Micro-Apartments in North Macedonia: An Affordable Solution

Published on October 3, 2025 and written by Cyril Jarnias

Facing growing demand for affordable housing in a tense economic context, micro-apartments are emerging in North Macedonia as a relevant solution for tight budgets. These compact living spaces not only offer a financially viable alternative but also provide an innovative response to the challenges of increasing urbanization and reduced available space in major cities.

While maximizing the use of every square meter, these modern dwellings promise to redefine urban living, while appealing to an audience eager to minimize ecological footprint.

Expansion of the Microliving Concept in North Macedonia

The rise of microliving in North Macedonia is primarily observed in urban areas, with notable concentration in Skopje, the capital and only city with over 75,000 inhabitants. This trend responds to urban population growth and the need to optimize available spaces, as urban density steadily increases.

Real estate developers and investors see considerable economic potential in micro-apartments:

• High profitability per square meter
• Growing demand among young professionals, students, and single individuals
• Low maintenance costs
• Rapid tenant turnover

This market is particularly attractive due to:

• A high occupancy rate in central neighborhoods
• The possibility of offering competitive rents while maximizing rental yield

Economic Factors	Impact on Microliving
Increase in land cost	Encouragement to build smaller
Rapid urbanization	Rising demand for small housing
Attractiveness to investors	Increased development of microliving offerings

On the regulatory side, the government has implemented certain policies that could influence this expansion:

• Occasional tax incentives favor investment in new residential real estate intended for young professionals.
• However, regulations exist regarding the minimum legal housing size, which can sometimes hinder supply if these standards are not adapted to current economic or social realities.
• Some municipalities are currently considering a temporary or targeted relaxation of minimum thresholds to encourage architectural innovation.

The market is experiencing measurable growth:

According to the latest available statistics, the number of permits issued for apartments under 35 m² increased by approximately 18% between 2023 and 2025. Several recent projects in Skopje show an occupancy rate exceeding 95% upon delivery.

Concrete examples:

• The “City MicroLoft” complex inaugurated in early 2024 in the city center offers nearly 120 units, all rented within six months of opening.
• In Bitola, a pilot project dedicated to students saw reservations exceed its capacity even before completion.

Social and cultural challenges related to microliving remain significant:

• Necessary psychological adaptation to living in less space (sometimes less than 25 m²)
• Increased need for shared common spaces (collective laundry, coworking)
• Perceived risk by some residents regarding quality of life or privacy

Public perception is gradually evolving thanks to the following initiatives:

• Municipal campaigns informing about ecological benefits (reduced energy consumption),
• Regular organization by some developers of open house days, allowing the public to experience these new spaces,
• University partnerships conducting sociological studies aimed at deconstructing prejudices associated with urban minimalist lifestyles.

Finally, although some segments remain attached to traditional family models – often synonymous with larger spaces – there is growing acceptance of the concept among mobile urban generations who prioritize flexibility and proximity to their workplace or university.

Investing in a Studio: The New Eldorado for Tight Budgets

Purchasing a studio in North Macedonia presents numerous economic advantages, particularly for investors or first-time buyers with limited budgets.

Financial Accessibility

The average price for a studio rental is around €214 per month in the suburbs and €305 in the city center. These amounts remain significantly lower than those in most European countries, making property access more affordable for a wide audience. In provincial areas (Ohrid, Bitola, Tetovo), it is possible to find studios between €150 and €250/month.

Comparison with Larger Apartments:

Housing Type	City Center (€/month)	Other Cities (€/month)
Studio / 1 room	200 – 300	150 – 250
2-bedroom apartment	300 – 450	200 – 350
3-bedroom apartment	400 – 600	300 – 450

• Reduced initial cost:
  • Lower price per square meter
  • Proportionally lower notary fees and taxes
• Controlled maintenance fees:
  • Reduced monthly rental charges (electricity/water/heating between €50 and €100/month)
  • Moderate annual home insurance (approximately €100/year)
• Attractive rental yield:
  • Strong demand for small spaces in major university or tourist cities like Skopje or Ohrid
  • High occupancy rate due to rent accessibility for young professionals, students, or tourists
  • Possibility of seasonal rental with higher yield in certain markets

Recent Real Estate Market Trends:

• Studios currently benefit from growing demand linked to increased urban mobility and tourism development.
• Prices have remained stable despite a gradual increase in demand in urban centers.
• Monetary fluctuations have had little impact on local prices expressed in Macedonian denar.

Positive Social and Urban Impact

The construction and increased supply of studios meet urgent affordable housing needs in metropolitan areas. They enable:

• Combating the housing shortage without further artificial land use.
• Offering a flexible solution for young workers or students seeking independence quickly.
• Encouraging reasoned urban densification, facilitating access to public services without significantly increasing pressure on existing infrastructure.

In summary, the studio is establishing itself as a smart investment compared to larger apartments thanks to its reduced costs, high rental profitability, and ability to satisfy both social and economic demand.

Micro-Apartments: An Economic Response to Modern Needs

Definition and Characteristics of Micro-Apartments

A micro-apartment is a dwelling whose living area is generally less than 30 m², sometimes even under 20 m² in some major cities. Internationally, they often fall below the threshold of 500 square feet (approximately 46 m²), but in Central and Eastern Europe, this area tends towards 18–28 m². The main architectural features that optimize these small spaces include:

• Multifunctional furniture (fold-away beds, built-in storage)
• Open spaces without unnecessary partitions
• Exploited ceiling height with mezzanines or high storage
• Maximum use of natural light to visually enlarge the space
• Frequent presence of common spaces in the building: shared lounge, rooftop terrace, or gym

“Since every room in the micro-apartment is used daily… it is necessary that everything is well-organized and that every object has a specific purpose”

From a real estate sector expert

Economic and Social Context in North Macedonia

In North Macedonia, several economic factors are pushing towards more compact housing:

• Rapid urbanization around major centers like Skopje, Bitola, or Ohrid
• Continuous increase in the average price per square meter in central neighborhoods
• Limited incomes among young professionals and students who struggle to access traditional apartments
• Growing need for affordable solutions to address the urban housing shortage

The monthly cost of a studio or one-room apartment in the city center ranges between €200–300 per month, which remains low compared to Western Europe but represents a significant financial effort for a substantial portion of local households.

Economic Advantages of Micro-Apartments

The main economic benefits offered by these dwellings are:

Increased Financial Accessibility:

• Reduced rents suitable for tight budgets (students/young professionals)

Overall Reduction in Charges:

• Lower energy bills due to small heated/cooled area

Administrative Simplicity:

• Less expensive in terms of home insurance (~€100/year)

This model therefore directly addresses the housing crisis observed in Macedonian urban centers where demand far exceeds supply.

Impact on Modern Lifestyle

Micro-apartments perfectly adapt to contemporary requirements:

• Promote mobility and flexibility, ideal for people frequently working away from home or changing cities often
• Encourage a minimalist lifestyle – less material clutter
• Offer enhanced connectivity via affordable high-speed internet (€15–25/month)
• Often integrate direct access to shared services: communal laundry, coworking space…

“This type of housing offers more than just a place to sleep: it’s a whole ‘connected urban’ lifestyle that particularly appeals to Generation Z”

Comparison with Global Trends

Aspect	North Macedonia	Japan/Korea	Canada/France
Typical Size	18–28 m²	Yield and benefits of small spaces in the real estate market

The North Macedonian real estate market is currently experiencing positive dynamics, with rising prices and growing interest in rental investments, particularly in micro-apartments. Recent data indicate an average price per square meter in the city of approximately €1,783 to €1,867, representing an increase of over 5% in one year and a steady upward trend over the past two years.

Micro-apartments present several key advantages for investors:

• Reduced acquisition cost: Purchasing a small space involves a lower initial investment compared to traditional apartments, facilitating market access even for tight budgets.
• High profitability: The average rent in the region stands around €6.37/m², favoring the profitability of small spaces often rented at rates higher per square meter compared to larger dwellings.
• Limited maintenance fees: Less space means fewer charges (heating, general maintenance), thus reducing the total cost for the owner.

Here is a comparative summary:

Criterion	Micro-Apartment	Traditional Apartment
Purchase price (m²)	Lower	Higher
Rental yield (%)	Potentially superior	Average
Maintenance costs	Low	Moderate/high
Expected occupancy rate	High	Variable

Additional advantages of micro-apartments:

• Increased financial accessibility, allowing more investors or first-time buyers to position themselves in the local market.
• Reduced ecological impact thanks to lower energy consumption and optimized use of urban space.
• Adaptation to new urban lifestyles (increased professional mobility, partial telework), thus responding to growing demand among young professionals and students.

A concrete example is observable in the city center where demand remains strong despite the recent increase in price per square meter. Investors can acquire a studio or micro-apartment around 30 m² for approximately €54,000, while their rental quickly generates stable income given the high occupancy rate.

Micro-apartments today constitute a particularly attractive solution in the Macedonian real estate market: low initial cost, good rental profitability, and perfect adaptation to contemporary needs make them appealing to both investors and residents with limited budgets.