Residential Real Estate - North Macedonia

North Macedonia

The Residential Real Estate market market in North Macedonia is anticipated to achieve a value of US$54.93bn by 2024.
It is expected to exhibit a Compound Annual Growth Rate (CAGR 2024-2029) of 6.19%, leading to a market volume of US$74.18bn by 2029.
In a global context, China is projected to generate the highest value in the Real Estate sector, reaching US$112.9tn in 2024.
The residential real estate market in North Macedonia is experiencing a surge in demand due to foreign investments and government initiatives.

Key regions: Europe, Brazil, France, Asia, United States

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Analyst Opinion

The Residential Real Estate market in North Macedonia has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Residential Real Estate market in North Macedonia have been shifting towards modern and well-designed properties. Buyers are increasingly looking for homes that offer a combination of comfort, functionality, and aesthetic appeal. This has led to an increase in demand for newly constructed properties that feature modern amenities and contemporary architectural designs. Additionally, there is a growing preference for properties located in well-connected and convenient locations, such as urban areas with easy access to transportation and essential services. Trends in the market indicate a rise in the development of residential complexes and gated communities. These types of properties offer a range of amenities and facilities such as swimming pools, fitness centers, and green spaces, which are highly appealing to buyers. The demand for such properties is driven by the desire for a higher quality of life and a sense of community. Furthermore, there has been a notable increase in the construction of apartment buildings, as they provide an affordable housing option for many individuals and families. Local special circumstances in North Macedonia have also contributed to the development of the Residential Real Estate market. The country's strategic location, situated in the heart of the Balkans, makes it an attractive destination for international investors. This has led to an influx of foreign investment in the real estate sector, particularly in urban areas and tourist destinations. Additionally, the government has implemented various initiatives to stimulate the real estate market, such as tax incentives for property developers and measures to streamline the construction permit process. Underlying macroeconomic factors have played a significant role in the growth of the Residential Real Estate market in North Macedonia. The country has experienced a period of stable economic growth, which has resulted in an increase in disposable income and improved purchasing power among consumers. This has fueled demand for residential properties, as individuals and families seek to invest in real estate as a long-term asset. Furthermore, low interest rates and favorable mortgage conditions have made it easier for buyers to finance their property purchases. In conclusion, the Residential Real Estate market in North Macedonia is experiencing growth due to customer preferences for modern and well-designed properties, the development of residential complexes and gated communities, local special circumstances such as foreign investment and government initiatives, and underlying macroeconomic factors such as stable economic growth and favorable mortgage conditions.

Methodology

Data coverage:

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

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. 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.