Real Estate - North Macedonia

North Macedonia

The Real Estate market market in North Macedonia is expected to reach a value of US$67.00bn in 2024.
The residential sector dominates the market, with a projected market volume of US$53.09bn in 2024.
It is anticipated that the market will experience an annual growth rate (CAGR 2024-2028) of 4.60%, resulting in a market volume of US$80.21bn by 2028.
In comparison to other countries, China is projected to generate the highest value in the Real Estate market sector, reaching US$135.70tn in 2024.
The real estate market in North Macedonia is experiencing a surge in demand for residential properties due to an increase in foreign investment.

Key regions: United States, China, Japan, Germany, United Kingdom

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Analyst Opinion

The Real Estate market in North Macedonia is currently experiencing significant growth and development.

Customer preferences: In recent years, there has been a growing demand for real estate properties in North Macedonia. This can be attributed to several factors. Firstly, there is an increasing trend of urbanization in the country, with more people moving from rural areas to cities in search of better job opportunities and a higher standard of living. As a result, there is a higher demand for housing in urban areas, particularly in the capital city of Skopje. Furthermore, there is a growing interest from foreign investors in the North Macedonian real estate market. The country's strategic location at the crossroads of Europe and Asia, as well as its relatively low property prices, make it an attractive destination for foreign buyers. This has led to an increase in the number of real estate transactions involving foreign investors, particularly in the commercial and tourism sectors.

Trends in the market: One of the key trends in the North Macedonian real estate market is the development of residential complexes and gated communities. These types of properties offer a range of amenities and services, such as swimming pools, gyms, and 24-hour security, which are highly sought after by buyers. Additionally, these developments often include green spaces and recreational areas, catering to the growing demand for a high-quality living environment. Another trend in the market is the increasing popularity of sustainable and energy-efficient buildings. With growing awareness of environmental issues, there is a demand for properties that are designed and constructed with sustainable materials and energy-saving technologies. Developers are responding to this trend by incorporating green building practices into their projects, which not only benefits the environment but also attracts environmentally conscious buyers.

Local special circumstances: North Macedonia has a relatively stable political and economic environment, which has contributed to the growth of the real estate market. The government has implemented various reforms to improve the business climate and attract foreign investment, including streamlining the process of property registration and reducing bureaucratic hurdles. These measures have made it easier for both domestic and foreign investors to enter the real estate market and have contributed to its overall growth.

Underlying macroeconomic factors: Several macroeconomic factors have also played a role in the development of the real estate market in North Macedonia. The country has experienced steady economic growth in recent years, with increasing GDP and rising incomes. This has led to an expansion of the middle class and an increase in disposable income, which has fueled the demand for real estate properties. Additionally, low interest rates and favorable mortgage conditions have made it easier for individuals to access financing for property purchases. This has further stimulated demand in the market and contributed to its growth. In conclusion, the Real Estate market in North Macedonia is experiencing significant growth and development, driven by customer preferences for urban living, foreign investment, and sustainable properties. The local special circumstances, such as a stable political and economic environment, have also contributed to the market's growth. Furthermore, underlying macroeconomic factors, such as steady economic growth and favorable mortgage conditions, have fueled the demand for real estate properties.

Methodology

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.