Sarajevo Adopts a New 20-Year Urban Development Framework, Opening a New Chapter for Investment

The Government of Sarajevo Canton has adopted the Urban Development Plan for Sarajevo Canton for the period until 2036, marking a major milestone in the long-term planning and sustainable development of the Canton. The Plan has now been submitted to the Sarajevo Canton Assembly for final consideration and adoption.

The new framework provides a strategic foundation for the spatial, economic and infrastructure development of Sarajevo over the next two decades. For investors, it represents an important step towards creating a more predictable, structured and investment-ready urban environment, with clearly defined development priorities and areas for future growth.

According to Faruk Muharemović, Director of the Sarajevo Canton Institute for Development Planning, the Plan is the result of a long-term professional and collaborative process involving the Institute, the Government of Sarajevo Canton, the Planning Council, municipalities and other stakeholders.

New Urban Centres and Investment Opportunities

One of the key elements of the new Urban Development Plan is the decentralisation of Sarajevo’s urban and economic growth.

The Plan envisages the development of new urban sub-centres along the corridors towards Novi Grad, Ilidža and Vogošća, creating opportunities for the expansion of business, residential, commercial and public functions beyond the traditionally concentrated areas of Centar and Stari Grad.

This approach is designed to create a more balanced urban structure while opening new locations and development opportunities for domestic and international investors.

Particular importance is also given to the transformation of former industrial areas. Previously underutilised or brownfield sites are planned for redevelopment into modern business and residential districts, cultural facilities and recreational areas, creating significant potential for new investment projects and urban regeneration.

Infrastructure as a Driver of Investment

The Plan places strong emphasis on improving connectivity and sustainable mobility across the Canton.

Future development will focus on expanding public transport, pedestrian and cycling infrastructure, while the road network will be strengthened through the completion of key transversal and longitudinal routes.

Improved connectivity is expected to increase the accessibility of emerging business and residential zones, reduce congestion and support the efficient movement of people and goods across the Sarajevo metropolitan area.

For investors, this means that infrastructure development and spatial planning are being increasingly aligned with the long-term economic growth of Sarajevo.

Protecting Sarajevo’s Most Valuable Natural Assets

At the same time, the new Plan establishes clearer boundaries for construction land and places greater emphasis on protecting Sarajevo’s green areas, river corridors and key natural zones.

Areas such as Betanija, Hum and Stojčevac are identified within the broader effort to preserve the city’s natural assets, improve environmental quality and prevent uncontrolled urban expansion.

This balance between development and environmental protection is an increasingly important element of Sarajevo’s investment proposition, particularly for projects focused on sustainable urban development, green infrastructure, tourism, residential development and quality-of-life investments.

A Long-Term Framework for Investors

Sarajevo’s previous Urban Development Plan covered the period from 1986 to 2016, making the adoption of a new 20-year framework particularly significant for the Canton.

The new Plan provides a long-term vision for how Sarajevo will grow, where development will be concentrated, how infrastructure will evolve and which areas will be protected from uncontrolled construction.

For investors, this represents more than a spatial planning document. It is a strategic framework for the future development of Sarajevo, helping to identify emerging investment areas, guide urban regeneration and support the creation of a more sustainable and competitive city.

With the new framework extending to 2036, Sarajevo is laying the foundations for planned urban growth, stronger infrastructure, new business districts and a more attractive investment environment.


Supported by: Government of Canton Sarajevo