Macedonia's real estate now for sale to foreign nationals

13/03/2008

New property law amendments allowing foreign nationals to purchase real estate in Macedonia are expected to attract foreign investment, but only EU and Organization for Economic Cooperation & Development (OECD) members are given consideration.

By Marina Stojanovska for Southeast European Times in Skopje -- 13/03/08

Property in Macedonia is now for sale to foreign nationals. [Getty Images]

Due to amendments in property laws, foreign nationals and legal entities will be able to purchase property and land in Macedonia, according to a recent decision by the government.

"The property law amendments will give foreigners the same rights as domestic legal entities and individuals when they buy real estate in Macedonia. Such liberalisation of the real estate market will attract foreign investments and improve the real estate market," said Deputy Prime Minister Zoran Stavrevski.

The amendments include only the citizens of EU and OECD countries, while the reciprocity principle applies to other countries. Stavrevski said the ministry of law should draft a list of countries in which Macedonian nationals are allowed to buy real estate and land so Macedonia can reciprocate.

Stavrevski explains that in this phase of amendments, foreign nationals will not be allowed to buy agricultural land because of state needs. "The liberalisation of agricultural land will begin after Macedonia becomes a full EU member."

Some real estate agents with the Economic Chamber of Macedonia expect that the liberalisation of the real estate market will bring an influx of tourists, since foreign nationals are interested in buying land and facilities mostly near lakes and in the mountains. In Bulgaria and Montenegro, for example, real estate prices per square meter drastically increased immediately after the liberalisation.

"Prices in real estate are affected by the market. There have been foreign investments in construction of residential buildings, so the prices per square meter increased only slightly," says Liljana Kovaceva, chairwoman of the real estate agents with the Economic Chamber.

Costs per square meter for a new flat in Macedonia range from 1,000 to 1,500 euros, while per square meter in older buildings runs between 650 and 850 euros.

According to Kovaceva, a decline in real estate development is not due to a closed market that is still not liberalised, but to several scandals involving the development of residential buildings in which thousands of people were deceived.