Overview of the Report
The article, published by N1 info and authored by journalist Melika Balihodžić, investigates the rapidly rising rental market in Sarajevo, focusing on the challenges faced by students and young professionals. It highlights how increasing tourism and short‑term lettings are displacing long‑term housing, leading to unaffordable rents for local residents.
Rental Price Surge in Sarajevo
Average rental prices for studio apartments in Sarajevo now reach 1 450 KM (approximately €730) per month. Advertisements show two‑room flats priced near 400 000 KM for purchase, while newly renovated units in the Novo Sarajevo municipality exceed 5 500 KM per square metre. Unrenovated flats in the same area rarely fall below 4 500 KM per square metre. Comparable cities show similar pressures: Banja Luka’s average price per square metre exceeds 3 700 KM, Zenica surpasses 3 200 KM, and tourist‑heavy towns average around 4 000 KM.
Market Trends and Drivers
The report attributes the rent hike to a 7 % increase in average apartment prices and an 11 % rise in house prices across the Federation of Bosnia and Herzegovina in the first half of the year. A key driver is the conversion of long‑term student housing into short‑term tourist rentals, amplified by a growing influx of visitors. Real‑estate agents warn that this trend is unlikely to reverse without policy intervention.
Impact on Students and Young Professionals
Students struggle to find affordable accommodation, with studios on the city’s outskirts advertised at 700–800 KM and a 35‑square‑metre unit demanding 1 450 KM. Parents from other regions face limited options for their children commencing studies in September or October. The scarcity of affordable rentals threatens the ability of young people to remain in Sarajevo for education and early career development.
Policy Context and Potential Solutions
The article mentions pending legislation on the return of VAT for first‑time home purchases, which could aid affordability if fully implemented. However, the necessary regulations and procedural documents are still awaiting finalisation, leaving uncertainty about the timing and impact of the measure.
Expert Commentary
Real‑estate agent Haris Kadić notes that renovated apartments in Novo Sarajevo command over five thousand KM per square metre, while unrenovated units remain above four thousand KM. Agency owner Alma Abdagić‑Hadžijahić confirms that many properties previously intended for students are now leased to tourists, further tightening the long‑term rental market.
Implications for Sustainable Housing
The shift toward short‑term tourism rentals reduces the stock of stable, affordable housing, undermining social sustainability in Sarajevo. Persistent price growth may exacerbate urban inequality and hinder the city’s ability to retain a diverse, young population, which is essential for long‑term economic and environmental resilience.