2023 OVERVIEW AND

2024 OUTLOOK

Bosnia and
Herzegovina
Bosnia and Herzegovina | 2023 Market Overview and 2024 Outlook

Economic Overview
Key figures - BiH
• Forecasted GDP growth for 2024 at 3.0%

Population (UN projection) • Economy continues to be hindered by

3.2 million BiH’s disjointed internal market and
substantial share of informal economy

GDP growth (2023)

• Average net salary in December 2023
amounted to EUR 660 (+9.0% y-o-y
2.0 % nominally or +6.6% y-o-y in real terms)

• Inflation gradually moderated in 2023

Inflation (2023) but remained above medium-term
5.5 % target of 2.0%. Further inflation
slowdown is expected in 2024

• In November 2023, the European

Registered unemployment
(Nov 2023) Commission issued recommendation to
open accession negotiations once
28.7 % necessary membership criteria is met

Economic indicators - actuals and forecast

16.0
%
14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

-2.0

-4.0
2020 2021 2022 2023E 2024F 2025F

GDP growth (%, yoy) Inflation (%, yoy)

Source: International Monetary Fund

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Bosnia and Herzegovina | 2023 Market Overview and 2024 Outlook

Office
Key market figures - Sarajevo
• Shortage of Class A office spaces
exceeding 1,000 m² leads larger
Modern Office Stock (GLA) occupiers to opt for build-to-own
140,000 m² schemes

• Tenants expect office spaces to meet

Vacancy in Class A international standards and follow
trends, with a preference for renovated
15.0 % - 20.0 % or newer premises

• Monthly rents are on average higher in

Prime rents (per m²)
Stari Grad, Centar and Novo Sarajevo
€8.0 - €12.0 compared to Novi Grad and Ilidža

• No major office developments occurred

in Sarajevo in 2023, and pipeline for
City centre rents (per m²)
more extensive projects in the upcoming
€10.0 - €16.0 period remains limited

Completed office surfaces

120
in '000 m2

100

80

60

40

20

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: Agency for Statistics of Bosnia and Herzegovina

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Bosnia and Herzegovina | 2023 Market Overview and 2024 Outlook

Retail
Key market figures - Sarajevo
• Discount retailer Lidl completed
construction of its first facility, but there
Retail Stock (NLA)
is still no information about the opening
150,000 m²
• Retailer Pepco opened its first stores in
the country
Prime retail vacancy
• Most new developments are located in
7.0 % secondary cities, including Zvornik City
Park in Zvornik and shopping center
Belamionix in Tuzla
Monthly WAR (per m²)
€10.0 - €25.0 • Doboj City Mall, comprising 27,000 m²
NLA, should be completed in H2 2024,
marking further expansion of local
player City Mall d.o.o. Bijeljina.
Retail turnover, const. prices
(Dec 2023, y-o-y, BiH) Investment is estimated at around €20.4
million
14.1 %

Modern shopping centre and retail park stock in BIH

240 1,000
in ‘000 m²

200
800

160
600
120
400
80

200
40

0 0

Gross floor area, m² (lhs) Shopping Centre stock m²/capita (rhs)

Source: Colliers research

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Bosnia and Herzegovina | 2023 Market Overview and 2024 Outlook

Industrial & Logistics

Key market figures - Sarajevo
• Supply comprises mainly of older
properties, often modernized to varying
Average Monthly Rent, degrees, with most new developments
newer properties (per m²) focused on build-to-suit facilities
€4.0 - €6.0
• Retailer Bingo has started construction
Average Monthly Rent, of a new 28,000 m² logistics and
older properties (per m²) distribution centre in Tuzla
€2.0 - €4.0 • Retailer Lidl has commenced
construction works on its main logistics
Industrial turnover
and distribution centre for BiH and
(Dec 2023, y-o-y, BiH)
Montenegro in Kiseljak, near Sarajevo
-12.6 %
• Strengthening and modernizing road
and railway infrastructure are essential
Industrial production
(Dec 2023, y-o-y, BiH)
steps for BiH to realize its potential as
logistics hub
-8.0 %

Completed industrial and warehouse surfaces in BiH

140
in '000 m2

120

100

80

60

40

20

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: Agency for Statistics of Bosnia and Herzegovina

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Bosnia and Herzegovina | 2023 Market Overview and 2024 Outlook

HTL
Key market figures - BiH
• Tourism is a rapidly expanding sector,
bolstered by country's appeal as both
Total overnights winter and summer destination
3.6 million • Total tourist activity is likely
(+13.2% y-o-y)
underestimated due to presence of grey
Overnights in Hotels & economy within the tourism market
similar accommodation
• Majority of hotels are independent and
3.4 million locally-owned. Accor, Marriott, and
(+13.9% y-o-y)
Rotana are only major international
hotel companies present in the country
Share of foreign tourists
at the moment
68.3 %
• Anticipated developments include
opening of Hotel Neretva Mostar,
No. of 5* hotels
Tapestry Collection by Hilton in 2025,
14 and completion of Hampton by Hilton
Sarajevo City Center by 2026

Completed hotels & other similar buildings

18 25,000 m²
Annual total surface area
Total number

16

14 20,000 m²

12
15,000 m²
10

8
10,000 m²
6

4 5,000 m²
2

0 0 m²
2016 2017 2018 2019 2020 2021 2022

Number of completed buildings (lhs) Surface area (m²) (rhs)

Source: Agency for Statistics of Bosnia and Herzegovina

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Bosnia and Herzegovina | 2023 Market Overview and 2024 Outlook

Residential
Key market figures - BiH
• Most active property sector in terms of
market activity, development and
New dwellings sold liquidity
4,087 • Besides Sarajevo, the most developed
markets are Mostar and Banja Luka
New dwellings price
growth, y-o-y • 13.3 % y-o-y increase in number of new
6.1 % dwellings sold

• Due to tourism growth, number of

Average new dwelling
price, incl. VAT apartments used for short-term rental is
expected to increase in Sarajevo
€1,330 / m2
• Projects under construction include
No. of new dwellings in residential projects Riverside (Sarajevo)
residential buildings for and Urbani vrtovi (Mostar) as well as
which permits were issued mixed-use development Project C2
10,687 (Mostar)

Volume of completed dwellings in BiH

3,500
Total number

Annual total surface area

180,000 m²
3,000

150,000 m²
2,500

120,000 m²
2,000

1,500 90,000 m²

1,000 60,000 m²

500 30,000 m²

0 0 m²
2018 2019 2020 2021 2022 2023
Number of completed dwellings (lhs) Surface area (m²) (rhs)

Source: Agency for Statistics of Bosnia and Herzegovina

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Bosnia and Herzegovina | 2023 Market Overview and 2024 Outlook

Our services
Colliers offers a comprehensive portfolio of commercial property
services across Croatia, Bosnia and Herzegovina & Slovenia to
occupiers, owners, investors and developers on a local,
regional, national and international basis.

Services include commercial property sales, agency services, real

estate management, property valuation and advisory, real estate
consulting, office space design, project management, property
marketing and market research.

What sets Colliers apart is not what we do, but how we do it.

Colliers 8
Author

Anita Grbavac
Analyst, Valuation & Advisory Services
+385 1 488 6280
anita.grbavac@colliers.com

Colliers Croatia, Slovenia & Bosnia and Herzegovina

Petrinjska 3
10 000 Zagreb
croatia@colliers.com
colliers.com

This report gives information based primarily on Colliers data, which may be helpful in
anticipating trends in the property sector. However, no warranty is given as to the accuracy of,
and no liability for negligence is accepted in relation to, the forecasts, figures or conclusions
contained in this report and they must not be relied on for investment or any other purposes.
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