In the intervening months however, the country has kept up the momentum and has strived to create its own identity as a new nation.

The state is expected to join the Council of Europe in early 2007, it has already adopted the euro as its official currency, and many believe that its independence has likely brought forward its timetable for EU accession from 2014 to 2010.

When investing in an emerging market abroad, investors look for a number of attributes: low investment, high tourism levels and high capital appreciation. The attention attributed to Montenegro over the last few months has had a positive effect on both its tourism and property industries, and the Irish have been one of the first to recognise this.

While the war may have hampered the state's economy it has recovered considerably and in 2005 the World Travel and Tourism Council identified Montenegro as the "fastest growing travel and tourism economy in the world, " with 820,000 tourists visiting.

Sophi Palmer and Niamh Walsh of Lisney Overseas Residential visited the area at the beginning of September and reported that "it is like Tuscany meets New Zealand, " with high rugged mountains, alternating deep ravines, expansive plains and a fascinating coast.

In January, Irish developers Celtic Properties, which consists of four Corkmen, set up their first project in Montenegro and without doing any marketing they sold all properties in less than three months, with approximately 98% of buyers being Irish. This was a big gamble says Walsh, as it was before the referendum, but it has paid off handsomely as the price of the properties has risen by 40%.

While at present a figure of 30% capital appreciation is more likely, Walsh reports that there is not a huge amount of development at the moment and the planning authorities are very strict about what can be built and don't want high rise buildings or ugly tower blocks everywhere.

Lisney and developers Celtic Properties are launching their latest development 'The Blue Horizon' in early October.

Located between the old town of Budva and the resort of Sveti Stefan, in a former 14th century fishing village, the area is due to undergo rejuvenation with a multi-million-euro refurbishment project planned to further enhance the area's glamour quotient. 'The Blue Horizon' consists of 86 apartments, with both one- and two-beds available, and is in one of the most fashionable and upmarket areas along the Budva Riviera.

"It is like the Ballsbridge of Montenegro, " says Walsh, where the properties are highquality but are not as reasonably priced as others available on the market in other areas.

However, buyers do benefit from higher than normal rental returns of 5-7% while the average in Montenegro is approximately 3%.

Prices start from 139,000 for 50sq m (538sq ft) one-bed apartments. Mortgages are not currently available from local banks. Flying time is just under three hours to either Dubrovnik or Tivat (the local airport) from Dublin.

Agent: Lisney Overseas Residential, 01-6382700; www. lisney. com