Bosnia and Herzegovina signed an agreement to join the European Union in 2015. Since 2022, it has officially become a candidate for membership, which means investors have the opportunity to invest in real estate in new buildings in Bosnia and Herzegovina at local prices and sell it at European prices.
Features of buying new real estate from a developer in Bosnia and Herzegovina
Foreigners can freely purchase real estate in Bosnia and Herzegovina from developer if there is a reciprocity agreement between their country and BiH. This means that if a citizen of BiH can buy an apartment in your country, then you can also buy an object in his country.
First, a preliminary agreement (rezervacija) is signed, fixing the price and conditions. Then - the main purchase and sale agreement (ugovor o kupoprodaji), which is certified by a notary. All documents are in Bosnian, Serbian or Croatian, translation is required for foreigners.
Advantages of new buildings in Bosnia and Herzegovina:
- Affordable prices. The average cost per square meter in new buildings is 30-50% lower than in neighboring Balkans.
- Payment terms. 60-70% of developers offer installments for 1-5 years. A typical example: 30% down payment, the remainder is divided into 12-60 months, often without interest.
- Residence permit through purchase. Buying real estate of any value gives the right to a temporary residence permit (boravišna dozvola) for 12 months with annual renewal, but without the right to work.
Real estate prices in new construction real estate in Bosnia and Herzegovina
Prices for new real estate in Bosnia and Herzegovina at the foundation stage are 20-30% lower than the final cost when buying a finished property. But there are certain risks here, since the country is on the verge of joining the EU, and by the end of construction, your right to own the property may be revised.
Average cost of new housing in Bosnia and Herzegovina from the developer:
| City | Property type |
Average price per sq.m. (€) |
| Sarajevo | Apartments in new buildings | 1500–2000 |
| Banja Luka | Apartments and houses | 1200–1800 |
| Mostar | Apartments in the historical center | 1100–1600 |
| Tuzla | Compact apartments | 800–1400 |
Popular cities in Bosnia and Herzegovina for purchasing real estate from the developer
Developers in Bosnia and Herzegovina mainly develop land funds in large cities, and the largest of them is Sarajevo, the capital and business center of the country. The city is ideal for those looking for new housing in Bosnia and Herzegovina for living or renting out, although prices here are on average 20–40% higher than in the rest of the country.
Other popular cities:
- Banja Luka. A large city in the north of the country. There is the University of Banja Luka, health and clinical centers, natural areas near the Vrbas River.
- Mostar. The fifth largest city and the historical capital of Herzegovina. There is the highest demand for housing from tourists due to the proximity to the Adriatic Sea
- Tuzla. The third largest city in the country and its industrial center. The tourist flow is low, its basis is health resorts with salt lakes. But the main feature is the relatively low cost of real estate (from €900 per square meter).
