Tourism’s Impact on North Macedonia’s Real Estate Market

Published on October 3, 2025 and written by Cyril Jarnias

The rise of tourism in North Macedonia, with its picturesque landscapes and cultural richness, is leading to significant changes in the local real estate market. As more and more visitors discover its charms, the growing demand for property purchases and rentals is pushing prices on an upward trajectory.

This dynamic not only influences real estate transactions but also raises questions about the balance between tourist development and protection of local resources. Investors and residents must navigate a changing landscape, where tourism plays a central role in the country’s economic and social transformation.

Tourist Buzz and Real Estate Boom in North Macedonia

The rise of tourism in North Macedonia in recent years has had a direct impact on the real estate market, particularly in major tourist cities like Skopje and Ohrid.

In May 2025, the country welcomed 130,739 tourists, of which 77.6% were foreign visitors. Over the January-May 2025 period, overall tourist numbers increased by 16.3% compared to last year, with a 23.6% growth in foreign tourists.

This record influx translates into growing demand for temporary and permanent accommodation in sought-after areas:

City	Real Estate Demand Trend	Key Drivers
Skopje	Strong Increase	Economic/cultural capital; business and leisure tourism
Ohrid	Very Strong Increase	UNESCO heritage; lakeside/cultural tourism

• In Skopje: Urban rehabilitation (e.g., Skopje 2014 project) has enhanced appeal for local and foreign real estate investors.
• In Ohrid: The UNESCO city status attracts both international and domestic buyers looking for second homes or seasonal rental properties.

Preferred types of investments include:

• Short-term rental properties (apartments or houses), especially via digital platforms.
• Second homes, sought by both expatriates and Macedonian urbanites for personal use or seasonal rental.
• Small family hotels and guesthouses adapted to international tourism.

Investors are attracted by attractive returns linked to:

• The continuous increase in overnight stays (+12% between January-May 2024/2025).
• A diverse clientele (Turkey, Germany, France…).

However, this growth comes with several challenges:

List of main issues:

• Pressure on local housing stock: increased difficulty for some local residents to access property in high-demand tourist areas.
• Rapid price increases sometimes leading to speculation detrimental to the local community.
• Strain on urban infrastructure (road networks/water/sanitation), requiring accelerated adaptation.

The Macedonian government is heavily investing in modernizing urban and tourist infrastructure: renovation of the two main international airports (Skopje/Ohrid), urban beautification, and creation of cultural/museum spaces.

Regulatory measures are also emerging to:

• Regulate the short-term rental supply,
• Promote access to primary housing for residents,
• Ensure balanced development between tourist appeal and local quality of life.

This context makes the Macedonian real estate market a dynamic yet complex sector where remarkable opportunities for investors—mainly around seasonal rentals—coexist with the need for vigilance regarding local social balances.

The Tourist Gems Redefining the Real Estate Landscape

Major Tourist Sites in North Macedonia Influencing the Real Estate Market:

• Lake Ohrid
  A UNESCO World Heritage site, Lake Ohrid attracts a growing number of visitors each year thanks to its spectacular landscapes, beaches, and rich historical heritage. Key attractions include the Church of Saint John at Kaneo, the Ancient Theatre of Ohrid, and Samuil’s Fortress. This tourist enthusiasm has led to a notable increase in real estate prices in the region, particularly around the lake and in Ohrid itself. Demand is strong for second homes, renovated traditional houses, and modern apartments with lake views.
• Skopje
  A dynamic capital combining Ottoman heritage and modern post-earthquake architecture, Skopje benefits from a tourism boom centered on iconic places like Macedonia Square, the historic Stone Bridge, and museums (Skopje City Museum). Tourism development here is accompanied by a urban transformation marked by the construction or renovation of hotels, tourist residences, and also housing intended for short-term rental investment.
• Bitola
  The country’s second city in cultural importance after Skopje and the southern gateway to the Greek Balkans, Bitola charms with its imposing cathedral, lively festivals, and historical remains. The growing influx of tourists has stimulated the improvement of hotel infrastructure and enhanced the appeal of restored old properties into guesthouses or rental apartments.

City/Site	Major Tourist Assets	Effect on Real Estate
Lake Ohrid	UNESCO heritage; beaches; churches	Price increases; strong demand for second homes/seasonal rentals
Skopje	Lively capital; museums; monuments	Increased new construction; short-term rentals in demand
Bitola	Cultural festivals; historic center	Renovation of old buildings for tourism

Evolution of Sought-After Property Types:

• Traditional houses converted into tourist accommodations
• Modern apartments with privileged views (especially near the lake)
• Long-term rental investments aimed at expatriates/international workers
• Second homes adapted for seasonal stays

Local Economic Consequences:

The tourism boom directly stimulates the real estate sector through a widespread increase in land transactions in these attractive areas. This also promotes job creation related to construction/renovation as well as the tertiary sector (hospitality), while generally energizing the concerned local economies.

Main Effects:

• Rapid land valuation
• Urban architectural diversification
• Potential pressure on access to permanent local housing due to increased foreign demand

The Impact of Tourist Flows on Soaring Real Estate Prices

The marked increase in tourist flows in North Macedonia has had a direct influence on real estate prices, particularly in high-tourist-attraction areas like Skopje and Ohrid.

City/Region	Average Price per m² (2025)	Real Estate Dynamics	Rental Yield
Skopje	€1,500–2,000	Strong demand, new projects	5–7%
Ohrid	Up to €2,000+	Dynamic seasonal rental	Up to 8%
Bitola	~€900	Still affordable market	Variable

• In Skopje, the capital and economic hub, demand is sustained by the arrival of new residents, rapid urban development, and infrastructure modernization. The Aerodrom, Karpoš, and Centar neighborhoods are particularly sought after.
• In Ohrid, a UNESCO city on the shores of its namesake lake, the surge in seasonal rentals linked to tourist influx has caused prices to soar; yields sometimes exceed those observed in Skopje.
• In cities like Bitola, although the market remains more affordable (~€900/m²), an initial appreciation is observed thanks to growing cultural tourism.

Tourism growth is attested by a double-digit increase in the number of foreign visitors in 2024–2025. Turkish tourists represent up to 42% of foreign arrivals. Other dynamic markets include Serbia (+20 to +30%, especially towards Skopje/Ohrid), Germany, and France.

The main economic and social factors explaining this surge:

• Increased demand for properties intended for short-term rentals (Airbnb, hotels).
• Attraction to natural/cultural heritage (Lake Ohrid UNESCO site).
• Foreign investments attracted by high yields and a price per m² lower than major European capitals.
• Urban modernization (transport, commerce).

In less frequented or rural areas:
Prices remain stable or even moderate, due to insufficient tourist flow to stimulate the local real estate market. These areas attract neither investors nor developers.

For local residents:

The rapid price increase creates a risk of residential exclusion in some tourist neighborhoods where access to housing becomes difficult for the local population.

For foreign investors:

The situation still offers strong potential: high rental yield in some cities; but beware of risks related to a local real estate bubble or future stricter regulation.

Observed government policies:

• Indirect support via urban/hotel renovation projects.
• Relative absence of restrictive measures on foreign investment or short-term rentals – which currently amplifies the upward trend.

Key takeaway:

The spectacular rise in international tourism selectively boosts
the Macedonian real estate market in its attractive hubs,
thus widening a growing gap with peripheral regions
and raising questions about local social sustainability.

The Rise of Rental Investments in Macedonian Lands

Rental investments in North Macedonia are experiencing remarkable growth, fueled by a combination of economic, political, and social factors.

Main Reasons for Increased Investor Interest:

• Stable economic growth and favorable prospects for the coming years.
• Attractive purchase prices, notably in Skopje where the square meter ranges between €1,500 and €2,000, well below many European capitals.
• High rental yields, oscillating between 5% and 7% in the capital, with peaks reaching up to 8% in some tourist regions.
• Sustained rental demand, due to the continuous arrival of new residents, university students, and foreign workers.

Recent Tourism Trends:

North Macedonia benefits from growing tourist appeal around UNESCO sites like Ohrid.

The number of international visitors increases each year, which stimulates demand for seasonal rentals (furnished apartments, second homes).

Occupancy rates during the summer high season are particularly high in Ohrid.

“Ohrid attracts mainly for its exceptional tourism potential: a city listed as a UNESCO World Heritage site thanks to its lake and historic center. Rental yields there are variable but can reach 8% or more on properties intended for tourists.”

Most Sought-After Regions for Real Estate Investment:

Region	Main Assets	Average Purchase Price (€/m²)	Gross Yield
Skopje	Dynamic capital, strong residential & office demand	1,500–2,000	5–7%
Ohrid	Major tourist site (lake & UNESCO heritage)	Variable	Up to 8%+
Bitola	Cultural tourism & university students	Affordable	Growing potential

In these areas:

• In Skopje, the market is driven by rapid urban development and a relative shortage of supply facing growing demand (rents starting around €200 up to sometimes over €600 depending on standard).
• In Ohrid, it is international tourism that strongly boosts short-term rentals.
• Bitola attracts with its heritage projects linked to cultural tourism as well as a loyal student clientele.

Factors That Have Favored This Growth:

• Modernization of urban infrastructure
• Increased political stability over several years
• Relatively advantageous tax policies for foreign real estate investors
• Rapid urbanization creating a supply/demand imbalance

“The strong demand for apartments to rent keeps prices at a high level. They do not expect a decrease in rents. Even in the capital, demand far exceeds supply.”

Impact on Real Estate Prices & Local Communities:

The sector’s dynamism has led to an average annual increase of over +5%, with some central neighborhoods showing nearly +6%. This trend exerts notable pressure on local purchasing power—especially among young professionals or students—while some property owners fully profit from the tourism-related boom.

Potential Challenges Encountered:

List of main challenges:

• Progressive saturation in some highly demanded urban areas (notably Skopje center)
• Increased speculative risk if supply eventually significantly exceeds real demand
• Possible government regulations aiming either for temporary rent caps or more declarative/fiscal obligations to avoid a real estate bubble or protect local populations

Comparative Table – Recent Evolution:

Year	Average Price per m² (Skopje)	Annual Variation (%)
Mid‑2024	~€1,783 –1,867	+5–6%

Economic projections anticipate maintenance or even a slight progression as long as the international tourist flow persists and a stable political climate encourages foreign direct investments.

The concurrent rise of the Macedonian rental real estate market is explained as much by its solid economic fundamentals as by its growing capacity to attract both tourists and international investors. However, it is now necessary for local and foreign actors to fully integrate future regulatory risks as well as potential tensions with some communities impacted by this rapid transformation.