Investment Property in Sarajevo

Investment Real Estate in Sarajevo

Sarajevo property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Sarajevo .

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Search Map of Sarajevo Investment Real Estate

Sarajevo ( SARR-ə-YAY-voh; Bosnian: Sarajevo, Bosnian pronunciation: [sǎrajeʋo] (listen); see names in other languages) is the capital and largest city of Bosnia and Herzegovina, with a population of 275,569 in its administrative limits. The Sarajevo metropolitan area including Sarajevo Canton, East Sarajevo and nearby municipalities is home to 555,210 inhabitants. Located within the greater Sarajevo valley of Bosnia, it is surrounded by the Dinaric Alps and situated along the Miljacka River in the heart of the Balkans, a region of Southern Europe.

Sarajevo is the political, financial, social and cultural center of Bosnia and Herzegovina and a prominent center of culture in the Balkans, with region-wide influence in entertainment, media, fashion and the arts. Due to its long history of religious and cultural diversity, Sarajevo is sometimes called the “Jerusalem of Europe” or “Jerusalem of the Balkans”. It is one of only a few major European cities to have a mosque, Catholic church, Orthodox church and synagogue within the same neighborhood. A regional center in education, the city is home to the Balkans’ first institution of tertiary education in the form of an Islamic madrasa, today part of the University of Sarajevo.

Although settlement in the area stretches back to prehistoric times, the modern city arose as an Ottoman stronghold in the 15th century. Sarajevo has attracted international attention several times throughout its history. In 1885, Sarajevo was the first city in Europe and the second city in the world to have a full-time electric tram network running through the city, following San Francisco. In 1914, it was the site of the assassination of Archduke Franz Ferdinand by local Young Bosnia activist Gavrilo Princip that sparked World War I, which also ended Austro-Hungarian rule in Bosnia and resulted in the creation of the Kingdom of Yugoslavia. Later, after World War II, the establishment of the Socialist Republic of Bosnia and Herzegovina within the Second Yugoslavia led to a massive expansion of Sarajevo, then the constituent republic’s capital, which culminated with the hosting of the 1984 Winter Olympics marking a prosperous era for the city. However, after the start of the Yugoslav Wars, for 1,425 days from April 1992 to February 1996, the city suffered the longest siege of a capital city in the history of modern warfare, during the Bosnian War and the breakup of Yugoslavia.

Sarajevo has been undergoing post-war reconstruction, and is the fastest growing city in Bosnia and Herzegovina. The travel guide series Lonely Planet has named Sarajevo as the 43rd best city in the world, and in December 2009, listed Sarajevo as one of the top ten cities to visit in 2010. In 2011, Sarajevo was nominated to be the 2014 European Capital of Culture and in 2019, it hosted the European Youth Olympic Festival. In October 2019, Sarajevo was designated as a UNESCO Creative City for placing culture at the center of its development strategies, and is one of the world’s eighteen Cities of Film.

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The financial stability of Sarajevo has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Sarajevo

Renting out your Sarajevo buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Sarajevo are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Sarajevo and be prepared to change your initial outlook.
Thoroughly research the Sarajevo location with a special emphasis on fringe areas outside the main Sarajevo metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Sarajevo.
Ensure that your target investment property in Sarajevo appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Sarajevo properties yourself is an easy option, but are these savings justifiable when you run into Sarajevo red tape? Physis Realty Sarajevo office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Sarajevo buy-to-rent sector.

With our expert guidance, investing in Sarajevo provides the secure knowledge that your money is working harder than it would in a local Sarajevo bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Sarajevo, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Sarajevo property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Sarajevo

Flipping property in Sarajevo

Flipping property is when we advise clients to buy a Sarajevo property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Sarajevo market has a time to react to the renovation.

The Flipping Strategy in Sarajevo

Investment property flipping in Sarajevo is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Sarajevo real estate investments are sometimes referred to by professionals as ‘distressed’ Sarajevo real estate.

What is distressed Sarajevo property:

Sarajevo property in need of renovation
Sarajevo real estate with a change of purpose and use
Oversold Sarajevo property
Bank repossessions in Sarajevo

Put simply, long term investors in Sarajevo purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Sarajevo investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Sarajevo property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Sarajevo use a minimum profit value of 22% when looking at potential Sarajevo projects. The reason for this is because there are lots that can go wrong in Sarajevo property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Sarajevo

For luxury property investors hoping to add a superb property in Sarajevo to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Sarajevo, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Sarajevo should be entrusted to only the highest-quality agency.

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