2024 Sarajevo Real Estate Market Overview

Generated with sparks and insights from 15 sources

Introduction

Market Value: The residential real estate market in Bosnia and Herzegovina is expected to reach a value of US$107.10 billion in 2024.
Growth Rate: The market is projected to grow at an annual growth rate (CAGR 2024-2028) of 5.38%, resulting in a market volume of US$132.10 billion by 2028.
Economic Factors: The country's stable economic growth, low unemployment rate, and favorable mortgage conditions contribute to increased purchasing power among potential buyers.
Customer Preferences: There is a growing demand for modern, well-designed residential properties with amenities such as parking spaces, balconies, and access to green spaces.
Trends: Increasing popularity of apartment living, especially among young professionals and families, due to affordability and low maintenance.
Special Circumstances: Properties in historic city centers or scenic areas such as mountain resorts and coastal regions are highly sought after.
Macroeconomic Influences: Low interest rates and government incentives, such as tax breaks for first-time homebuyers, are stimulating the real estate market.

Expected Value: The residential real estate market in Bosnia and Herzegovina is projected to reach US$107.10 billion in 2024.
Growth Projection: The market is expected to grow at a CAGR of 5.38% from 2024 to 2028, reaching US$132.10 billion by 2028.
Comparison: In comparison, China is expected to generate the highest value in the real estate market, reaching US$117.40 trillion in 2024.

Stable Growth: Bosnia and Herzegovina's stable economic growth and low unemployment rate have increased purchasing power among potential buyers.
Inflation: Inflation moderated in 2023 but remained above the medium-term target of 2.0%. Further slowdown is expected in 2024.
Office Space: Shortage of Class A office spaces exceeding 1,000 m² leads larger occupiers to opt for build-to-own schemes.
Retail Development: Discount retailers and shopping centers are opening or in development nationwide.
Tourism: The tourism sector is rapidly expanding, with mostly independent and locally-owned hotels.

Modern Design: Customers are increasingly looking for modern and well-designed residential properties.
Amenities: High demand for properties with amenities such as parking spaces, balconies, and access to green spaces.
Energy Efficiency: Growing demand for energy-efficient homes due to increased environmental consciousness.
Apartment Living: Many customers, especially young professionals and families, prefer apartments for their affordability and low maintenance.
Gated Communities: Rise in popularity of gated communities and residential complexes offering amenities like swimming pools, playgrounds, and fitness centers.

Apartment Living: Increasing popularity of apartment living due to affordability and low maintenance.
Urban Areas: Limited availability of land in urban areas makes apartments a practical choice for many buyers.
Gated Communities: Rise of gated communities and residential complexes offering a range of amenities.
Complete Living Experience: Developments with amenities like swimming pools, playgrounds, and fitness centers attract buyers.
Secure Lifestyle: Demand for gated communities driven by the desire for a secure and convenient lifestyle.

Cultural Heritage: Bosnia and Herzegovina's rich cultural heritage attracts interest in properties located in historic city centers.
Scenic Areas: Properties in scenic areas such as mountain resorts and coastal regions are highly sought after.
Premium Prices: Buyers are willing to pay a premium for properties that offer a unique and picturesque setting.
Tourism Influence: The expanding tourism sector increases demand for properties in attractive locations.
Historic Value: Properties with historical significance or unique architectural features are particularly desirable.

Interest Rates: Low interest rates make it easier for individuals to finance their home purchases.
Government Incentives: Various incentives, such as tax breaks for first-time homebuyers, stimulate the real estate market.
Purchasing Power: Stable economic growth and low unemployment rate increase purchasing power among potential buyers.
Mortgage Conditions: Favorable mortgage conditions encourage more people to enter the market and invest in residential properties.
Economic Stability: The country's stable economic environment supports the growth of the real estate market.