The Growth of Real Estate – B&H
REAL ESTATE MARKET
Sarajevo is the most developed market in BiH.
Why? Because of businesses, and international companies that are basing their offices in the Capital.
Commercial properties can also be found in major cities, for instance:
- Banja Luka
*all of the cities have more than 100,000 residents
DEMAND – REAL ESTATE OF BOSNIA AND HERZEGOVINA
New developments and reconstructions are reducing the gap between supply and demand.
Tenants move from adapted residential apartments to newly constructed office premises.
Larger companies, often decide to buy or build their own building.
An example of this is NLB bank, which opened its new building in Sarajevo in 2019, as well as Kula Otoka C45, a mixed-use business and residential tower, which opened in the spring of 2019.
RENT AND VACANCY RATE
Vacancy rates are below 10% in the Sarajevo office market class ‘A’ buildings.
Moreover, monthly rents range from EUR14– EUR18/m²/month for class ‘A’ and around EUR9– EUR13/m²/month for class ‘B’ office premises.
The monthly rent in Sarajevo’s suburban areas ranges from EUR5–EUR9/m²/month.
Investor Avaz Roto Press changed the design of the announced Ski Tower building in Sarajevo and is instead presenting the new R Tower, which is expected to reach 181m in height. It is planned to include residential, office and retail spaces.
MGT, Marija Green Tower, a greenfield development 22-floor mixed-use tower near Sarajevo’s Hotel Holiday is being developed by Palace Investments, owned by Swiss-registered PET Engineering. The start of construction has yet to be confirmed.
Green City, a mixed-use complex consisting of four distinct buildings.
The investor is Teloptic, which owns the Milkos dairy facility. Although the use will be mostly residential, the fourth and lowest building will serve a commercial purpose, most likely as office space.
IT park in Šip, Sarajevo, a greenfield development, is supported by the Centar Municipality.
It gained traction after the Croatian firm Infobip signed a EUR250,000 contract to buy the 4,230 m2 of land on which they plan to construct two mixed-use office and residential buildings with approximately 8,500 m2 Gross Building Area (GBA).
Businesses in Bosnia and Herzegovina are growing, because of the increased amount of investors and interested parties to invest.