Bosnia and Herzegovina’s commercial real estate market has been expanding in recent years. The three largest cities in the nation—Sarajevo, Banja Luka, and Mostar—are primarily where this industry is concentrated. The capital and biggest city, Sarajevo, is the location of many commercial real estate developments, including office buildings, shopping malls, and industrial parks. The second-largest city in the nation, Banja Luka also has a sizeable office building and retail sector, making it a key market in the industry. Even though Mostar is a minor city, it attracts many tourists and has a thriving market with several major projects in the works.
Benefits of commercial real estate
Bosnia and Herzegovina are a desirable market for investment in this industry due to a variety of variables. The nation has a comparatively cheap cost of living, which appeals to companies trying to save operational expenses. Along with having a qualified workforce and a good business climate, it also has a variety of government programs in place to encourage the growth of the industry.
Setting up a commercial real estate business in Bosnia and Herzegovina
The following actions are necessary to launch this business:
Decide on a corporate structure
You have the option of doing business as a corporation, partnership, limited liability company (LLC), or sole proprietorship. You should take into account elements like responsibility, taxes, and administration since every company structure has benefits and drawbacks of its own.
Obtain the required authorizations and licenses
You must apply for a business license and any other required permissions in the nation from the relevant authorities. This can involve a real estate license in addition to any licenses needed to run a company in the area you’ve selected.
Construct a business strategy
You may define objectives, pinpoint your target market, and lay out the actions you’ll take to get there with the aid of a business plan. A precise and well-thought-out strategy must be in place before you launch your company.
Establish a contact network
Finding new customers and properties may be facilitated by developing connections with other experts, including brokers, agents, and property managers. Additionally, you want to think about attending networking functions and area real estate groups.
Promote your company
You must promote your company through a variety of platforms, including social media, internet directories, and local advertising, to draw customers. You have to think about developing an expert website that displays your portfolio and offerings.
Procedures for buying and selling real estate
Typically, the seller’s attorneys will compile all pertinent information about the property and deliver it, along with a draft sale and purchase agreement, to the buyer’s attorneys (contract). Whether the property is undeveloped land, is being built on, or is already constructed, as well as the degree to which property rights have previously been assigned to other parties, will determine the agreement’s structure. The buyer’s attorneys will thoroughly review all legal records of the property as part of their due diligence and will provide their feedback on the proposed sale and purchase agreement. The execution of the agreement can take place once all of the sale and purchase terms and conditions have been agreed to and there are no outstanding disputes between the parties, especially if the purchase was financed with borrowed money. The lender may instruct its attorneys to perform property due diligence. A written sale and purchase agreement involving real property must be signed by both parties, and it is often only one document. For the agreement to be recorded at the Land Registry, the seller’s signature must also be confirmed in front of a Notary Public. The buyer’s attorneys must register the transfer at the Land Registry once the sale and purchase agreement is signed. Transfer taxes must be paid. Upon registration in the Land Registry, ownership passes to the buyer.