Bosnia-Herzegovina Real Estate Report Q4 2011
Includes 3 FREE quarterly updates
Bosnia & Herzegovina has a positive period ahead as it rebounds from the recession from which it emerged at the end of 2010. It has a renewed enthusiasm for business – following neighbour Croatia’s accession into the EU – and a strengthening market for exports which will drive the manufacturing sector, as well as utilities and tourism. The country’s real estate market is more locally influenced that many other Central and Easter European (CEE) countries, and Bosnia needs input and investment from outside to help boost the sector. With that in mind, rental costs for property range across the cities and sub-sectors we monitor, and are currently wavering between growth and decline.
Key opportunities in the real estate market:
Political issues remain the hottest topic for Bosnia. Even if a new power-sharing agreement is reached, we warn that political reforms will remain piecemeal, given that the presidential and parliamentary elections left the political landscape still divided along ethnic lines. The biggest risk from this is that foreign investment – which is needed in the real estate sector – will be put off.
Bosnia & Herzegovina has a positive period ahead as it rebounds from the recession from which it emerged at the end of 2010. It has a renewed enthusiasm for business – following neighbour Croatia’s accession into the EU – and a strengthening market for exports which will drive the manufacturing sector, as well as utilities and tourism. The country’s real estate market is more locally influenced that many other Central and Easter European (CEE) countries, and Bosnia needs input and investment from outside to help boost the sector. With that in mind, rental costs for property range across the cities and sub-sectors we monitor, and are currently wavering between growth and decline.
Key opportunities in the real estate market:
- Revisions of land ownership and construction laws are under way, which will provide the industry with a more comparable legal base from which to operate.
- Projects to improve local welfare and quality of life include the construction of sewage networks, modernisation of various school and local government premises, and numerous planning ideas.
- Improvement of legislation related to foreign investment, including tax incentives and a reduction in bureaucracy. Included are attempts to strengthen the protection of assets, and to encourage freedom in their management and disposal.
- New developments under way include a new shopping centre under construction in an area adjacent to Sarajevo’s airport. The company building it is Airport Centre Sarajevo (ACS LLC), which is owned by the airport (with a 20% share), and by Viennese companies IPD Group and Karimpol Group (with 40% each). The project had stalled throughout the global financial crisis but is now back online and groundwork is under way.
Political issues remain the hottest topic for Bosnia. Even if a new power-sharing agreement is reached, we warn that political reforms will remain piecemeal, given that the presidential and parliamentary elections left the political landscape still divided along ethnic lines. The biggest risk from this is that foreign investment – which is needed in the real estate sector – will be put off.
Contents
Executive SummarySWOT Analysis
Bosnia & Herzegovina Real Estate/Construction SWOT
Bosnia & Herzegovina Economic SWOT
Bosnia & Herzegovina Business Environment SWOT
Real Estate Market Overview
Real Estate Market Analysis
Table: Bosnia & Herzegovina’s Real Estate Market – Rentals, 2010 And 2011 (per m?/month, EUR)
Table: Bosnia & Herzegovina’s Real Estate Market – Net Yields, 2011 And 2012 (%)
Table: Bosnia & Herzegovina’s Real Estate Market – Terms Of Contract/Lease
Industry Forecast Scenario
Real Estate Outlook
Table: Bosnia & Herzegovina’s Real Estate Market – Rentals, 2010-2012 (per m?/month, EUR)
Table: Bosnia & Herzegovina’s Real Estate Market – Forecast Net Yield (%), 2008-2015
Construction And Infrastructure Outlook
Table: Bosnia’s Construction Industry Data And Forecasts, 2007-2015
Table: Bosnia’s Construction Industry Data And Forecasts, 2012-2020
Bosnia’s Macroeconomic Outlook
Table: Bosnia-Herzegovina – Economic Activity, 2008-2015
Business Environment
Table: BMI Business And Operation Risk Ratings
Table: BMI Legal Framework Rating
Table: Labour Force Quality
Table: Emerging Europe – Annual FDI Inflows
Table: Trade And Investment Ratings
Table: Top Export Destinations
Competitive Landscape
Company Profiles
BBI Real Estate
Delta M Group/Delta Real Estate
GP Put d.d. Sarajevo
STRABAG SE
Vranica d.d. Sarajevo
BMI Methodology
How We Generate Our Industry Forecasts
Construction Industry
Bank Lending
Sources Skip to top