Estimation of the Housing Price Index in Bosnia and Herzegovina

This paper utilizes Rosen's hedonic model to construct housing price indexes (HPI) for municipalities across Bosnia and Herzegovina. Utilizing data from an online market platform on owners’ estimated property prices covering the years 2016 and 2017, our analysis reveals that urban municipalities tend to exhibit higher property values compared to densely populated areas. The empirical findings also show that properties constructed during the 1990s tend to be priced lower, likely reflecting the impact of wartime disruptions on construction quality. These findings offer valuable insights into housing market dynamics and can serve as guidance for policymakers and real estate professionals in their decision-making processes.