Podgorica – By the beginning of summer season, all 36 villas in the tourist complex Astra Montenegro on Cape Zavala will be built, and construction of an exclusive hotel will begin in autumn, Vyacheslav Leybman, Director of the Mirax Balkans, reported yesterday to the Vijesti newspaper.
Leybman says that the Mirax has contributed enough money in order to complete the first stage of one of the hugest tourist complexes on the Adriatic by June. The world economic crisis has influenced the activity of the Mirax, so the work progress has slowed down a little.
О.: We planned to complete the works at this object in April, but June is approaching, Leybman said.
V.: It was said that the Mirax had suspended all projects on Cape Zavala due to crisis.
О.: Probably, it was said so because we are doing other kind of work on Cape Zavala. Engineering works have already been completed. Now there are fewer workers, because we are doing finishing works. These works are being implemented at all 36 villas, i.e. at 60 residential units. Besides the villas, the infrastructure – water supply system, power supply network and communication lines – will be completed by the beginning of tourist season. Now we are going to start interior works at the villas and works at coastal zone. Coastal zone is going to be provided with walking area, beaches, restaurants, cafes and other facilities specified in the plan.
V.: Will a hotel be built on Cape Zavala?
О.: Of course, we will build a hotel. As I’ve already said, the word economic crisis, which I would call a crisis of distrust, has influenced the progress of construction works.
In September or at the beginning of October we are going to commence construction of the hotel. After all, it’s our obligation. We promised that Montenegro would have a new tourist symbol, and this will be the hotel. And it will be so. I say it again: we’ll contribute as much as it is necessary, and implement all our obligations to Montenegro. We have friendly relations with the largest world banks that know what the Mirax is and what we do. They absolutely trust us. It provides us with financial support, and that means that we’ll accomplish this project as it is planned. Now the hotel is at its designing stage, and we are seeking for a managing company. We expect that it will be one of the best brands in tourist business.
V.: Taking into consideration that you are finishing the construction of villas, how many villas have you sold? Has the crisis hampered the selling?
О.: Changes in the dynamics of selling? This process was much better earlier. Now it became slower, but we foresaw that situation. We were ready for this decrease because we were aware of a financial crisis to come. Nevertheless, I have to admit that we are satisfied. We’ve sold approximately 60 percent, but the Astra Montenegro is still of great interest. Our market research shows that we are to sell the rest of flats as soon as the first stage is completed. Our optimism is based on the interest of customers, as many of them are willing to see the complex completed.
V.: How is the Moscow Mirax working during the crisis?
О.: Nothing has changed since the end of the previous year. We expected the crisis to come, and the Mirax is doing its best to complete all started projects. The most important projects are in Moscow. Every year more and more people come to this city to live there. The thing is that prices for flats have fallen down and the number of customers has decreased, but the situation will improve in August. When this panic subsides, people will again go on buying real estate. We are also waiting for this here in Montenegro. It’s important for this panic to subside.
В.: Will the things, that were 800 Euros, be 100 Euros? The price for land and real estate in Montenegro has fallen down. What are your forecasts for this situation?
О.: This reduction of price for land was to happen. The prices were unreal. Montenegro, all of a sudden, but deservedly, became the hit of the region, and lots of people were willing to buy a flat on the Montenegrin coast. There was an excess of demand over supply, so the prices rocketed up. So far as the quality real estate in concerned, I wouldn’t recommend selling it. Quality has always been valued. Those who can wait – should wait.
Prices will rise again, but not so soon, as many people may expect, and real estate will pay itself off. Low-quality real estate will never cost the same price, as it has been over the last two years. The cost of land will continue to fall down and it won’t give this quick and large earnings. The cost of land included into the cost of real estate has been unreasonably high till nowadays. The situation should be changed. Prices are falling down and will keep on falling till they become reasonable. What was 800 Euros will be 100 Euros.
В.: Will the crisis influence the number of tourists?
О.: It will, but it’s influence won’t be significant. Montenegro remains popular, and I expect that its popularity will increase together with the improvement of infrastructure and services we render. This year we are going to host mostly our local tourists, as well as tourists from Russia. Mostly it will depend on Montenegro itself. We must adjust prices, develop infrastructure, improve the quality of the services rendered, and probably, many people may be astonished at their visit. | 
