Sarajevo
Austria-Hungary

Austria-Hungary's occupation of Bosnia and Herzegovina came in 1878 as part of the Treaty of Berlin, and complete annexation followed in 1908, angering the Serbs. Sarajevo was industrialized by Austria-Hungary, who used the city as a testing area for new inventions such as tramways, which were established in 1885 before they were later installed in Vienna. Architects and engineers wanting to help rebuild Sarajevo as a modern European capital rushed to the city. A fire that burned down a large part of the central city area (čaršija) left more room for redevelopment. As a result, the city has a unique blend of the remaining Ottoman city market and contemporary Western architecture. Sarajevo also has some examples of Secession- and Pseudo- Moorish styles that date from this period.

The Austro-Hungarian period was one of great development for the city, as the Western power brought its new acquisition up to the standards of the Victorian age. Various factories and other buildings were built at this time, and a large number of institutions were both Westernized and modernized. For the first time in history, Sarajevo's population began writing in Latin script. For the first time in centuries, the city significantly expanded outside its traditional borders. Much of the city's contemporary central municipality (Centar) was constructed during this period.

Architecture in Sarajevo quickly developed into a wide range of styles and buildings. The Sacred Heart Cathedral, for example, was constructed using elements of neo-gothic and Romanesque architecture. The National Museum, Sarajevo brewery, and City Hall were also constructed during this period. Additionally, Austrian officials made Sarajevo the first city in this part of Europe to have a tramway.

Although the Bosnia Vilayet de jure remained part of the Ottoman Empire, it was de facto governed as an integral part of Austria-Hungary with the Ottomans having no say in its day-to-day governance. This lasted until 1908 when the territory was formally annexed and turned into a condominium, jointly controlled by both Austrian Cisleithania and Hungarian Transleithania.

The event that triggered World War I was the assassination of Archduke Franz Ferdinand of Austria, along with his wife Sophie, Duchess of Hohenberg in Sarajevo on 28 June 1914 by Gavrilo Princip, a Bosnian Serb and self-declared Yugoslav, and member of Young Bosnia. This was followed by the Anti-Serb riots in Sarajevo, which resulted in two deaths and destruction of property.

In the ensuing war, however, most of the Balkan offensives occurred near Belgrade, and Sarajevo largely escaped damage and destruction. Following the war, Bosnia was annexed into the Kingdom of Yugoslavia, and Sarajevo became the capital of the Drina Province.
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