Macedonia Property Hitting Investors’ Radar
Rugged and strikingly beautiful, Macedonia has been slow to reach the radar of international property investors. However, there have been signals lately that this might be changing.
With a population of just over 2 million inhabitants, Macedonia was part of the former Yugoslavia until it declared its independence in 1991. The tiny, land-locked country has lately been mentioned among the remaining Central and Eastern European (CEE) countries where foreign property investors can still find excellent value for the money.
There is no doubt that Macedonia has a lot to offer. Tourism has been steadily growing over the last decade. Visitors can enjoy skiing in mountain resorts or shopping in the cities such as Skopje, Bitola and Ohrid. The country also has numerous Hellenic and Roman archaeological sites as well as many world-class nature reserves.
Macedonians earn an average monthly salary of US$250.00; therefore, property values appear to be a bargain. Even so, prices are rising as demand outstrips their supply. As well, multinational companies are beginning to look at Macedonia as a location for possible expansion due to its low labour costs. According to Macedonia’s State Statistical Office, these pressures have led to property growth rate of 20% and an average annual rental yield of between 8% and 10% during 2007.
However, buyers should be aware of factors that can make purchasing property in Macedonia difficult. Mortgages, for example, are available from Macedonian banks but the terms can be burdensome. Some banks might ask for multiple sources of collateral, multiple guarantors and high fees can shock even the most jaded of investors. Also, all purchases by foreigners need to be approved by the Ministry of Justice, at additional cost and delay.
James Gonzalez, Market Analyst at Obelisk, sees Macedonia as a market to watch. “Although Macedonia is experiencing a great deal of growth in its property sector, it still needs to make numerous systematic changes to ease the burden on foreigners wanting to do business in the country, and especially if they are looking for financing there. These changes need to be made if Macedonia hopes to improve its chances of joining the EU.”
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com./
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com.
With a population of just over 2 million inhabitants, Macedonia was part of the former Yugoslavia until it declared its independence in 1991. The tiny, land-locked country has lately been mentioned among the remaining Central and Eastern European (CEE) countries where foreign property investors can still find excellent value for the money.
There is no doubt that Macedonia has a lot to offer. Tourism has been steadily growing over the last decade. Visitors can enjoy skiing in mountain resorts or shopping in the cities such as Skopje, Bitola and Ohrid. The country also has numerous Hellenic and Roman archaeological sites as well as many world-class nature reserves.
Macedonians earn an average monthly salary of US$250.00; therefore, property values appear to be a bargain. Even so, prices are rising as demand outstrips their supply. As well, multinational companies are beginning to look at Macedonia as a location for possible expansion due to its low labour costs. According to Macedonia’s State Statistical Office, these pressures have led to property growth rate of 20% and an average annual rental yield of between 8% and 10% during 2007.
However, buyers should be aware of factors that can make purchasing property in Macedonia difficult. Mortgages, for example, are available from Macedonian banks but the terms can be burdensome. Some banks might ask for multiple sources of collateral, multiple guarantors and high fees can shock even the most jaded of investors. Also, all purchases by foreigners need to be approved by the Ministry of Justice, at additional cost and delay.
James Gonzalez, Market Analyst at Obelisk, sees Macedonia as a market to watch. “Although Macedonia is experiencing a great deal of growth in its property sector, it still needs to make numerous systematic changes to ease the burden on foreigners wanting to do business in the country, and especially if they are looking for financing there. These changes need to be made if Macedonia hopes to improve its chances of joining the EU.”
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com./
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com.
posted by Alison Kane at 9:37 am
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