At the beginning of June 2026, the state-owned company Monteput and the world-renowned French construction giant Bouygues Travaux Publics signed a Memorandum of Understanding. The subject of the agreement is the design and construction of the Adriatic-Ionian Highway section Čево — Krivошije (it runs above the Bay of Kotor from Herceg Novi toward Podgorica).
At first glance, this is a small stretch of about 16 kilometers long (in some project packages, up to 24 km is mentioned). However, for Montenegro’s transport logistics and real estate market, this project has strategic, revolutionary significance.
Podgorica — Herceg Novi in 100 km instead of 145: the Bay of Kotor becomes closer
Today, the route from the capital (Podgorica) to the coast of the Bay of Kotor (in particular, to Herceg Novi) is a long and logistically difficult journey. Drivers have to choose: either go along the coast, which is congested in the summer season (via Budva and Kotor), or via Nikšić and Grahovo. The current route is about 145 kilometers long.
The new road, passing through Cetinje, Čево and Krivошije to Risan, will reduce the distance between Podgorica and Herceg Novi to a record 100 kilometers.
What does this mean for the real estate market and tourism?
- Relief for the coast: tourists and expats will be able to reach the Bay of Kotor by bypassing the endless summer traffic jams of Budva and Tivat.
- Year-round accessibility: quick access to Podgorica International Airport will make real estate in Herceg Novi, Risan and Perast even more attractive for permanent residence and premium tourism.
- Development of the suburbs: the section will connect the central part of the country with the coast through a mountainous region, giving a powerful boost to the development of ecotourism and the construction of country villas in the interior.
Complex engineering and French quality from Bouygues
The Čево — Krivошije section is a serious challenge for engineers. Along just 16 kilometers of the route, it is planned to build 8 bridges and viaducts with a total length of about 2.9 km. That is why the participation of the French company Bouygues seems logical. The group has enormous experience in implementing the most complex European projects.
As a successful regional example of cooperation with Bouygues the Istrian peninsula in Croatia is often cited (the BINA-Istra project). Montenegrin Prime Minister Milojko Spajić said that the project is planned to be implemented under a concession model, that is, without a direct increase in Montenegro’s public debt. French investment and expertise will make it possible to build the road to the highest EU standards.
It is worth noting that cooperation with Paris has gone far beyond road construction. Earlier, at a meeting with the French president, Milojko Spajić also reached an agreement on the implementation of another socially important project for the country. This refers to the construction of a new modern hospital in Podgorica, which will be carried out with the support of French experts. The development of medicine of this level in parallel with the road network is a huge plus for Montenegro’s overall investment climate.
Investment focus: Grahovo and new development zones
For real estate investors in Montenegro, this project is a clear signal to pay attention to the continental areas adjacent to the Bay of Kotor. Čево will become the most important hub of central Montenegro, and Krivошije and Grahovo will emerge from the “infrastructure periphery”.
In the future, the Adriatic-Ionian Highway will connect Montenegro with Bosnia and Herzegovina (toward Trebinje and Corridor 5C) and further with Croatia and Central Europe. The Montenegrin coast will cease to be a dead-end zone and will integrate into the European motorway network.
MD Realty expert opinion: “Every time a new modern road is built in Montenegro, land and real estate within its accessible radius become more expensive. That was the case with the opening of the first section of the Bar — Boljare highway, and it will be the same with the Čево — Krivошije road. For investors, a unique window of opportunity is now opening to buy plots for building authentic villas in the foothills of Boka at a significantly lower budget than right on the waterfront, but with a guarantee of future transport accessibility”.
We at MD Realty continue to closely follow the development of Montenegro’s infrastructure projects so that we can offer our clients only the most liquid and promising real estate.
Photo and news source: Investitor