LAST year the property market was abuzz with talk of developments in the little known state of Montenegro.

Following a close referendum it declared itself independent from the larger former Yugoslavian state of Serbia.

However even in that short time it has progressed onto the world stage with pace . . .joining the UN, adopting the Euro as its official currency and already in talks with the EU with an aim of full membership by the end of the decade.

Like the country itself, former Dublin resident and native of Donegal, Kathryn Dunne was equally adept and identified Montenegro as an emerging market as far back at mid-2005. Along with her partner Stuart, Kathryn found out about the area in much the same that most would be investors to . . . by attending a property exhibition. "In May 2005 we went to a property exhibition in the RDS and were initially looking at Croatia and Bulgaria and met some agents who were selling in Montenegro and a few weeks later we were out there."

Reports from the Irish Bankers Federation and Irish property agents have shown that attitudes and trends for Irish investors have begun to change. Previously buyers would queue up to snap up the latest off-plan properties in eastern Europe or other far flung countries that they most likely had never have heard of before. They were enticed by glamourous locations, the chase to find the next emerging market before anyone else and expected high returns. In some cases deposits were paid on developments before the buyers had ever stepped on a plane or a brick had been laid.

However, buyers have now become much savvier, are going out to inspect locations and asking more questions.

Following on this trend Kathryn, who previously worked as an IT project manager for a Dublin financial software company, is an example of how the Irish market is maturing. Instead of just buying a property in Montenegro she decided to sell up in Dublin and start a new life in the town of Kotor on the Adriatic coast.

"We bought an apartment in 2005, initially as an investment and came out on for a holiday and loved it so much we decided to move out and start up a business."

Having no kids the move was pretty painless and seeing a gap in the market she decided to set up a property management, a property renovation company and also a holiday rental business.

The area, especially since the referendum, has become very popular with Irish and English buyers and developers and Kathryn reports that she has never been busier.

As an emerging country Montenegro does have some developmental issues, especially when it comes to the infrastructure. "To have a business here can be quite frustrating sometimes as the phone lines are not always the best, but in some ways they are quite advanced. We have a high-speed connection here, which we didn't have in Dublin.

It can be expensive to ring abroad but everyone has a mobile phone, the roads are being improved all the time and you have to adapt yourself from Dublin speed to the Montenegro pace."

Life in Montenegro certainly has been a change of gear. "It is a different culture and a different way of doing things.

They work really hard in the winter so they can have the summer off and in some ways they have life sorted." She had initially looked at buying in Bulgaria but upon comparison decided that Montenegro seems to have much more culture and the lifestyle seemed more attractive.

Buying in 2005 Kathryn was one of the first to do so. "Prices have gone up in the last year and when we bought we bought at a good time." The first property they bought for less than 100,000 and are in the process of renovating another one.

Kathryn has also started a property rental company and says she was surprised by the level of interest and has also found that a lot of her customers are booked out. "There are only a certain number of properties available and a lot of new developments are just finishing or are even booked out before they are finished." In terms of income she reports that a two-bed apartments would rent out for 600- 700 a week and the most popular properties are old style buildings by the coast or in older areas.

Aer Lingus operates direct flights to nearby Dubrovnik and during the season charter airlines operate to the capital to Tivat (which is 10 minutes from Kotor) so it is easy for her to get home or for friends come to visit. However, there are still some small luxuries that she does miss about Dublin.

"We have no regrets about moving and don't miss anything about home . . . except maybe the Chinese takeaways!"

While there may be less variety when it comes to food it certainly seems to have benefited the locals. "They are hyperhealthy and they all look really great. You rarely see an overweight local and all the women have great figures and perfect skin. All the food is organic and the wine here is fantastic."

While eastern Europe and the area may generate talk of corruption or mafia-style bosses Kathryn reports that while there is certainly crime she has not encountered any problems while operating her businesses. She believes that the environment is much more similar to what it was like growing up in Donegal when she was younger. People don't lock their doors or worry about crime in the same way as they do in Dublin.

"We are here and are not planning to go anywhere for the foreseeable future, " Kathryn says with gusto.

Montenegro Property Management: 00381-6742 7548; www. montenegropropertymanag ement. com Simple Overseas Properties: 1850 200 711; www. simpleoverseas. com

KATHRYN'S TIPS FOR MOVING TO MONTENEGRO

Research the coastline, and find the area which appeals most before buying or renting. Some locations are more local than tourist areas. Also, some areas, which are quiet in winter months, are very busy in summer season.

Learn at least a few words!

Serbian/Montenegrin is a difficult language to learn, but amuse the locals by trying. Engage the services of a good translator or lawyer to help you with anything important.

Register with the police and foreign inspector on arrival, and apply for residency immediately if you plan to stay long term. You will be issued with a three-six month temporary visa whilst you apply for residency. Application for residency can take up to one-two years.

Bring a car. A foreigner cannot buy and register a car here without owning a company.

Second hand cars here are twice the price than you can expect to pay in Ireland.

Invest in a pair of designer sunglasses . . . fashion essential even in the rain!

FAST FACTS

Capital: Podgorica Population: 650,000
Size: 13,812sq km
Language: Montenegrin, Serbian, Albanian
Currency: Euro
Religion: Orthodox, Muslim, Roman Catholic
History: the world's newest nation, declared its independence on 3 June 2006. The country gets its name (black mountain) from the dark mountain forests that cover the land.