This website uses cookies so that we can provide you with the best user experience possible. Our Cookie Notice is part of our Privacy Policy and explains in detail how and why we use cookies. To take full advantage of our website, we recommend that you click on “Accept All”. You can change these settings at any time via the button "Update Cookie Preferences" in our Cookie Notice.
Technical cookies are required for the site to function properly, to be legally compliant and secure. Session cookies only last for the duration of your visit and are deleted from your device when you close your internet browser. Persistent cookies, however, remain and continue functioning on repeat visits.
CMS does not use any cookie based Analytics or tracking on our websites; see details here.
Personalisation cookies collect information about your website browsing habits and offer you a personalised user experience based on past visits, your location or browser settings. They also allow you to log in to personalised areas and to access third party tools that may be embedded in our website. Some functionality will not work if you don’t accept these cookies.
The industrial and logistics sector in Bosnia and Herzegovina, although the largest in terms of newly constructed premises, is the least active CRE sector, mostly due to properties being owner constructed and occupied.
The main industrial regions include the capital city – Sarajevo, as well as Mostar, Zenica, Banja Luka, Tuzla and Jajce. Infrastructural investment is crucial to the overall development in this sector. Especially critical is the A1 highway connecting the capital and the major cities of Mostar and Zenica with the northern and southern border of the country.
Recently the I&L market in Bosnia and Herzegovina has witnessed growth in its development pipeline due to increased investments in the industrial sector, in particular manufacturing, energy and steel. During the past 12 months, ca. 50,000 m2 of new modern industrial space was delivered, with a further 9,500 m2 currently under construction.
Demand for industrial and logistic space is comes from both domestic and foreign companies, which invest mostly in production and manufacturing facilities and less in dedicated logistics properties.
Most investments are allocated towards build-to-suit manufacturing facilities in the automobile, furniture, textile and related industries.
In H1 2020, prime rental rates in Bosnia and Herzegovina remained stable and ranged between EUR 4.00-5.00/m2/month.
There is still a large supply of distressed assets, some dating back to the former state era, which are now being privatised and sold off. However, outstanding cadastral and legal issues prolong both the development and sale processes.
Demand might also be dampened by the decrease of industrial production in 2019, specifically caused by a decrease in manufacturing.
Due to the slowdown of industrial production during 2019, domestic investments in the sector might also be lower than in previous years.
Social Media cookies collect information about you sharing information from our website via social media tools, or analytics to understand your browsing between social media tools or our Social Media campaigns and our own websites. We do this to optimise the mix of channels to provide you with our content. Details concerning the tools in use are in our privacy policy.