On February 26th 2020, at Hotel DoubleTree by Hilton Skopje, Cushman & Wakefield | FORTONMKA held its press conference where the real estate market data for the previous year as well as the expectations and trends for 2020 were presented.
HIGHEST NUMBER OF BUILDING PERMITS FOR RESIDENTIAL UNITS ISSUED IN AERODROM – 1.542, MOST EXPENSIVE PRICE IN CENTAR MUNICIPALITY- NET AVERAGE OF 1.062 EURO PER SQ.M.

During 2019 in City of Skopje 3.191 building permits for residential units were issued, of which largest number of building permits – 1.542 were issued by Aerodrom Municipality followed by Centar Municipality, where 398 building permits were issued. These numbers on issued building permits in the capital during the last year were published on today’s press conference by FORTONMKA, a consultant company for commercial real estate and independently operated affiliate of Cushman & Wakefield, the world’s largest privately owned commercial real estate advisory company. 2019 Real Estate Market Overview was presented, as well as the expectations for 2020 in the residential, office, retail and industrial market segments.

As to the residential segment, the net average prices (VAT excl.) per square meter in Skopje is highest in Centar Municipality and amounts to net 1.062 euro/ m2, followed by Karposh Municipality – 1.022 euro/ m2, Aerodrom – 909 euro/ m2, Kisela Voda – 884 euro/m2, Chair – 790 euro/ m2 and Gjorche Petrov with average of 780 euro/ m2. The market dictates the type of residential units as well where most desired are residential units with smaller area ranging from 36 m2 to 52 m2 and from 53 m2 to 67 m2. According to the data for the last two years, the number of sold apartments in the main municipalities Center and Karposh is higher than the number of planned residential units same period, which means that the prices in these municipalities may increase if the moratorium does not stop. Otherwise, if new building permits are issued, prices will remain stable.
“Traditionally the residential market in the Macedonian capital is stable and entrusting for potential investors. It is supported by the decreased interest rates of residential loans, as well as the relaxed conditions of bank landings. Several banks have already promoted new terms on residential loans with a 10-year fixed interest rate”. In North Macedonia, the average interest rates for household loans decreased from 4.89 % in 2018 to 3.98 % in 2019. Average interest rates with FX clause for 2019 was 4.33%, decreased by 0.03pp on yearly bases. says, Vlatko Bogoevski, CEO of FORTONMKA
In this commercial real estate consulting company, the office real estate market is considered stable and most active are the local and already existing companies. New projects, expected in 2020 will increase the total stock of office space nearly ten percent (for 27.800 m2) but rents will remain stable and at current level. Rent prices range between 11 and 15 euros/ m2 for Class A office space in Central Business District and between 9 and 11 euros/ m2 for Class A office space in other parts of Skopje. Whereas for Class B office space rents are set at 7-10 euros/ m2 in the Central city area and 5-7 euros/ m2 in the other city locations. Return time of investment in office space is 11.5 years. The market registers increased interest and need for investment in “build-to-suit” projects concepts according to specific requests and needs of a potential tenants. Skopje East Gate project shall offer modern office space based on the “build-to-suit” concept with total net area of 60.000 m2, allocated in 5 towers, – say FORTONMKA consultants.

“With 0 percent available space of total retail space of 105.157 m2 in shopping centers/malls, the City of Skopje is in large need of this type of retail objects. The largest project of this type in the country and the “new generation mall” is going to be East Gate Mall, with net leasable area of 56.800 m2, which is planned to be built and delivered on the market by H1 2021. Several new brands announced decisions to enter the market with their first flagship locations in East Gate Mall, counting over 40% of total retail area. With increasing of investors’ interest for new developments, the first retail park project in Skopje “Point Retail Park “was opened in July 2019. The lack of new retail formats, especially in the secondary cities outlines opportunities for potential developers as these cities are in need of modern retail space. As to rent prices of retail space, they are stable and amount to 39 euro/m2 on main locations in shopping malls and 30 euro/m2 for retail space in high street zones. Due to record low percent of available space in shopping centers we expect rise in rent prices. Time for return on investment for retail space in 11 years pointed out Bogoevski.

FORTONMKA points out that the industrial market in 2019 registers continuous growth in new stock delivery, as well as in number and size of projects in pipeline, 50% in comparison to 2018 in manufacturing and logistics. Therefore, new manufacturing facilities dominate the new supply with 73% stake, or 51,000 m2, and logistics facilities with 27% or 18,500 m2. Vacancy may decrease significantly in the upcoming period if the market creates demand similar to that of 2019, when take-up for logistics facilities greatly increased in comparison to 2018. In regards to industrial development by regions, Skopje accounts for 84% of the total new delivery in 2019. In spite to location preferences, Skopje shall remain to attract greater stake of FDI due to accessible pool of qualified personnel and excellent individual and freight transportation connections.
“Investment market provides positive signals and trust for the upcoming period. Still, the return on investments rate are well behind those in the regional centers in Serbia, Bulgaria and Romania, such as Belgrade, Sofia and Bucharest”, conclude in FORTONMKA.