.
The shoulder-season argument is commercially persuasive, but it relies on air connectivity. Golf tourists typically travel with equipment, have higher service expectations and compare destinations across Spain, Portugal, Turkey, Greece and Croatia. Tivat needs reliable direct flights, efficient baggage handling and predictable airport transfers to compete with established Mediterranean golf markets.
The course will also require a domestic and regional customer base to support recurring operations outside periods of international demand. Montenegro does not yet have a mature golf culture or a large resident membership pool. Luštica Bay will therefore need golf academies, corporate events, regional partnerships and destination packages to develop demand rather than relying exclusively on property owners.
The 13 planned residences are small in number but strategically positioned. They represent the continuing conversion of The Peaks from a design concept into serviced, buildable and saleable neighbourhoods. Their infrastructure adds another layer of committed capital around the future course, reinforcing the link between golf delivery and residential absorption.
Luštica Bay has already passed the point at which it can be judged as a single resort investment. With more than €637mn deployed and only a minority of the master plan completed, it functions as a long-term urban-development platform whose economics depend on the steady release of new neighbourhoods. The current wastewater contract is one of the less visible components of that process, but it is the practical prerequisite for turning another part of the peninsula into high-value residential inventory.
