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Residential Real Estate Leases - North Macedonia

North Macedonia

The Residential Real Estate Leases market market in North Macedonia is expected to see significant growth in the coming years.
By 2024, the revenue of this market is projected to reach US$436.50m.
Among the various segments within this market, Apartment Leases are expected to dominate with a projected market volume of US$238.00m in 2024.
Looking ahead, the market is anticipated to maintain a steady growth trajectory.
With an annual growth rate (CAGR 2024-2029) of 8.05%, the revenue is expected to reach US$642.80m by 2029.
This positive growth trend indicates the increasing demand and potential for the Residential Real Estate Leases market market in North Macedonia.
North Macedonia's residential real estate lease market is experiencing a surge in demand due to its attractive investment opportunities and growing tourism sector.

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Analyst Opinion

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

Customer preferences: In recent years, there has been an increasing demand for residential real estate leases in North Macedonia. This can be attributed to several factors, including changing lifestyles and preferences among the population. Many individuals are now opting to rent rather than buy a property, as it offers greater flexibility and freedom. Renting allows people to easily relocate for work or personal reasons, without the burdens of homeownership. Additionally, renting provides a more affordable option for those who may not have the financial means to purchase a property outright.

Trends in the market: One of the key trends in the residential real estate leases market in North Macedonia is the rise of urbanization. As more people migrate from rural areas to cities in search of better job opportunities and a higher standard of living, the demand for rental properties in urban areas has increased significantly. This trend is expected to continue in the coming years, driving further growth in the market. Another trend in the market is the increasing popularity of furnished apartments. Many tenants prefer to rent fully furnished properties, as it saves them the hassle and cost of purchasing and moving furniture. This trend is particularly prevalent among young professionals and expatriates who value convenience and are looking for a hassle-free living arrangement.

Local special circumstances: North Macedonia has a relatively low homeownership rate compared to other European countries. This is partly due to the historical and cultural preference for renting rather than owning property. Renting has long been a common practice in the country, and this cultural norm continues to influence the residential real estate leases market. Furthermore, the government of North Macedonia has implemented policies to encourage the growth of the rental market. This includes the introduction of favorable tax incentives for landlords and the simplification of leasing procedures. These measures have helped to create a more favorable environment for both landlords and tenants, further driving the growth of the market.

Underlying macroeconomic factors: The growth of the residential real estate leases market in North Macedonia is also supported by favorable macroeconomic conditions. The country has experienced steady economic growth in recent years, with a stable and improving business environment. This has attracted foreign investment and created new job opportunities, leading to increased demand for rental properties. Additionally, low interest rates and easy access to financing have made it more affordable for investors to enter the rental market. This has stimulated the construction of new rental properties and the renovation of existing ones, further expanding the supply of rental units. In conclusion, the Residential Real Estate Leases market in North Macedonia is experiencing significant growth and development. Changing customer preferences, such as the desire for flexibility and affordability, are driving the demand for rental properties. The rise of urbanization and the preference for furnished apartments are also key trends in the market. Local special circumstances, such as the cultural preference for renting and government policies, further contribute to the growth of the market. Favorable macroeconomic conditions, including steady economic growth and low interest rates, support the expansion of the market. Overall, the residential real estate leases market in North Macedonia is expected to continue its growth trajectory in the coming years.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.