Shopping in Skopje: Real Estate in Skopje, North Macedonia

Written By: Jacquelyn Annete García Vadnais

A city with a 2,000 year old tradition, Skopje, North Macedonia, has been benefiting in recent years from increased political and economic stability, such that there has been a surge in foreign investment. In addition, the region has been a beneficiary of recent business development, economic development, construction, and refurbishment. Skopje continues to become appealing for prospective real estate investors to consider. For real estate investors that are trying to decide whether Skopje is the ideal place to invest in real estate, it is important to review the information below:

History of Macedonia

Macedonia has a long and diverse history. Historically, Macedonia spanned between Northern Greece and the Balkan Peninsula. Macedonia became an important civilization that served as a connection between the Mediterranean and Balkan civilizations. Macedonia is famous for its incredible artistic and scientific advances. Furthermore, during Macedonia’s Hellenistic Period the civilization was known worldwide for its wealth and prosperity. Even though Macedonia as an ancient civilization fell, its archeological treasures were preserved for centuries. In the late 19th century, the ancient kingdom of Macedonia began to be explored while it was under Ottoman rule. In addition, soldiers fighting in World War I along the Greek border uncovered Macedonian artifacts while digging trenches. Ever since, cities in Northern Greece such as Vergina have uncovered important sites such as the ruins of Aigai. Even though historically, Macedonia’s ancient civilization was located in parts of modern-day Greece, it is now located on the Balkan Peninsula northwest of Greece. Macedonia declared its independence from Yugoslavia in 1991 and is still in negotiations with Greece about which country has the right to claim the cultural treasures of Ancient Macedonia.

Modern day Skopje is a city with approximately 1 million residents. It is the major political, economic, educational, and cultural heart of the nation. In addition, it is home to architectural monuments, sports halls, and religious sites such as Hjunkar Mosque, St. Pantelejmon Monastery, and Beit Yaakov Synagogue.

Important Information When Considering Investing in Real Estate in Skopje, North Macedonia

Please review these key points when deciding whether Skopje, North Macedonia is a place to consider for your real estate portfolio.

Resolution of Conflicts with Greece

Historically, Macedonia has had a cultural struggle with Greece due to the common ties between Northern Greece and Ancient Macedonia. Greece utilized these issues to protest Macedonia entering the European Union and the North Atlantic Treaty Organization. Macedonia, with the help of its new Prime Minister Zaev, have changed the country’s name to North Macedonia, which is improving the relationship with Greece. In the long term, North Macedonia will be able to have a stronger potential chance of entering the European Union, which would provide an increase in real estate values and economic growth to the country.

Increasingly Stable Government

Ever since North Macedonia gained its independence from Yugoslavia in 1991, there have been political issues within the country that have warded off foreign direct investment. Corruption was rampant and it was difficult to find investment opportunities within North Macedonia. Due to the severity of the conflicts that occurred in Yugoslavia’s separation, it has taken many years for its former territories to find their own form of political stability. Since Zaev came to power in 2017, North Macedonia has instituted major reforms targeted at attracting foreign direct investment to North Macedonia, which will further develop in upcoming years. This, combined with favorable regional diplomacy, has put North Macedonia in a favorable position to take off both politically and economically.

Favorable Landlord Conditions

North Macedonia has a real estate market that favors the landlord’s rights. This is a positive aspect for prospective real estate investors to consider. Lease contracts have many protections and requirements that enable landlords to manage difficult tenants and exit lease agreements where tenants are not complying or are trying to stay longer than is desirable. North Macedonia is appealing for investors that want to know they are protected from potential disputes with local tenants.

Affordable Real Estate Prices

Right now, real estate prices in North Macedonia are very affordable. Currently, prices in Skopje, North Macedonia hover around 1,100 EUR per square meter. These prices are still lower given North Macedonia’s recent recovery. However, due to the improvement of relations with Greece and possible European Union and NATO talks, real estate prices in North Macedonia have a great potential to rise as those agreements proceed in the future. Real estate investors have a positive chance to capitalize on lower prices prior to North Macedonia’s potential admission to the European Union.

Accessible Real Estate Market to Foreign Investors

North Macedonia has no specific regulations that bar foreign citizens from owning property there. Overall, the real estate market within North Macedonia is receptive to foreign investment and continues to become more accessible as the country is exploring more ways to facilitate foreign direct investment and future economic growth.

Final Remarks

North Macedonia has had a sophisticated and unique history. Even though North Macedonia is young in its independence, it also has thousands of years of history, culture, and architecture to its name. In spite of the cultural and historical conflicts with neighboring Greece, North Macedonia has set itself up to really take off in the coming years through strong leadership, political stability, and alliances with the European Union and NATO. North Macedonia has made major efforts to make its markets secure for foreign direct investment, which will only help its housing values to increase due to development projects bringing in more professionals and a growing economic surge. For real estate investors that are looking for a market that is receptive to foreign direct investment with a low buy in, North Macedonia is absolutely an opportunity to watch in the coming years. It will be fantastic to see how the market shifts in North Macedonia in the coming years due to its unique geographic location, fantastic culture, and strong allure for foreign direct investment.

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Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.

Jacquelyn has a JD/ MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.

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