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Everything you need to know is included in our Belarus Property Pack
Are you considering buying real estate in the land of Miracles? Are you unsure when would be the best time to proceed?
People hold diverse opinions regarding market timing. The Belarusian real estate agent you consulted might advise you to buy property now, whereas your relative who actually lives in Minsk may suggest waiting for more favorable market conditions.
At Investropa, when we create articles or update our pack of documents related to the real estate market in Belarus, we base our work on reliable data and statistics, rather than relying on subjective opinions or hearsay.
After thoroughly analyzing official reports and statistics available on government websites, we have gathered solid information in a database. Here are our findings that can assist you in determining whether it's the right time to invest in real estate in Belarus.
Have a nice read!
How is the property market in Belarus now?
Belarus is, today, a relatively stable country
Neutral
Stability should be the first thing you look at when you want to invest in real estate because it reduces risks and provides a secure investment landscape. It is an information you need as a foreigner buying a property in Belarus.
In today's context, Belarus can be regarded as a country that has achieved stability to some extent. The last Fragile State Index reported for this country is 68.7, which is a respectable number.
Belarus is relatively stable today largely due to the authoritarian governance of President Alexander Lukashenko, who has maintained tight control over political opposition and media, ensuring a centralized power structure. Additionally, Belarus benefits from strong economic and political support from Russia, which provides financial aid and energy subsidies, bolstering its stability despite international sanctions and internal dissent.
Let's analyze other data now to assess whether it's a favorable time to purchase property in this country.
Belarus is positioned for growth in the coming years
Positive
Before investing in properties, check if the country's economy is strong enough.
As projected by the IMF, Belarus is likely to finish 2024 with a growth rate of 2.4%, which reflects the country's forward momentum. Regarding 2025, the experts say 1.2%.
On the longer term, the growth will still be there since Belarus's economy is expected to increase by 7.3% during the next 5 years, resulting in an average GDP growth rate of 1.5%.
A moderate growth rate in Belarus suggests a stable economic environment, which can provide a reliable and less risky investment climate for property buyers. Additionally, steady growth often leads to gradual increases in property values, offering potential for long-term appreciation.
That being said, there are other indicators to monitor.
Belarus' population is getting (a bit) richer
Positive
Take population growth and GDP per capita into consideration before you decide to invest in real estate because:
- a growing population means more people needing homes
- a higher GDP per person means people have more money to spend on housing (which can lead to increased property value over time)
In Belarus, the average GDP per capita has changed by 0.8% over the last 5 years. It's not much, but the growth is here.
This means that, if you purchase a centrally located apartment in Minsk and rent it out, you will find that each year, you'll attract more tenants with sufficient funds to cover the rent.
If you're considering purchasing and renting it out, this trend is a good thing. Then, there might be a rise in rental demand in Belarusian cities like Minsk, Brest, or Grodno in 2025.
Rental yields are average in Belarus
Neutral
Now, let's shift our focus to the rental yield.
It's the annual rental income of a property divided by its price. For example, if a property in Belarus is purchased for 500,000 BYN and generates 20,000 BYN in annual rental income, the rental yield would be 4%.
According to Numbeo, rental properties in Belarus offer gross rental yields ranging from 3.0% and 5.7%. You can find a more detailed analysis (by property and areas) in our pack of documents related to the real estate market in Belarus.
It means that your income potential is relatively moderate.
Everything you need to know is included in our Belarus Property Pack
In Belarus, inflation is projected to remain minimal
Neutral
In two words, inflation is when prices soar.
It's when your customary bowl of draniki costs 10 Belarusian rubles instead of 8 Belarusian rubles a couple of years ago.
If you're considering investing in a property, high inflation can bring you several advantages:
- Property values tend to increase over time, potentially leading to capital appreciation.
- Inflation can result in higher rental rates, increasing the property's cash flow.
- Inflation decreases the real value of debt, making mortgage payments more affordable.
- Real estate can act as a hedge against inflation, helping preserve the investment's value.
- Diversifying into real estate provides stability during periods of inflation.
As indicated by IMF projections, over the next 5 years, Belarus will have an inflation rate of 1.0%, which gives us an average yearly increase of 0.2%.
It means that Belarus is expected to have near-zero inflation then. Unfortunately, buying a property now may not lead to significant price increases or high profits in the future.
Belarus's currency is presently low
Positive
If you're a foreign investor, then you might be interested in this.
The Belarusian Ruble (BYN) is devalued: the currency is currently 10-14% over the past five years.
As a foreign investor, purchasing property in Belarus while its currency is low could offer a cost advantage, potentially allowing for a more affordable investment compared to times when the currency is stronger. However, it's crucial to consider the economic and political stability of the region, as fluctuations in currency value can be indicative of broader instability, which might affect property values and the ease of future transactions. Additionally, investors should evaluate the long-term prospects for economic recovery and currency appreciation, as these factors will influence the potential return on investment.
Is it a good time to buy real estate in Belarus then?
Time to conclude !
While Belarus is currently a relatively stable country, 2025 might not be the best time to buy property there due to several factors. Although the economy is expected to grow by 7.3% over the next five years, resulting in an average GDP growth rate of 1.5%, this moderate growth suggests a stable but not necessarily booming market. For property buyers, this means that while the investment climate might be less risky, the potential for significant short-term gains could be limited.
Moreover, the steady economic growth could lead to gradual increases in property values, which might not be appealing if you're looking for quick returns. The moderate growth rate indicates that while there is potential for long-term appreciation, the pace might be too slow for those hoping to capitalize on rapid property value increases. This could make 2025 a less attractive time for investors seeking more dynamic markets.
On the other hand, Belarus' population is getting a bit richer, which could increase demand for property. However, according to Numbeo, rental properties in Belarus offer gross rental yields ranging from 3.0% to 5.7%. These yields, while decent, might not be high enough to entice investors who are looking for more lucrative opportunities elsewhere. The relatively modest rental yields suggest that the rental market might not be as profitable as in other regions.
Additionally, while inflation in Belarus is projected to remain minimal, this stability might not be enough to offset the other factors that make 2025 a potentially less favorable time to invest in property. With a stable but slow-growing economy and moderate rental yields, potential buyers might find better opportunities in markets with higher growth rates and more attractive returns. Therefore, it might be wise to consider other options before committing to a property purchase in Belarus in 2025.
We sincerely hope this article has provided you with beneficial information!. If you need to know more, you can check our our pack of documents related to the real estate market in Belarus.
-Will real estate prices go up in Belarus?
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.