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The research conducted by Poseidon Group and its local partner KSB Group projects a positive outlook for the recovery of the Bosnian real estate sector commencing in Q2 2018. Commissioned in Q4\/2017, the Bosnia-wide analysis shows positive property trends across all classes of real estate in all the country\u2019s major cities from Mostar to Sarajevo and Banja Luka to Tuzla.<\/p>\n
There is demand for grade A office, retail and tourism schemes. Regarding residential property sales, the study shows that quarterly price fluctuation is centred on the Bosnian diaspora. Their early spring and late summer visits see peaks of 10% in prices. Low development activity in secondary cities is influenced by economic and demographic factors. The market is entering a next phase of development in commercial sector with modern schemes opening including SCC Sarajevo, City Center Tuzla, Mepas Mall Mostar, and new construction underway including Delta Planet Banja Luka. Growth trends were noted in the tourism sector, mostly in Sarajevo, Mostar and Tuzla.<\/p>\n
Poseidon Group is a UK-based property investor, developer and asset manager. Present in SE Europe for more than a decade, Poseidon is actively exploring co-investment partnerships in various real estate projects with investors worldwide, so to become a retail market leader in SE Europe by 2020.<\/p>\n
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The Sarajevo<\/strong> residential market has experienced a development boom since 2015, but is expected to slow by 2020. Tourism shows a very positive outlook year-on-year. There is also space for the development of the retail warehousing market. The office market is expecting further expansion with new A-class schemes expected to open in 2018 including the SCC Office Tower.<\/p>\n The residential sector in Banja Luka <\/strong>is in recovery and forecasts steady growth over the next three to five years. The retail market is expected to transform by 2020 with the first modern shopping centre under construction, Delta Planet, that will see the entry of international brands. The office market in Banja Luka is in its infancy, but has seen the construction of the first A class office building, the Agram Tower.<\/p>\n The retail market in Tuzla<\/strong> has just entered a new development cycle with the opening of City Centre Mall in 2017 with international brands. Residential rents are increasing and there is significant demand for summer apartments due to the popularity of the Pannonian Lakes located in the town centre.<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”3.0.89″ background_layout=”light”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”3.0.89″ background_layout=”light”]<\/p>\n Mostar, Bijeljina and Zenica <\/strong><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”3.0.89″ background_layout=”light”]<\/p>\n Key development opportunities in Mostar <\/strong>include office and retail schemes such as the Mepas Mall, but still the market shows demand for further investment. Similarly, in Biljeljina<\/strong> there is high demand for office space due to the increasing number of foreign and private sector companies operating in the town. Bijeljina should win further investments in retail space too. Zenica<\/strong> will see further retail and office space developments.<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”3.0.89″ background_layout=”light”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”3.0.89″ background_layout=”light”]<\/p>\n Bugojno, Travnik, Posu\u0161je and \u0160iroki Brijeg<\/strong><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”3.0.89″ background_layout=”light”]<\/p>\n Due to the poor local economy, demand for any type of property space is low in all four cities. However, Travnik<\/strong> and \u0160iroki Brijeg<\/strong> show investment potential due to their geographical location. Travnik <\/strong>is near one of the largest ski resorts in Bosnia and will soon be connected to the Zenica-Sarajevo highway. \u0160iroki Brijeg <\/strong>differs by its economic potential with higher average salaries showing potential higher demand for residential and retail space.<\/p>\n Poseidon Group Corporate Affairs director James Gunn finds this research to be a guideline for future investors: \u201cThe detailed approach we undertook in building this research brought precise results for specific market segments in BiH. \u00a0We are optimistic about the recovery of the Bosnian real estate over the coming years.\u201d<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”3.0.89″ background_layout=”light”]<\/p>\n Poseidon Group and Bosnian partner KSB Group conducted the analysis of the country\u2019s real estate sector in the last quarter of 2017.<\/strong><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"Secondary cities lack office and retail developments<\/h2>\n
Small cities show upcoming demand for residential and retail development<\/h2>\n