Bosnia-Herzegovina Real Estate Report

Published 27 August 2015

  • 54 pages
  • Instant access to your report online and PDF format through your account library
Bosnia-Herzegovina Real Estate Report

BMI View: The commercial real estate sector in Bosnia-Herzegovina continues to be affected by low demand and high vacancy rates. Activity is expected to remain subdued in the short term, but over the long term there is significant potential in the market. We believe that interest from international occupiers and real estate developers will increase and lead to the development of the sector in the years ahead.

Following challenging economic conditions in 2014 caused by the severe regional flooding, the economic picture in Bosnia-Herzegovina has been improving this year and the country is forecast to see economic growth of 1.7% in 2015. Domestic demand and investment will positively contribute to economic growth. We expect continued economic expansion in 2016 with growth predicted to be 2.8%, before levelling off at the same rate over the remainder of the forecast period.

In the office sector, market fundamentals are likely to improve in line with economic performance. Occupier demand is expected to increase in response to higher GDP growth and improvements in the output of the tertiary services sector. But this improvement will be gradual. The market is predicted to remain stable over the next two years, before picking up from 2017 onwards.

In the retail market, the increase in private consumption should exert a positive influence on the retail real estate sector. Following a period of deflation, prices are expected to increase, but to remain relatively low. This will support the retail sector in the short term and should help to keep the retail real estate sector stable. In the medium term, rising consumption, higher wages and falling unemployment will filter through to higher retailer demand for space and should translate into rising rents, particularly since supply is set to diminish further as a result of a lack of development. The retail sector remains under-developed in the country and there is scope for expansion, particularly in terms of developing new...

BMI Industry View
Operational Risk
Industry Forecast
Office Industry Forecast
Table: Office Rental Rates 2010-2015
Table: Office Yields 2010-2019
Retail Industry Forecast
Table: Retail Rental Rates 2010-2015
Table: Retail Yields 2010-2019
Industrial Industry Forecast
Table: Industrial Rental Rates 2010-2015
Table: Industrial Yields 2010-2019
Residential/NonResidential Building - Outlook And Overview
Table: Major Projects - Bosnia & Sarajevo
Macroeconomic Forecast
Economic Analysis
Table: GDP By Expenditure (Bosnia-Herzegovina 2012-2019)
Industry Risk Reward Ratings
Table: Central and Eastern European Real Estate Risk Reward Index
Market Overview
Competitive Landscape
Property Developers
Property Managers
Demographic Forecast
Table: Population Headline Indicators (Bosnia-Herzegovina 1990-2025)
Table: Key Population Ratios (Bosnia-Herzegovina 1990-2025)
Table: Urban/Rural Population & Life Expectancy (Bosnia-Herzegovina 1990-2025)
Table: Population By Age Group (Bosnia-Herzegovina 1990-2025)
Table: Population By Age Group % (Bosnia-Herzegovina 1990-2025)
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Real Estate Risk/Reward Index Indicators
Table: Weighting Of Indicators

The Bosnia-Herzegovina Real Estate Report features BMI Research's market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's Bosnia-Herzegovina Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Bosnia-Herzegovina.

Key Benefits

  • Benchmark BMI's independent real estate industry forecasts for Bosnia-Herzegovina to test other views - a key input for successful budgeting and strategic business planning in the Bosnian real estate market.
  • Target business opportunities and risks in Bosnia-Herzegovina through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our company profiles (inc. SWOTs, KPIs and latest activity).


BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.

Industry Forecasts Outlook

Historic data series (2010-2013) and forecasts to end-2019 for the domestic real estate industry and for the local and global finance industry.

Indicators Include:

  • Real Estate: Office, retail and industrial real estate yields for all major cities (%); short term forecasts on minimum and maximum real estate rental prices by sub-sector (USD per square metre and local currency per square metre).
  • Construction: Industry value (USDbn); contribution to GDP (%); employment (‘000); real growth (%).
  • economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).

BMI’s Real Estate Risk Reward Index

BMI’s Risk Reward Indices provide investors (real estate vendors, construction companies and financial investors) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors

Market Analysis

Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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