1

Research and Forecast Report | Colliers

H1 2019 | Slovenia
BOSNIA AND
HERZEGOVINA
Market Overview
2020
RESEARCH AND FORECAST REPORT
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CONTENT
Research and Forecast Report | Colliers
2020 | Bosnia and Herzegovina

Summary 3

Economic Overview 4

HTL Market 6

Office Market 8

Retail Market 10

Industrial and Logistics Market 12

Investment Market 14

Residential Market 15

About Colliers 17
 3

SUMMARY

Research and Forecast Report | Colliers

2020 | Bosnia and Herzegovina
Recent trends Market Forecast
The past year has been marked by the The HTL sector is seen regaining
onset of COVID-19, which brought along momentum, with first signs of recovery
an economic downturn, primarily due to visible as early as 2021, dependent on the
travel restrictions and a slump in consumer normalisation of international travel and
spending. The HTL sector, which had seen influx of tourist arrivals.
increased investor and developer interest
When considering the office sector, several
in the previous years, experienced the
years ago, the tenants were in a weaker
brunt of these implications brought about
bargaining position and had to accept the
by the rise of uncertainties in the sector.
landlords’ requirements due to low vacancy
Although there are still ongoing
rates. Nowadays, the bargaining power is
developments, several have been put on
on the tenants’ side. The stock is expected
hold or delayed opening until satisfactory
to moderately increase due to several new
market conditions are met.
announced projects. The office stock is
Office sector which had also seen a large expected to remain concentrated in
number of recent developments fared Sarajevo.
similarly, with larger developments being
The retail sector’s development hinges on
on hold. However, several build-to-suit
the economic recovery and consequent
projects, with perspective owner-occupiers
increased consumer spending, while the
from the IT sector have continued with
recent expansion of e-commerce
minimal obstructions.
presenting both new competition and
Retail sector has seen several new internal need to supplement existing
openings in 2020, despite the lockdown offering of brick and mortar concepts.
measures implemented in March and
With industrial production gaining
lasting into May. The mid-term position of
momentum despite the surrounding
the retail sector is highly dependent on the
economic uncertainties, there have been
country’s economy managing to overcome
several new developments in the industrial
the significant hurdles that were present
sector, both under construction and in the
before and only exacerbated by the
pipeline, with demand coming from both
pandemic. E-commerce has seen a
domestic and foreign investors, which
significant rise in prominence and
indicates positive outlook for the sector.
availability, the impact of which is yet to be
seen, as the consumer habits change over Development activity will remain the
time. strongest in the residential sector due to
the highest demand and highest developer
Industrial and logistics sector has seen a
profit margins in this sector. The demand
turnaround, as these properties witnessed
and prices should remain stable in biggest
increased demand, being seen as less
cities, subject to quick economic recovery
dependent on economic growth.
in 2021.
Residential real estate sector was again
the most active sector in terms of
development and liquidity. Due to strong
demand, apartment prices recorded a
slight upward trend.
4

ECONOMIC OVERVIEW
Research and Forecast Report | Colliers
2020 | Bosnia and Herzegovina

Summary B3 (stable) grade from July 2012 and S&P B

Economic conditions have deteriorated (stable) grade from April 2020.
rapidly as a result of the COVID-19 crisis. Forecast
According to the Agency for statistics of
According to Oxford Economics the GDP is
Bosnia and Herzegovina, GDP dropped
expected to contract 5.4% in 2020 and pick
by 6.3% y-o-y in Q3 2020. Government
up to 3.3% in 2021, and 7.0% in 2022,
support, although announced relatively
subject to the post-pandemic global
early in the crisis has been weak in
economic recovery.
comparison to measures seen in
developed Europe. Grants and It is expected that a $900 million IMF
concessional loans totalling over $700 package will be agreed, but political risks in
million from the EU, IMF and World Bank meeting the economic and reform targets
will help the government to deal with the mean there is a degree of caution as to the
economic fallout from the crisis, but the completion of the programme.
limited scale of the measures will Severe downturns in the county’s main
contribute to a 4.4% fall in consumer export destinations (the Balkans, Germany
spending now seen in 2020 A and Italy) will see exports fall by 16% this
government budget deficit is seen rising year, but a bounce-back to growth of 6% and
to 5.7% of GDP in 2020, but this will 11% is expected in 2021 and 2022
return to the previously seen surplus over respectively, as partner countries recover
the next decade. and tourism flows can begin to resume.
Bosnia and Herzegovina has been a Bosnia and Herzegovina's top economic
"potential candidate country" for goals remain: acceleration of integration into
European Union (EU) accession since the EU; strengthening the fiscal system;
2003, and the progress has been slow. public administration reform; World Trade
In April 2020, unemployment started to Organization membership; and securing
rise significantly as a result of the economic growth by fostering a dynamic,
economic impact of COVID 19. competitive private sector.
Unemployment, especially among the
youth, remains very high (>40%), with
registered unemployment rate as of
October 2020 at 33.9%.

The convertible mark - the national

currency introduced in 1998 - is pegged
to the euro through a currency board
arrangement, which has maintained
confidence in the currency and has
facilitated reliable trade links with
European partners.

Credit risks remained fairly high due to

continued reliance on multilateral lenders
and dysfunctional policy on government
finances. Bosnia and Herzegovina holds
a non-investment grade from two major
credit agencies, with Moody’s holding a
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Research and Forecast Report | Colliers

2020 | Bosnia and Herzegovina
Figure 1: 8.0% 40.0

6.0% 35.0
GDP GROWTH, INFLATION,
UNEMPLOYMENT; RATES AND 30.0

Unemployment (%)
4.0%
FORECASTS

GDP & Inflation

25.0
2.0%
20.0
0.0%
15.0
2.0%
10.0
4.0% 5.0

6.0% 0.0

CPI inflation (%) (lhs)

GDP, real (annual variation in %, y/y) (lhs)
Unemployment rate (%) (rhs)

Figure 2: €8.0 bn
6.9
EXPORTS OF GOODS AND €7.0 bn 6.3 6.3
SERVICES 5.8 5.6
€6.0 bn
4.9
€5.0 bn

€4.0 bn

€3.0 bn

€2.0 bn 2.6
2.3 2.3 2.2 2.4
€1.0 bn 1.9

€0.0 bn

Exports of goods ($ bn) Exports of services ($ bn)

Figure 3:

AVERAGE GROSS EARNINGS

(€/month)

758
725
696
674
658 658 664

2014 2015 2016 2017 2018 2019 2020 (10)

Sources: Figure 1: Oxford Economics | Figure 2: Oxford Economics | Figure 3: Agency for Statistics of BiH
6

HTL MARKET
Research and Forecast Report | Colliers
2020 | Bosnia and Herzegovina

Summary 182-room hotel was reconstructed on the

It is expected that the total arrivals and location of former Hotel Ruža.
overnights in 2020 will be at only 20% of  Hotel Vidikovac is nearing completion on
the 2019 level. Domestic tourists were Trebević Mountain overlooking Sarajevo.
most numerous in arrivals and overnights, The hotel should open in April 2021 and
due to the imposed travel restrictions, as consist of 30+ rooms. Total investment is
international travel was severely impeded. estimated at €2.5m.

Most hotels are still unbranded, although  The historic Hotel Neretva built in 1892 in
recent years have witnessed the arrival of Mostar, is currently being reconstructed
international hotel brands. Currently, and will consist of 83 units, set to open in
approx. 70% of the hotel market is made up summer 2021. The investment is
of independent hotels, with a 52% share of estimated to be around €8.7 million.
the hotel keys. Chain hotels make up 30% Pipeline
of the market, with a 48% share of the hotel
 5* Hilton hotel with 56 keys has been in
keys. Hotel operators experienced strong
development since 2016 in Sarajevo,
performance drop in 2020. The most
developed by KOL, owned by Turkish
noticeable temporary closures in 2020 due
businessman Fatih Kol. Construction
to COVID-19 are Bosmal Arjaan by Rotana
was halted due to administrative issues.
and Novotel Sarajevo Bristol.
 Congress Centre Sarajevo, a 5* hotel
Forecast with 334 accommodation units, along
Gradual sector recovery should start in with retail and office segments. The
2021. In the long term, the epidemic is project is on hold due to the legal issues.
unlikely to be a catalyst for a significant Investment is estimated at €150-200 m.
structural change.
 Hifa Oil announced the construction of a
2020 significant openings: hotel near Sarajevo Airport on an 8,500
Hotel Monti (O3), 15 km from Sarajevo, m2 plot.
replaced the old hotel Feri, located on
 Hotel Nomad is announced to be
Igman Mountain. The new hotel has 65
developed on the Bjelašnica Mountain,
accommodation units with 145 beds. The
consisting of 51 rooms and 60
construction started in April 2018. The
apartments. The investment is financed
investor is Sunnyland group whose owner
by EBRD. Completion is expected in
is sheik Mohammed al Qasimi from UAE.
2022.
Tehnograd Tuzla hotel opened a new
 Legend invested €10 million in Snježna
boutique hotel Vertigos with 17 units in
Dolina Tourist resort on Jahorina,
September 2020.
comprising 175 units over 17,000 m2.
Under construction  Galens Invest announced the
 Construction of a hotel has commenced reconstruction of Hotel Jahorina, bought
in Magribija Street in Marijin Dvor district, in a joint venture with Pavgord. The
Sarajevo in Q1 2020. opening is envisioned in July 2022. The
investment is estimated at €15 million.
 Mariott was set to open its first 4.5* hotel
in Mostar in spring 2020, delayed due to
the onset of the COVID-19 epidemic. The
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Research and Forecast Report | Colliers

2020 | Bosnia and Herzegovina
Figure 4: 4,000,000

3,500,000
TOURIST ARRIVALS &
OVERNIGHTS IN BOSNIA AND 3,000,000
HERZEGOVINA
2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Arrivals Overnights

Figure 5:

NUMBER OF PASSENGERS AT
SARAJEVO AIRPORT 200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0

2019 2020

Figure 6: 600 8

HOTEL OPENINGS IN 7
500
SARAJEVO (4* AND 5*
HOTELS) 6
400
5

300 4

3
200
2
100
1

0 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

No. of accommodation units No. of openings

Sources: Figure 4: Agency for Statistics of BiH | Figure 5: Sarajevo Airport Statistics | Figure 6: Federal Ministry of Tourism and Environment
8

OFFICE MARKET
Research and Forecast Report | Colliers
2020 | Bosnia and Herzegovina

Supply The total net area of the new office

Sarajevo is the most developed office building which will feature office
market in BiH due to businesses, premises, cinema, gym, closed pool and
governmental and non-governmental conference facilities is 4,660 m², while the
organisations, as well as international investment is estimated at €4.1m.
companies, basing their offices in the Envisioned opening is in Q1 2021.
capital. The remaining stock is located in  Ećo Company, a local furniture company
major cities like Banja Luka (the capital of is developing a new headquarter in Stup
Republika Srpska entity), Zenica, Tuzla, district in west Sarajevo. The building is
Bijeljina and Mostar, all of which have more under construction and will feature a
than 100,000 residents. furniture store on the first three floors,
Current office class ‘A’ and class ‘B’ stock while the remaining four floor will be used
in Sarajevo amounts to around 100,000 m² as office premises for Ećo company. The
leasable office area. Of this, class ‘A’ office investment is estimated at €3 million.
space accounts for 70% and class ‘B’ for  Croatian IT company, Infobip, will move
the remaining 30%. from Avaz Tower to their new
Demand headquarters in Šip district in north
New demand mostly comes from Sarajevo. Infobip acquired a 4,230 m²
companies in the ICT sector, professional land plot form the local municipality for
services and recently the medical and €250,000 and is planning to develop a
pharmaceutical sectors. Other tenants from campus object with of 8,500 m² net area
sectors that fared worse during the for 500 employees. The campus will have
pandemic were in need of rent concessions similar facilities as the two in Croatia, the
and rent free periods from their tenants in completed campus in Vodnjan and the
order to remain as occupiers for the under construction campus in Zagreb.
duration of their leases. The start of construction is expected in
mid-2021 with completion in 2022.
The pandemic has been responsible for an
increase of work from home practices that  Al Jazeera Balkans, a Qatari media
were not largely present in the market. This company, will move from BBI Centar to
may reduce the demand for office space, Šip district in north Sarajevo. The
as tenants will not require as much office company is developing a new
space in the future, while the demand for headquarter building which will have
flexible office space will likely increase. 7,500 m² net area and feature 3 TV
Rents and Vacancy Rate studios. The building was supposed to be
completed by November 2021, however
New office developments and tenants
the COVID-19 outbreak has halted the
foregoing their leases had an upward
investment and it is not known when it
pressure on rental rates that added to the
should continue.
vacancies that lingered from the global
financial crisis. Current vacancy in  R Tower (formerly Avaz Ski Tower)
Sarajevo office market is estimated at 30%. received a green light with the adoption of
Urban Project “Centrotrans” Alhos Phase
Pipeline
I, next to the I. transversal and the
 Symphony Group, local IT company, will
existing Avaz Twist Tower. The project
move from Sarajevo City Centre to their
envisions a 181 m tall, 30,406 m2 GFA
new headquarters on Trebević mountain.
building. The project is currently on hold.
 9

Research and Forecast Report | Colliers

2020 | Bosnia and Herzegovina
Figure 7:
SARAJEVO OFFICE MARKET
KEY OFFICE MARKET
FIGURES 2019 (NET Total stock in m2 120,000
EFFECTIVE RENTS) Average Class A Monthly Rent €14 - 18/m²
Average Class B Monthly Rent €6 – 14/m²

Figure 8: Year Surface (m2) Y-O-Y

2019 55,122 57%

COMPLETED OFFICE
BUILDINGS IN BOSNIA AND 2018 35,116 128%
HERZEGOVINA PER ANNUM
2017 15,399 -64%
(IN SQUARE METRES)
2016 42,699 30%
2015 32,810 -39%

Figure 9: 120,000 m²

COMPARISON OF COMPLETED 100,000 m²

NON-RESIDENTIAL BUILDINGS
BY SEGMENTS
80,000 m²

60,000 m²

40,000 m²

20,000 m²

0 m²
Hotels and Office Retail Industrial and
similar warehouse
2018 2019

Sources: Figure 7: Colliers | Figure 8: Agency for Statistics of BiH | Figure 9: Agency for Statistics of BiH Statistics
10

RETAIL MARKET
Research and Forecast Report | Colliers
2020 | Bosnia and Herzegovina

General Overview basis only. Some landlords implemented

In lieu of the pandemic, retail sales were rent deferrals. Food retailers showed
seen dropping drastically due to resilience and perform better. The monthly
government mandated restrictions. weighted average rent ranges from €10 to
Convenience retail as essential goods €25/m². In addition to base rent some
providers were less impacted by those tenants (usually the anchor tenants) pay
measures. Discretionary shopping was the turnover rent.
however impeded and showed severe Significant openings in 2020
drop in performance. Tenants received
 The newest addition to Sarajevo retail
rent reductions and exemptions in order
market is Bingo shopping mall, opened in
to bridge the gap in revenues due to
September 2020. It is one of the largest
mandate closures. This however left the
Bingo retail objects with a total of 21,600
landlords in a weakened position, both
m² above ground retail area and 17,400
due to reduced revenue streams and
m² underground garage area.
potential vacancy increases, as
inevitably some tenants would face  Robot opened a 6,000 m2 shopping
foreclosures. centre in Doboj in March 2020.

Supply and Demand  Belamonix shopping centre in Šamac

worth an estimated €2.8 million opened in
Modern shopping centre stock is located
November 2020.
in the larger cities of Bosnia and
Herzegovina, with most of the stock Pipeline
being located in Sarajevo. Contemporary  Serbian developer Delta announced the
shopping mall stock amounts to approx. construction of the largest shopping
106,300 m² what translates into 350 m² centre in BiH and acquired a 6ha plot in
per 1,000 capita what is smaller than SC Stup, Sarajevo. The investment is
stock per capita in neighbouring estimated at €80 million.
countries like Croatia. On-line
 Sarajevo Tower, the biggest mixed-use
penetration and uncertainty about future
mostly residential project in BiH, will have
employment will have a further negative
a retail component for serving the
impact on brick and mortar retail sales.
everyday needs of the population.
We expect new market arrivals especially
 NOA Group plans to develop a 220 unit
from food and fashion retailers. German
5* hotel, 45,000 m2 shopping mall and
retailer Lidl is announced to enter the
residential units encompassing 37,000
market in 2022.
m2 in Nedžarići, Sarajevo. Investment is
Rents and Vacancy Rate estimated at €90 m. Construction is
According to our market research the expected to start in 2022 after
average vacancy rate in the modern demolitions in 2021.
shopping malls is up to 5%, while in  Buroj Ozone: a shopping mall (Zayed
other malls it is much higher. Sarajevo Mall with 93,000 m²) is envisioned as part
suffered from high vacancy rates for of tourist city in Trnovo, 20 km from
years, but it has dipped in the past few Sarajevo. Project is currently on hold.
years. However, we expect a downward
 Bauhaus big-box centre construction in
pressure on rents due to retailer failures.
Sarajevo was planned to start in 2017 is
Retailers push for shorter lease
still on hold.
agreements that are on turnover rent
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Research and Forecast Report | Colliers

2020 | Bosnia and Herzegovina
Figure 10:
SARAJEVO SHOPPING CENTRE MARKET
KEY MODERN SHOPPING
CENTRE MARKET FIGURES, Total modern stock (approx.) 150,000 m²
2020 Prime SC Vacancy rate 5.0%
Prime Weighted Average Monthly Rent €10.0 – 25.0/m²

Figure 11: 240,000 1,000

200,000
SHOPPING CENTRE STOCK 800
PER CAPITA IN MAJOR 160,000
CITIES OF BOSNIA AND 600
HERZEGOVINA 120,000
400
80,000

200
40,000

0 0

GFA (m²) Shopping Centre stock m²/capita (right side)

Figure 12: 120,000 m²

COMPARISON OF
100,000 m²
COMPLETED NON-
RESIDENTIAL BUILDINGS BY 80,000 m²
SEGMENTS
60,000 m²

40,000 m²

20,000 m²

0 m²
Hotels and similar Office Retail Industrial and
warehouse
2018 2019

Sources: Figure 10: Colliers | Figure 11: Agency for Statistics of BiH | Figure 12: Agency for Statistics of BiH
12

INDUSTRIAL AND LOGISTICS MARKET

Research and Forecast Report | Colliers
2020 | Bosnia and Herzegovina

Supply and Demand Landlord positive conditions still

Currently the least developed sector, the dominate, so while the economic outlook
Industrial and Logistics sector is taking is very difficult, there is limited
the brunt of the decreased industrial expectation of any decline in demand that
production and consequential decrease would generate negative rental pressure.
in export of goods. New developments Under construction
stem primarily in the form of owner-  Boxmark Leather started construction in
occupied facilities which are built-to-suit. November 2020 on the first 7,500 m2 part
The current supply consists of older of a 22,500 m2 factory in Lukavac near
properties, industrial remnants from the Tuzla, totalling 22,500 m2. The first part is
former state, modernized to varying planned to be finished by April 2021,
degrees, some of which are still on the while the second is planned to be finished
market as prospective brownfield by the end of 2021.
developments.
 Mann+Hummel 6,090 m2 logistics centre
Demand is coming from domestic and
in Tešanj started construction in 2020.
foreign companies, focused primarily on
Investment is estimated at €4.3 million.
production and manufacturing facilities
and less in dedicated logistics properties.  In December 2020, developer Skuter
Most developments in the sector are started construction of an LDC in Blažuj.
oriented towards build-to-suit facilities. Building NLA is estimated at 5,700 m 2
The industrial and logistics sector has and the investment is worth approx. €2.5
little incentive to invest in new facilities million. Completion is expected in Q4
due to decreased industrial production 2021.
and export of goods. Further demand will  Croatian post Mostar is building a new
stem mostly from existing companies 7,000 m2 logistics centre in Bišće Polje.
expanding their facilities or moving into Investment is estimated at €3.5 million.
newly constructed owner-occupied
 In June 2020, Meridian started
premises. Finishing construction of the
construction of a freight terminal in Banja
A1 highway on the Vc corridor is crucial
Luka, a 6,421 m2 LDC on a 32,500 m2
for further sector development, especially
plot. The investment is worth €5 million.
in terms of logistics providers.
2020 significant openings  In June 2020, Podravka started
construction of a fruit processing plant in
 Roundliner opened a PVC packaging
Kruševo near Mostar, planned to be
factory in Prijedor, Celpak industrial zone
completed by the end of 2021.
on a 12,000 m2 land plot.
 TMD Group started construction of €1.6
 Interlogistic opened a 1,200 m2
million plant in Gradačac, set to open in
distribution centre in June 2020.
June 2021. This is an extension of the
Investment was worth €600,000.
existing €5 million plant opened in 2018.
Forecast
Pipeline
In relations to COVID-19 outbreak, there
 Braća Pivac meat producer announced
has been an increase in demand and
construction of a 20,000 m2 facility in
requirements from companies in the
Mostarska Vrata, Cerno business zone.
grocery, omni-channel and pharma
related product fields. Distribution needs  Disk Zivinice plans to open a €7.7 million
are positive and likely to drive growth. polyurethane factory in Zivinice by 2022.
 13

Research and Forecast Report | Colliers

2020 | Bosnia and Herzegovina
Figure 13:
120,000 m²
COMPLETED INDUSTRIAL
BUILDINGS AND
WAREHOUSES IN THE PAST 100,000 m²
DECADE (2009 – 2019)
80,000 m²

60,000 m²

40,000 m²

20,000 m²

0 m²
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Figure 14: 8.0% 7.0

6.0% 3.3
INDUSTRIAL PRODUCTION 3.2
4.0% 2.4
AND ECONOMIC GROWTH
2.0% 4.5
2.7
0.0% 1.9
-1.8
-2.0%
-4.6
-4.0%
-6.0%
-8.0% -5.7

GDP, real (annual variation in %, y/y)

Industrial production index (2015=100, %)

Figure 15:
Surface of completed non-residential buildings
COMPARISON OF comparison
COMPLETED NON- 120,000 m²
RESIDENTIAL BUILDINGS BY
100,000 m²
SEGMENTS
80,000 m²
60,000 m²
40,000 m²
20,000 m²
0 m²
Hotels and Office Retail Industrial and
similar warehouse

2018 2019

Sources: Figure 13: Agency for Statistics of BiH | Figure 14: Agency for Statistics of BiH; BiH Economic planning Directory | Figure 15: Agency for Statistics of BiH
14

INVESTMENT MARKET
Research and Forecast Report | Colliers
2020 | Bosnia and Herzegovina

Summary store acquired in 2019 for €1.7 million.

The transactional activity remained low  Hotel Muska Voda on Konjuh Mountain
mostly as a result of economic near Tuzla consisting of 24 hotel units, 12
uncertainties and shortage of good product apartments, bungalows and a restaurant
on sale. Existing stock might appear on the was sold in May 2020 for approx.
market, especially in the HTL sector, as €715,000 (approx. €20,000 per unit)
assets become distressed due to defaults.
 Cromex bought a 60,000 m2 production
Hotels Hayat and Alem in Sarajevo have facility in Prijedor which belonged to a
already been put on sale, offered at €2.25 bankrupt food and beverages wholesaler
and €1.45 million, respectively, as well as Velepromet.
several smaller HTL properties
Opportunities
The market continues to lack transparency,
 The bankrupt Vita-Life opened a tender
making yield evidence hard to obtain. One
for the sale of real estate assets worth an
of the reasons is that market development
estimated €2.5 million, with the first
in terms of new stock only begun in recent
auction held in October 2020.
years.
 Bingo plans to launch a buyout bid for the
Top transactions in 2020
rest of the TP DC Sarajevo logistics park
 The 56 unit Hotel Blanca Resort and Spa in Rajlovac, after acquiring a 43% stake
in Travnik was sold for €4.9 million in the property.
(€87,500/key) to BMK Invest (local
entrepreneur Mujo Selimović) by Stanovi
Forecast
Jadran from Split in February 2020. We believe that investment transaction
activity will increase once the economic
 ZTC Banja Vrućica purchased the 150
uncertainties concerning the COVID-19
unit Bistrica Hotel at Jahorina in
subside and quality stock comes to market,
September 2020 from Batagon, who
i.e. once the current owners decide to exit
gave up plans to reconstruct the hotel
the investment, with new investors drawn
they purchased in November 2019 for
by attractive yields.
€3.1 million (approx. €21,000/unit).
Opportunities may also arise in case of
 Brokerino purchased the Agrokomerc
further privatisation of the government
office building in Velika Kladuša,
owned properties or NPL portfolio
furthering its investment portfolio upon
offerings.
purchasing the Agrokomerc department

Figure 16:
487
FOREIGN DIRECT 415
436
INVESTMENT IN BOSNIA
357 357
AND HERZEGOVINA (IN 326 316
307 307
MILLION €)
208
183

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
(6)

Source: Figure 16: Foreign Investment Promotion Agency of Bosnia and Herzegovina
 15

RESIDENTIAL MARKET

Research and Forecast Report | Colliers

2020 | Bosnia and Herzegovina
Supply Under construction
In the period from 2012 to 2019, on  Sarajevo Tower, currently under
average around 2,780 new dwellings were construction, is located in Pofalići
completed annually, with an average of settlement in Sarajevo. The 26 floor
154,000 m² useful surface completed building will include residential and
annually. Average useful surface of commercial premises. Total GBA will
completed new dwelling in observed period amount to around 80,000 m² and will
was around 55 m². include around 400 apartments and 600
parking places, along with a retail
Most of the developers are domestic
segment. Completion was expected in H1
construction companies. Foreign
2020, but it has since been on hold.
developers are mainly present in Sarajevo.
Pipeline
Currently there are around 2,900
 R Tower project envisions development
advertised apartments for sale in Sarajevo
of a 40-floor tower with a hotel,
on leading ads website. Around 28% are
commercial premises and apartments.
located in Sarajevo – Centar city district,
Urban plan has been adopted in January
with 20% in Ilidža and Novi Grad districts,
2020, which opened the door to the
respectively. Asking prices range from
construction of a new tower. Planned
€1,000 to €1,800 per m2, depending on
location is next to Avaz Twist Tower.
various factors (location, quality, surface
etc.).  Green city project comprises 777
apartments and 938 garage parking
Demand
spaces, as well as a commercial
The demand is highest for new-build
segment. Approval of the urban project
apartments in the more desirable areas
was adopted in December 2019.
such as Marijin Dvor, Čobanija, Centar and
Compared to the original solution, the
Skenderija in the Canton center,
number of floors was reduced from 26 to
comprising mostly middle to high-density
a maximum of 15 floors. Start of
apartment buildings, along with Višnjik,
construction has been announced for H1
Breka, Koševo and Vrtovi sunca on the
2020.
northern slopes of Sarajevo. Ilidža is an
emerging top district west of Sarajevo.  Mixed-use project in Novo Sarajevo,
Grbavica, on a 2,410 m2 land plot,
Majority of demand comes from local
consisting of 9,300 m2 GBA, out of 5,350
population buying apartments for their
m2 will be used for 72 apartments and 12
primary residence. The foreign buyers are
commercial premises, while the rest will
focused on high-end projects in Sarajevo.
be comprised of an 88 parking space
Average transaction prices are usually in garage. Investment is estimated to be
range of €900 to €1,200 per m2, depending around €6.2 million.
on various factors (location, quality, surface
etc.).
The demand and prices should remain
stable in biggest cities, subject to quick
economic recovery in 2021.
16
Research and Forecast Report | Colliers
2020 | Bosnia and Herzegovina

Figure 17:

COMPLETED DWELLINGS Number od

Useful area
AND USEFUL SURFACE (m²), Year completed Y-O-Y
m²
Y-O-Y
dwellings
BIH, PERIOD 2015-2019
2019 3,020 1% 172,574 -6%
2018 2,985 0% 183,718 13%
2017 2,987 8% 161,891 4%
2016 2,766 29% 156,089 31%
2015 2,150 -24% 118,708 -24%

Figure 18: 700 € 1,200

VOLUMES AND AVERAGE 600 € 1,000

PRICES (€/m²) OF SOLD NEW
500
DWELLINGS IN CANTON € 800
SARAJEVO (VAT INCLUDED) 400
€ 600
300
€ 400
200

100 € 200

0 €0

No. of sold new dwellings Average price per m² (€) (rhs)

Figure 19: € 2,000

€ 1,783
€ 1,800 € 1,629
AVERAGE ASKING PRICES
€ 1,600
PER (€/m²), SELECTED € 1,401
€ 1,400 € 1,297
NEIGHBOURHOODS, € 1,225
€ 1,200 € 1,116
SARAJEVO € 1,043
€ 1,000
€ 800
€ 600
€ 400
€ 200
€0

Sources: Figure 17: Federal Bureau of Statistics BiH | Figure 18: Institute for Informatics and Statistics, Canton of Sarajevo | Figure 19: olx.ba
 17

ABOUT COLLIERS

Research and Forecast Report | Colliers

2020 | Bosnia and Herzegovina
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Research and Forecast Report | Colliers
2020 | Bosnia and Herzegovina

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