North Macedonia's Residential Property Market Analysis 2026

North Macedonia’s housing market remains vibrant, underpinned by robust buyer demand, an uptick in residential construction, and favorable economic trends, with urban areas experiencing the strongest growth and the highest property values.

This comprehensive analysis by the Global Property Guide examines recent price movements, demand and supply dynamics, market outlook, and the key factors shaping the country’s residential property sector.

Table of Contents

• Property Prices and Price Index
• Property Demand Trends
• Property Supply Trends
• Mortgage Market and Interest Rates
• Rental Market: Rents and Rental Yields
• Economic and Social Factors

Property Prices and Price Index

During the fourth quarter of 2025, the nationwide house price index rose strongly by a whopping 24.98% as compared to a year earlier, following year-on-year increases of 25.09% in Q3, 19.93% in Q2, and 19.45% in Q1, according to the National Bank of the Republic of North Macedonia, the country’s central bank. It marked the second-highest year-on-year house price growth in recent years.

When adjusted for inflation, house price growth remains strong, at 20.69% in Q4 2025 from the previous year.

House prices have been continuously increasing since Q1 2018 and have accelerated in the past four years.

North Macedonia's house price annual change:

Quarterly, nationwide house prices were up by a modest 3.17% in Q4 2025 (2.89% inflation-adjusted), compared to quarter-on-quarter increases of 4.04% in Q3, 8.63% in Q2, and 7.19% in Q1.

The government’s decision to officially change the country’s name from “Macedonia” to “North Macedonia” under the Prespa Agreement with Greece, implemented in 2019, resolved a long-standing dispute and removed a major barrier to Euro-Atlantic integration. North Macedonia became a member of the North Atlantic Treaty Organization (NATO) on March 27, 2020. The European Union approved the opening of accession negotiations in 2020, and the first intergovernmental conference in July 2022 formally launched EU accession talks, which remain ongoing.

These developments strengthened investor confidence and helped revive the country’s real estate market, which had been sluggish since the global financial crisis. The effects were particularly visible in Skopje, where demand for new housing increased alongside expanding construction activity. House prices have since grown strongly, posting double-digit increases in 2021, 2022, 2024, and 2025, reflecting renewed momentum in the housing sector.

Following house price increases of 10.8% (5.3% inflation-adjusted) in 2007 and 24.5% (18.4% inflation-adjusted) in 2008, North Macedonia’s housing market delivered generally subdued performance in the succeeding years. The slowdown was largely driven by the global financial crisis, the prolonged name dispute with Greece, and an extended period of domestic political uncertainty that further dampened investment and housing demand.

The housing market showed significant improvements just recently, with house prices rising strongly by 11.4% in 2021 and by another 20.5% in 2022, buoyed by strong property demand from both local and foreign homebuyers. House price growth remained robust in the succeeding three years, increasing by an annual average of 14.1% in 2023-25.

Foreign individuals can freely buy apartments and buildings, subject to the reciprocity rule and approval from the Ministry of Justice.

Foreign citizens and companies can directly own land for construction in Macedonia under the Law on Construction Land adopted in 2008. Under the law, the construction land is sold through a public tender procedure. Also, foreign individuals and companies can lease land for up to 99 years through a public bidding process.

During 2025, North Macedonia’s economy was estimated to have expanded by 3.4% from a year earlier, following annual growth of 2.8% in 2024, 2.1% in 2023, 2.8% in 2022, 4.5% in 2021, and a pandemic-induced contraction of 4.7% in 2020.

The economy is expected to grow by an annual average of 3.2% in the next two years, based on a forecast released by the International Monetary Fund (IMF).

Though still below most European income levels, North Macedonia remains a relatively low-income economy, with a population of about 1.8 million and GDP per capita exceeding US$10,000 in 2025. Structural challenges persist, including corruption, outward migration, and limited employment opportunities. Poverty remains a concern for a significant share of the population, with disparities particularly affecting ethnic minorities, including ethnic Albanians, who face socio-economic disadvantages alongside persistent social stereotypes and discrimination.

Property Demand Trends

Demand remains buoyant

Demand for housing in North Macedonia continues to increase, supported by rising property prices, ongoing residential construction, and steady interest from both domestic buyers and investors.

Data from the Agency for Real Estate Cadastre shows that in the fourth quarter of 2025, there were over 9,000 property transactions registered nationwide, up by approximately 12% from the previous quarter. A total of 6,230 property sales were recorded, including 5,084 traditional sales, 1,094 investor‑led sales of new units, 40 purchases from the state, and 12 auctioned properties. Rental contracts accounted for 3,053 transactions.

In Q4 2025, 1,004 newly built apartments were sold directly by developers, up by 159 units compared with the previous quarter. There were also 27,522 pre‑registration records for future construction, indicating that many projects are currently underway and could enter the market soon.

The highest recorded price for an apartment in this quarter was MKD 182,404 (EUR 2,960) per square meter for an 83‑square‑metre flat in the Centar municipality of Skopje, with a total price of MKD 15.2 million (EUR 246,171).

In terms of location, Skopje dominated apartment sales with 304 units in Q4 2025, while Bitola led in house sales, recording 91 units. The data highlights a pronounced urban–rural divide, with larger cities driving most of the market activity compared with smaller municipalities.

Despite strong price growth, home ownership remains high, with ownership rates above 87%, suggesting that many households still prefer owning to renting, which supports ongoing demand for purchase‑oriented housing.

Property Supply Trends

Residential construction continues to increase, albeit at a slower pace

During 2025, the total number of dwellings for which building permits were issued in North Macedonia increased slightly by 1.5% y-o-y to 8,494 units, according to the State Statistical Office. This is a slowdown from the annual growth of 6.4% in 2024 and 12.3% in 2023.

Though there was a wide regional variation:

• In Skopje, dwelling permits fell slightly by 1.2% y-o-y to 3,270 units during 2025, in stark contrast to the annual decline of 6.8% in 2024 and 23.8% in 2023.
• In Vardar, dwelling permits soared by 133.2% y-o-y to 646 units last year, after a plunge of 60.2% in 2024 and a strong growth of 79.4% in 2023.
• In the East, permits were down by 10.1% to 524 units in 2025 from a year earlier, following increases of 22.5% in 2024 and 18.1% in 2023.
• In the South-West, dwelling permits declined by 12.8% y-o-y to 1,238 units in 2025, following annual growth of 10.7% in the previous year and 66.3% two years ago.
• In the South-East, dwelling permits soared by 48.9% y-o-y to 1,117 units in 2025, following a contraction of 34.7% in 2024 and a surge of 55.3% in 2023.
• In Pelagonija, the number of dwelling permits plummeted by 58.6% y-o-y to 272 units last year, following a strong growth of 86.1% in 2024 and a contraction of 14.7% in 2023.
• In Polog, dwelling permits were up by 12.4% y-o-y to 1,365 units in 2025, following a strong growth of 57.9% in 2024 and a decrease of 53.3% in 2023.
• In the North-East, dwelling permits fell by 60.5% to 62 units in 2025, after surging by 292.5% in the preceding year and a decline of 70.6% two years earlier.

Skopje, the capital, accounted for more than 38% share of all residential construction activity in the country last year.

From 2010 to 2020, there was an average of nearly 2,900 building permits issued annually in North Macedonia. Construction activity strengthened in the years that followed, with the number of building permits rising to an average of almost 3,900 per year from 2021 to 2025.

In 2025 alone, a total of 3,944 building permits were issued nationwide, an increase of 12% from the previous year and 26.7% above the 2010-2023 annual average, according to figures from the State Statistical Office.

Mortgage Market and Interest Rates

Mortgage interest rates falling gradually

The National Bank of the Republic of North Macedonia kept its main interest rate unchanged at 4% during its March 2026 meeting, maintaining a cautious stance amid risks from the Middle East conflict. Inflation continued to ease, reaching 2.9% in February, though higher global energy prices may put upward pressure on prices.

North Macedonia's mortgage loan interest rates:

“The monetary policy decision is made under conditions of exceptionally heightened global uncertainty and vagueness caused by the recent outbreak of the military conflict in the Middle East. The initial effects are evident through disruptions in global oil supply and the rise in energy prices. The overall effects on the global economy depend on the intensity and duration of the Middle East conflict,” said the central bank. “The potential prolongation, as well as the expansion of the military actions, would cause longer-lasting disruptions in the energy market, a stronger increase in energy prices, prolonged uncertainty, a rise in the general price level, and worse economic prospects.”

The interest rate on the overnight deposit facility was also kept at 3.5%, while the seven-day deposit facility – previously around 4% – was discontinued in late 2025 following changes to the central bank’s operational framework.

The central bank signaled its readiness to use all available tools to preserve the denar’s stability against the euro and maintain price stability.

With this, mortgage interest rates are gradually declining. In January 2026, the average interest rate for denar-denominated new housing loans stood at 3.29%, down from 3.55% in January 2025 and 3.84% in January 2024, according to central bank figures.

By initial rate fixation (IRF):

• Floating rate, or up to 1-year IRF: 3.53% in January 2026, down from 3.71% in the previous year and from 3.92% two years earlier.
• 1-5 years IRF: 3.28%, lower than the 3.5% a year earlier and 3.65% two years ago.
• 5-10 years IRF: 3.23%, down from 3.53% a year ago and from 3.92% two years earlier.
• Over 10 years IRF: 3.56%, higher than the 3.35% in the previous year but still lower than the 3.77% two years ago.

Likewise, interest rates for euro-denominated new housing loans are also declining. In January 2026, the average interest rate on these loans was 3.44%, down from 3.72% in the same period last year and from 3.95% two years ago. Over the same period:

• 1-5 years IRF: 3.92%, up from 3.22% a year earlier but sharply down from 6.44% two years ago.
• 5-10 years IRF: 3.75%, slightly up from 3.55% in the previous year but down from 4.37% two years earlier.
• Over 10 years IRF: 3.27%, sharply down from 4.64% in the same period last year but slightly up from 3.04% two years ago.

Interest rates for outstanding housing loans are also falling gradually. In January 2026, the average interest rate for denar-denominated outstanding housing loans was 3.85%, slightly down from 4% in the same month in the previous year and from 4.14% two years ago.

By maturity:

• Up to 1 year: 3.4%, up from 2.99% a year earlier but down from 4.07% two years ago.
• 1-5 years: 3.36%, slightly down from 3.41% in the previous year and from 3.42% two years earlier.
• Over 5 years: 3.86%, down from 4.01% in the same period last year and from 4.15% two years ago.

Over the same period, the average interest rate for euro-denominated loans was 3.89%, down from 3.98% in January 2025 and from 4.23% in January 2024.

Mortgage market continues to grow strongly

During 2025, outstanding loans for house purchases increased strongly by 15.8% y-o-y to MKD 109.34 billion (EUR 1.77 billion), following annual expansions of 12.5% in 2024, 10.5% in 2023, 12.7% in 2022, 15.5% in 2021, 13.6% in 2020, 12.7% in 2019 and 15.2% in 2018, according to the National Bank of the Republic of North Macedonia. It is now the largest amount of housing loans recorded in the country’s history.

About 88.9% were denominated in foreign currency, while the remaining 11.1% were in domestic currency.

During 2025:

• Denar-denominated housing loans almost doubled to MKD 12.12 billion (EUR196.68 million) from a year earlier, in stark contrast to the y-o-y decline of 6.7% in the preceding year.
• Foreign currency-denominated housing loans also increased by 10.3% y-o-y to MKD 97.22 billion (EUR1.58 billion), following an annual growth of 14.2% in the prior year.

From 2010 to 2025, the total value of housing loans rose by an annual average of 13.6%. As a result, the mortgage market expanded to around 10.7% of GDP in 2025, more than double its size a decade ago. Yet, it remains very low when compared to international standards.

The strong momentum appears to have continued into this year. In February 2026, the total value of outstanding housing loans increased sharply by 16.1% year-on-year to MKD 111.36 billion (EUR 1.81 billion).

Rental Market: Rents and Rental Yields

Rental yields are moderate to good

Gross rental yields on apartments in North Macedonia are moderately good, ranging from 4.09% to 9.08%, with a national average of 6.53% in Q1 2026, according to a recent survey conducted by the Global Property Guide. It is slightly higher than the yields of 6.51% registered in Q3 2025, 6.47% in Q1 2025, and 6% in Q1 2024.

In Q1 2026:

• In Skopje, apartments offer gross rental yields ranging from 4.09% to 9.08%, with a city average of 6.75%. This is higher than the city average of 6.71% seen in the previous year and 5.37% two years ago.
• In Bitola, gross rental yields for apartments vary from 5.51% to 7.5%, with a city average of 6.27%. This is lower than the 6.35% recorded in the prior year and from 6.63% in Q1 2024.
• In Štip, rental yields range from 6.32% to 6.8% in Q1 2026, with a city average of 6.56%. This is higher than the yields of 6.34% seen in Q1 2025 and 6.25% in Q1 2024.

Two-bedroom apartments in Skopje’s central districts can be rented out for around MKD 22,800 (EUR 370) per month in Q1 2026, according to Global Property Guide. But a similar apartment in Bitola and Štip rents for just MKD 12,330 (EUR 200) and MKD 10,480 (EUR 170) per month, respectively.

There is no rent control in North Macedonia; rent is determined by the market.

Economic and Social Factors

Economic conditions improving; unemployment gradually falling

During 2025, North Macedonia’s economy was estimated to have expanded by 3.4% from a year earlier, following annual growth of 2.8% in 2024, 2.1% in 2023, 2.8% in 2022, 4.5% in 2021, and a pandemic-induced contraction of 4.7% in 2020. The growth was driven by stronger domestic demand, as public investment projects, including the Corridor 8/10d road project, intensified, while consumption was supported by government transfers and real wage growth.

Looking ahead, the economy is projected to expand at an average annual rate of 3.2% over the next two years, according to IMF estimates. The World Bank presents a slightly more cautious view, forecasting average growth of 3% for 2026-2027.

“The medium-term outlook is positive, though downside risks remain. Growth is projected to average 3% in 2025–2027. Risks include weak investments and slower activity in key trading partners, said the World Bank.

The outbreak of the Middle East conflict involving the United States, Israel, and Iran increased external risks during the year, contributing to higher global energy prices, supply‑chain volatility, and greater uncertainty in international trade and financial conditions – factors that central banks and policymakers have highlighted as headwinds for many emerging economies.

Inflation has eased in recent months. In February 2026, nationwide inflation slowed to 2.9%, down from 3.2% in the previous month and from 5% in the same period last year. This marked the lowest reading since April 2025, largely driven by ongoing deflation in transport costs.

However, with rising fuel prices amid the ongoing Middle East conflict, inflation is expected to edge upward in the coming months, posing upward pressure on household and business costs.

“In the domestic economy, inflation continues to decelerate in line with expectations, with the annual inflation rate reducing to 2.9% in February,” said the central bank.

“Despite the favorable trend in domestic inflation so far, the risks to its future dynamics have increased. These risks are related to the recent military events and disruptions in energy supply from the Gulf countries. Market assessments of oil prices for the following period have been revised considerably upward in the short run. The longer-term effects on the global prices, and consequently on domestic inflation, will depend on the intensity and duration of the military actions in the Middle East,” added the central bank.

From an annual average of just 1.4% from 2010 to 2020, inflation increased to 3.2% in 2021. It accelerated to 14.2% in 2022 and remained high at 9.4% in 2023. Inflation reached a record high of 19.8% in October 2022. Overall inflation eased to about 3.5% in 2024 and remained manageable at 3.9% in 2025.

Unemployment continues to fall, although it remains very high by international standards. In Q4 2025, the nationwide unemployment rate stood at 11.4%, down from 11.5% in the previous quarter and from 11.9% in the same period last year. It is now the lowest jobless rate recorded in the country’s recent history.

North Macedonia had a total labor force of 800,911 people in Q4 2025, 91,388 of whom were unemployed.

The jobless rate averaged 15.3% in 2018-25, a sharp improvement from an annual average of 25.8% in 2013-17 and 33.6% in 2000-12.

Political tensions and EU accession challenges in North Macedonia

In recent years, the country has been in a state of continuous crisis after the Macedonian opposition leader, Zoran Zaev, released what he has called "information bombs” against the government.

Zaev accused the former government of systematically wiretapping all important people in the country and released a series of allegedly wiretapped conversations of the then-prime minister, Nikola Gruevski, the head of the secret service, and other senior officials, in which they apparently discussed interference in the judiciary, media, and urban-planning process.

Zaev claimed that the elections of April 2014, in which the ruling conservative VMRO-DPMNE party of Gruevski defeated Zaev’s ex-communist Social Democrats (SDSM), were fraudulent and has accused Gruevski of operating a dictatorship. Zaev’s party tends to represent ethnic Albanians.

Gruevski, who had been prime minister since 2006, resigned in January 2016 to pave the way for early elections, initially scheduled for February before being postponed until June 5, and finally to December 2016. A highly controversial presidential amnesty for 56 of those subjects of investigations into the alleged wiretappings was issued by then president Gjorge Ivanov, with the obvious intention of aborting the judicial investigations and hiding any evidence.

Mass protests erupted in Skopje. Zaev and 10 other politicians who have received amnesties have refused them, and foreign institutions have condemned them.

The December 2016 general elections failed to produce an outright winner, and months of tension over the formation of a new government ensued. Finally, in May 2017, a new government was formed, with Zoran Zaev as the country's new prime minister. Zaev promised to boost the economy, address political divisions and tense relations between ethnic Macedonians and ethnic Albanians in the country, and finally resolve the country's dispute with Greece over its name - a vital step for Euro-Atlantic integration.

A dispute with Greece over Macedonia’s name had blocked the country’s EU and NATO accession. However, the change of government has changed the picture, with Zaev indicating Macedonia’s willingness to compromise to resolve the issue. PM Zaev also announced that Skopje's airport will no longer bear the name Alexander the Great, nor will the motorway leading to Greece, which will now be called Friendship Highway.

Then, in June 2018, the government decided to enter into a new agreement with Greece, officially changing its name from “Macedonia” to “North Macedonia” to resolve the decades-long name dispute, paving the way for the country to start accession talks with NATO and the EU. In 2019, the name change came into force after ratifications by the Greek and Macedonian parliaments.

During the 2019 presidential election, Stevo Pendarovski of the Social Democratic Union of Macedonia and the Democratic Union for Integration defeated the nationalist candidate Gordana Siljanovska-Davkova.

North Macedonia signed the NATO accession agreement in 2019 and, on March 27, 2020, became an official member state.

Then in July 2022, North Macedonia’s parliament accepted a French proposal aimed at settling its dispute with Bulgaria and clearing the way to long-overdue EU membership talks. In the past years, Bulgaria has been blocking North Macedonia’s efforts to join the EU, accusing it of disrespecting historical and cultural ties. To remove Bulgaria's veto against North Macedonia's accession talks, they have made several demands, including the acceptance that the language of North Macedonia is derived from Bulgarian and the recognition of a Bulgarian minority in the country, which requires an amendment to the Macedonian Constitution.

However, there has recently been resistance to amending the national constitution to recognize the Bulgarian minority.

In the 2024 presidential election, nationalist Gordana Siljanovska‑Davkova defeated incumbent Stevo Pendarovski, becoming North Macedonia’s first female president with nearly 65% of the vote, backed by the VMRO‑DPMNE party. Early in her term, President Siljanovska‑Davkova referred to the country as “Macedonia,” prompting strong objections from Greece, which warned it could delay or withhold ratification of parts of the 2018 Prespa Agreement. This raised fresh tensions between Skopje and Athens.

In 2025, North Macedonia continued to grapple with political and diplomatic challenges that affected its EU accession path. Local elections held on 19 October and 2 November 2025 resulted in a strong showing for the ruling conservative VMRO‑DPMNE party, which won mayoral races in 55 of the country’s 81 municipalities, including Skopje, consolidating its domestic political influence amid a stalemate over EU integration.

That year also saw diplomatic friction with Bulgaria escalate: North Macedonia’s prime minister used language that the Bulgarian foreign ministry condemned as “unacceptable and offensive,” reflecting ongoing tensions between Sofia and Skopje over historical and identity issues tied to the constitutional changes required for EU accession.

Throughout 2025, North Macedonia remained in sustained dialogue with EU institutions about fulfilling outstanding conditions for accession negotiations, especially the constitutional amendment to recognize a Bulgarian minority, with EU officials publicly stating that negotiations could advance once agreed changes are implemented.

Sources:

• Basic Economic Data and Residential Real Estate Prices (National Bank of the Republic of North Macedonia): https://www.nbrm.mk/
• North Macedonia Housing Market Shows Sharp Urban Price Divergence, Raising Bubble Concerns (Balkan View): https://balkanview.com/
• Real estate market on the rise: Over 9,000 transactions registered in the last quarter of 2025, prices reached record levels (MR Portal): https://makedonskiportal.mk/
• Construction (State Statistical Office): https://www.stat.gov.mk/
• Issued building permits, December 2025 (State Statistical Office): https://www.stat.mk/
• Regular meeting of the Monetary Policy Executive Board (National Bank of the Republic of North Macedonia): https://www.nbrm.mk/
• Gross rental yields in North Macedonia: Skopje and 2 other cities (Global Property Guide): https://www.globalpropertyguide.com/
• Monetary and Interest Rates Statistics (National Bank of the Republic of North Macedonia): https://nbstat.nbrm.mk/
• Republic of North Macedonia (IMF): https://www.imf.org/
• Consumer Price Index (State Statistical Office): https://www.stat.gov.mk/
• Consumer Price Index and Retail Price Index, February 2026 (State Statistical Office): https://www.stat.mk/
• Recent Macroeconomic Indicators, December 2025 (National Bank of the Republic of North Macedonia): https://www.nbrm.mk/
• IMF Executive Board Concludes 2025 Article IV Consultation with the Republic of North Macedonia (International Monetary Fund): https://www.imf.org/
• North Macedonia Reform Progress Could Condition EU Disbursement Timing (Fitch Ratings): https://www.fitchratings.com/
• North Macedonia (The World Bank): https://www.worldbank.org/
• Labour market (State Statistical Office): https://www.stat.mk/
• Active population, fourth quarter 2025 (State Statistical Office): https://www.stat.mk/
• North Macedonia name dispute reignites spat with Greece (DW): https://www.dw.com/
• Foreign Ministry Condemns “Unacceptable, Offensive Language” Used by North Macedonia's PM towards Bulgarian Foreign Minister (Bulgarian News Agency): https://www.bta.bg/
• North Macedonia to Start Accession Negotiations Right After It Implements Constitution Changes, Commissioner Kos Says (Bulgarian News Agency): https://www.bta.bg/
• North Macedonia country profile (BBC News): https://www.bbc.com/