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Residential Real Estate Leases - Bosnia and Herzegovina

Bosnia and Herzegovina

In Bosnia and Herzegovina, the revenue of the Residential Real Estate Leases market market is forecasted to reach US$0.75bn in 2024.
Apartment Leases holds the largest share in this market segment, with a projected market volume of US$0.45bn in 2024.
Looking ahead, the revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 1.80%, leading to a market volume of US$0.82bn by 2029.
The residential real estate lease market in Bosnia and Herzegovina is experiencing a surge in demand due to an increase in foreign investment in the country's property sector.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in Bosnia and Herzegovina has been experiencing significant growth in recent years.

Customer preferences: One of the key reasons for this growth is the increasing demand for rental properties among the population. Many individuals and families are opting to rent rather than buy homes due to various reasons such as financial constraints, flexibility, and changing lifestyles. Additionally, the younger generation, especially millennials, are more inclined towards renting as it allows them to have a more flexible and dynamic lifestyle.

Trends in the market: The increasing demand for rental properties has led to a rise in the number of real estate leasing companies and agents in Bosnia and Herzegovina. These companies are catering to the growing demand by offering a wide range of rental properties, ranging from apartments to houses, in various locations across the country. Moreover, there has been a trend towards the development of modern and well-equipped rental properties that meet the needs and preferences of the tenants.

Local special circumstances: Bosnia and Herzegovina has a unique real estate market characterized by a mix of urban and rural areas. This diversity in the market provides opportunities for both local and international investors. In urban areas, there is a high demand for rental properties due to the concentration of businesses, universities, and other amenities. On the other hand, rural areas offer a more peaceful and affordable living environment, attracting individuals and families who prefer a quieter lifestyle.

Underlying macroeconomic factors: The growth in the Residential Real Estate Leases market in Bosnia and Herzegovina is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth in recent years, which has resulted in increased disposable income among the population. This, in turn, has contributed to the demand for rental properties as people are now able to afford the monthly rental payments. Furthermore, the government has implemented policies to promote the real estate sector, including the Residential Real Estate Leases market. These policies aim to attract both local and foreign investors by offering incentives such as tax breaks and streamlined administrative procedures. As a result, the market has become more attractive for investors, leading to increased supply of rental properties. In conclusion, the Residential Real Estate Leases market in Bosnia and Herzegovina is experiencing significant growth due to the increasing demand for rental properties, the development of modern rental properties, the unique characteristics of the local market, and the underlying macroeconomic factors. The market is expected to continue growing in the coming years as more individuals and families opt for renting rather than buying homes.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.