BMI View: The Bosnian commercial real estate sector is in a transition period following the economic recession and downturn in rental rates during 2012-H113. A lack of development and investment means there is potential for long-term growth , and t he country ' s strong potential has not gone unnoticed by international investors looking to explore one of Europe ' s few relatively untapped real estate markets .
With a focus on the three principal cities of Sarajevo, Trebinje and Zenica, the Q314 Bosnia and Herzegovina Real Estate report covers the property fundamentals of the commercial real estate market rental market, and examines the office, retail and industrial segments throughout the country.
A fast-recovering economy is expected to be one of the main drivers of growth in the real estate sector over the next few years, with the country's GDP forecast to expand by 2.1% in 2014. That said, the immediate effect on demand for commercial real estate space is expected to be relatively limited, with the industry still experiencing high levels of oversupply and vacancy rates in much of the country. How the general election scheduled for October 2014 will affect the status of the real estate sector remains to be seen; however, it is feared that the result may ignite tensions between the various ethnic groups, which could upset the country's recent economic growth momentum.
Over the long term we expect Bosnia's property market to benefit from growing interest in Central and Eastern Europe as a whole, with Bosnian real estate attracting interest from investors as far afield as the Middle East. However, much will depend on whether the market continues to enjoy the stability it has shown in recent months and whether this stabilisation translates into growth.
The Bosnia-Herzegovina Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.
BMI's Bosnia-Herzegovina Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Bosnia-Herzegovina.
- Benchmark BMI's independent real estate industry forecasts for Bosnia-Herzegovina to test other views - a key input for successful budgeting and strategic business planning in the Bosnian real estate market.
- Target business opportunities and risks in Bosnia-Herzegovina through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.
Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors.
Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.
Industry Forecast Scenario
Historical data series (2010-2012) and forecasts to end-2018 for the domestic real estate industry and for the local and global finance industry. Indicators include:
Real Estate: Office, retail and industrial real estate yields for all major cities (%); short-term forecasts on minimum and maximum real estate rental prices by sub-sector (US$ per square metre, and local currency per square metre)
Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%)
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$)
Business Environment Rankings
BMI's Real Estate Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (real estate vendors, construction companies and financial investors) in the regional real estate market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.
The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.