Selected Issues Papers

The Real Estate Market in Bosnia and Herzegovina

By Carolina Lopez-Quiles, Adrian Music

September 12, 2025

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Format: Chicago

Carolina Lopez-Quiles, and Adrian Music. "The Real Estate Market in Bosnia and Herzegovina", Selected Issues Papers 2025, 123 (2025), accessed September 12, 2025, https://doi.org/10.5089/9798229025058.018

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Summary

This Selected Issues Paper (SIP) analyzes recent developments in the real estate market in Bosnia and Herzegovina, focusing on housing price dynamics, financial stability implications, and policy responses. Housing prices in Bosnia and Herzegovina have increased sharply in recent years, mirroring trends across the region. Despite significant increases in the House Price Index and strong private credit growth, systemic risks remain contained due to the relatively low share of mortgages in banks’ portfolios and modest household indebtedness. The SIP highlights that systematic monitoring of housing market and credit indicators is necessary to detect vulnerabilities early and ensure a timely and effective policy response to potential real estate market shocks.

Subject: Countercyclical capital buffers, Credit, Deposit rates, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Financial sector stability, Financial services, Housing, Housing prices, Loans, Macroprudential policy, Money, Mortgages, National accounts, Prices, Real estate prices

Keywords: Bank credit, Bank Lending, Bosnia and Herzegovina, Countercyclical capital buffers, Credit, Deposit rates, Financial Risk, Financial sector stability, Fixed Rate Mortgage, Housing, Housing Demand, Housing prices, Housing Prices, Housing Supply, Inflation, Loans, Macroprudential policy, Mortgage, Mortgage Market, Mortgages, Real estate prices, Residential Real Estate

Publication Details

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