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What will happen in Belarus’s real estate market? Will prices go up or down? Is Minsk still a hotspot for foreign investors? How is Belarus’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Belarus, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Property prices will dip slightly as the Belarusian population grows more slowly
Belarus is seeing a drop in population growth, with a decrease of -0.54082% in 2023.
Fewer people means less demand for housing, which could lead to a dip in real estate prices. The net migration rate also fell by 27.5% from 2022 to 2023, showing that not many new residents are moving in to boost housing demand.
In cities, housing demand is still there, but it's shaped by economic and social factors. Meanwhile, rural areas are seeing more population decline, which might lead to a surplus of housing that could affect urban prices.
Belarus's economy is expected to slow down in 2024-2025, which might mean less investment in real estate. This economic trend could further push real estate prices down.
Historically, when population growth slows, demand for housing drops, leading to a surplus in housing supply. This pattern seems to be repeating in Belarus.
Sources: Population Data, Net Migration Rate, Economic Forecasts
2) Demand for retirement-friendly housing in Belarus will increase as the population ages
Belarus is seeing a demographic shift with an aging population driving up the demand for retirement-friendly housing.
People in Belarus are living longer, with life expectancy jumping from 58.6 years in 1950 to 74.6 years in 2024. This increase means more elderly folks are around, and they need places to live that suit their needs. The longer life spans are a big reason why the older population is growing.
At the same time, fewer babies are being born in Belarus. The Total Fertility Rate is below the replacement level of 2.1, which means the younger population is shrinking. By 2038, the number of people aged 60 and above is expected to rise from 22% to 29%, showing a clear increase in the elderly demographic.
The government is aware of these changes. They've got plans like the UNECE's Road Map for Mainstreaming Ageing in Belarus and the National Strategy “Dignified Longevity – 2030.” These initiatives are all about tackling the challenges and seizing the opportunities that come with an aging population, including the need for more senior-friendly housing.
For those considering buying property in Belarus, this shift means there could be a growing market for homes that cater to older residents. Investing in retirement-friendly housing might be a smart move as the demand is likely to increase.
Understanding these trends can give you an edge in the property market. With the elderly population set to grow, the need for suitable housing options will only become more pressing. Keep an eye on these developments if you're thinking about investing in Belarusian real estate.
Sources: Worldometers, Earth Database, World Bank, UNECE
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Belarus versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) More foreign investors will enter Belarus’s real estate market due to increased government incentives
Foreign investors are increasingly eyeing Belarusian real estate as a promising opportunity.
In recent years, foreign direct investment in Belarus has seen a notable rise, climbing from $1,634.9 million in 2023 to $1,973.6 million in 2024. This uptick signals a growing confidence among international investors in the Belarusian market. The government is keen to capitalize on this interest by rolling out a series of enticing incentives.
Among these incentives are investment contracts offering extra guarantees and privileges, making the process smoother and more secure for foreign buyers. Additionally, the introduction of "investment agents" is a strategic move to connect potential investors with lucrative opportunities, further simplifying the investment journey.
Looking ahead, the residential real estate market in Belarus is set to expand by 3.90% from 2024 to 2029. This growth is fueled by a combination of modern property preferences and government-backed home ownership initiatives. Such dynamics make Belarus an appealing destination for those seeking to invest in real estate.
For those considering a move, it's worth noting that Belarus offers a blend of modern living and investment potential. The government's proactive stance in creating a favorable investment climate is a significant draw for international buyers.
With these developments, Belarus is positioning itself as a hotspot for foreign real estate investment, offering both security and growth potential. The combination of rising investment figures and government incentives paints a promising picture for the future.
Sources: Economy of Belarus, Belstat, Statista
4) More Russian citizens will buy property in Belarus for stable investments
In 2024, Russian citizens bought 4,008 apartments in Belarus, a 20% increase from the previous year.
The real estate market in Belarus, especially in Minsk, is buzzing with activity. New buildings are popping up to cater to the growing demand from both locals and expatriates. This makes Belarus a hot spot for Russian investors eager for fresh opportunities.
Belarus has some friendly property laws for foreign investors. Russians can own residential properties without any hassle, although land ownership is limited to leasing for up to 99 years. This straightforward process, with no minimum investment required, makes it easy for Russians to dive into the Belarusian real estate scene.
Even with economic hiccups due to Western sanctions, Belarus has managed to stay relatively stable, thanks in part to Russian support. This stability, compared to its neighbors, makes Belarus a safe bet for Russians looking for a secure place to invest.
Belarus and Russia have deep historical and cultural ties, offering a sense of comfort and familiarity for Russian investors. This cultural connection makes Belarus a natural choice for property investment.
With geopolitical tensions, especially around Russia's actions in Ukraine, many Russians are looking to diversify their investments. Belarus, with its close ties to Russia, is likely to be a top pick for these investors.
Media reports have painted Belarus as a stable investment destination despite political challenges, drawing in Russian investors who want a secure place for their money.
Sources: Aparthotel.com, Aparthotel.com, OSW Commentary
5) Short-term rental demand in Belarus will grow as tourism increases
Belarus is becoming a hot spot for tourists, with 233,128 visitors in 2023, a big jump from the previous year.
Social media is buzzing with posts about Belarus, and this online chatter is drawing even more travelers. People love sharing their adventures, and this trend is pushing up the demand for short-term rentals, as visitors look for unique places to stay.
The Belarusian government is all in on boosting tourism. They've been rolling out initiatives like the Oziory Visitor Center and investing in ecotourism, making nature reserves more appealing. These efforts have paid off, with a 30% increase in trips sold and nearly double the tourist numbers compared to 2021.
With more tourists flocking in, the rental market is seeing a shift. Short-term rentals are becoming more popular, catering to the influx of visitors who want a more personalized experience. This trend is likely to continue as Belarus keeps attracting international attention.
For those considering buying property in Belarus, this surge in tourism and the growing demand for short-term rentals could be a golden opportunity. The market is ripe for investment, especially in areas popular with tourists.
Sources: Trading Economics, Journal of Education, Health and Sport, UNDP Belarus
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6) Belarusian rental prices will rise as urbanization drives more people to cities
Urbanization in Belarus is a key factor driving rental prices upward.
In cities like Minsk, there's a high demand for rental properties, with many people applying for both new and used apartments. This shows a strong preference for city living. The government is also pushing to build more rental housing, which highlights the growing need for urban accommodation.
People are moving from rural areas to cities, leading to a decline in the rural population and more people living in urban areas. This shift is boosting the demand for city housing. As infrastructure develops, it supports the increasing urban population.
Sources: CEIC Data, Eurasian Research, Belarus.by
In this video, we can see that one-bedroom apartments in Minsk now rent for approximately $400-500 per month for long-term leases, reflecting ongoing urbanization and demand in the capital.
7) Buyers will prefer newer, eco-friendly homes as stricter environmental rules raise costs for older properties
Stricter environmental regulations are reshaping the real estate market in Belarus.
In recent years, the Belarusian government has ramped up efforts to minimize environmental impacts, focusing heavily on older properties. The Ministry of Natural Resources has been busy, issuing thousands of environmental assessment reports on these older homes. Many of these properties, built without modern eco-friendly standards, are now facing the financial burden of compliance. For example, older multi-apartment buildings often lack proper thermal insulation, leading to significant heat loss and higher energy consumption.
Owners of these older homes are finding themselves needing to invest in costly upgrades. These include adding thermal insulation and installing advanced heating controls. Such improvements are not cheap, and the financial strain is pushing many buyers to consider newer properties. These newer homes are typically constructed with eco-friendly materials and technologies, making them more appealing to those interested in sustainability.
There's a noticeable shift in buyer preferences towards eco-friendly homes. Surveys indicate a growing interest in sustainable living, with many buyers prioritizing properties that align with these values. This trend is not just about being environmentally conscious; it's also about long-term savings. Newer homes, designed with energy efficiency in mind, often result in lower utility bills and reduced environmental impact.
As the cost of upgrading older properties continues to rise, the appeal of newer, eco-friendly homes becomes even more pronounced. Buyers are increasingly aware of the benefits of these modern homes, from reduced energy costs to a smaller carbon footprint. This shift is not just a trend but a reflection of a broader societal move towards sustainability.
In Belarus, the real estate market is clearly feeling the impact of these environmental regulations. The push for sustainability is not only changing buyer preferences but also influencing the types of properties being developed. As stricter regulations continue to be enforced, the demand for newer, eco-friendly homes is expected to grow, leaving older properties struggling to keep up.
Sources: Ministry of Natural Resources, World Bank, National Association of REALTORS
8) Virtual reality will transform home viewings, allowing buyers to explore properties remotely more easily
Virtual reality (VR) is changing how we view properties, making it super easy to check out homes without leaving your couch.
Back in 2023 and 2024, the buzz around VR in real estate was huge, with its market value expected to hit $2.6 billion by 2025. This boom was thanks to more realtors jumping on the VR bandwagon—about 77% were already using it, and many others were eager to give it a shot.
Buyers, especially the younger crowd, are loving this tech. Surveys showed that 67% of home buyers preferred listings with virtual tours. Young adults, aged 18 to 34, were particularly keen, being 130% more likely to book a property if it had a virtual tour. Clearly, VR is a hit with millennials and Gen Z.
Thanks to tech advancements, VR is now more accessible and affordable, letting you tour homes and chat with agents from anywhere. The mix of AI with VR has made these tours even better, offering a more personalized and data-driven experience. This means fewer wasted viewings, with virtual tours cutting them down by 40%.
Potential buyers are spending way more time on websites with virtual tours, sometimes 5-10 times longer. This shows how engaging and useful these virtual experiences are, making the home-buying process smoother and more efficient.
Sources: PhotoUp, EZ Real Estate Tools, Market.us
We have made this infographic to give you a quick and clear snapshot of the property market in Belarus. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Property prices in Grodno will rise as it becomes a more popular tourist destination
Grodno's real estate market is set to thrive thanks to its rising status as a tourist hotspot.
In 2023, Belarus saw a surge in tourists, jumping from 142,993 in 2022 to 233,128 visitors in 2023. This boom in tourism is a clear sign that more people are discovering the charm of Belarus, and Grodno is likely to be a key beneficiary. The increase in short-term rental listings often mirrors this trend, suggesting that Grodno could see a similar rise, pushing property prices up.
Grodno's appeal is further enhanced by the renovation of its historical sites, like the Grodno medieval castle. These projects not only draw more tourists but also boost local property values. When historical sites get a facelift, they become magnets for visitors, which in turn benefits the local real estate market.
In early 2024, Belarus recorded the sale of about 4,008 apartments, a 20% increase from the previous year. This uptick in the housing market is a promising sign, especially for areas like Grodno, where the tourist industry is on the rise. New real estate projects aimed at tourists could further drive up property prices, even if specific developments aren't mentioned yet.
As Grodno continues to attract more visitors, the demand for accommodation is likely to grow. This demand can lead to the development of new properties, which often results in higher property values. The overall trend in Belarus suggests that Grodno is on the cusp of a real estate boom, driven by its newfound popularity among tourists.
Sources: Trading Economics, Aparthotel.com, European Commission
From this video, we realize that Grodno has become an attractive location for property investment, supported by new developments and increasing tourist interest.
10) Rental yields in Minsk will rise as more international students move to the city
Minsk is becoming a hotspot for international students, thanks to Belarus's efforts to promote its education sector.
With more students arriving, the demand for student housing in Minsk has skyrocketed. Many students are on the lookout for comfort-class apartments in trendy neighborhoods, which has caused a noticeable uptick in the rental market.
As a result, rental prices are climbing, especially in student-favored areas. This trend is a golden opportunity for property investors looking to tap into the growing student population.
The Belarusian government is making it easier for foreign students to study in Minsk by simplifying the visa process. This, along with new international academic programs, is turning Minsk into a budding educational hub.
These initiatives are not just attracting students but also boosting the demand for rental properties. Investors can expect a promising yield on rental properties as the city continues to draw more international students.
With Minsk's evolving status as an educational center, the rental market is poised for growth, making it an attractive option for property buyers.
We believe this video illustrates how Minsk attracts international students, leading to a demand for affordable rental properties, with prices ranging from $250-400 monthly.
11) Rental yields in regional cities will drop as people move to the capital for jobs
People are flocking to Minsk for better job opportunities.
In Belarus, nearly half of the internal migration is towards the capital, Minsk. This trend is driven by young, working-age individuals seeking employment and improved living conditions. Minsk's appeal lies in its consistently low unemployment rate, which is much lower than in other regions.
Regional cities like Viciebsk are facing challenges with population declines and higher unemployment rates. This indicates fewer job opportunities, making these areas less attractive for job seekers. As a result, Minsk becomes the go-to destination for those in search of stable and well-paying jobs.
The influx of people into Minsk is pushing up the demand for housing, leading to higher property prices and rental yields in the capital. This is a natural consequence of more people wanting to live where the jobs are. On the flip side, regional cities are experiencing a decrease in demand for rental properties.
With fewer people looking to rent homes in these regional areas, rental yields are declining. This shift in demand is a direct result of the population moving towards the capital, leaving regional cities with shrinking populations.
Sources: Hungarian Geography, UNECE, Jamestown Foundation
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12) Property values in Vitebsk will rise significantly as it attracts artists and creatives, becoming a cultural hub
Vitebsk is quickly becoming a cultural hotspot in Belarus.
The government is pouring resources into the city, building new art galleries and performance venues to attract artists and creatives. This investment is not just a one-time thing; it's part of a larger plan to make Vitebsk a cultural magnet. As these projects continue, the city's appeal is expected to grow even more.
Vitebsk hosts over 20 major cultural events annually, including the famous Slavianski Bazaar. This lively scene is a big draw for artists, who are also supported by residency programs that invite international talent to live and work in the city. These initiatives are turning Vitebsk into a vibrant community for creatives.
Internationally, Vitebsk is gaining a reputation as a cultural destination. Media outlets are highlighting its rich cultural heritage, which is catching the eye of tourists. This increased attention is likely to boost demand for housing and commercial spaces, pushing property values higher.
As more people discover Vitebsk's cultural offerings, the city is expected to see a rise in tourism. This influx of visitors will likely lead to a surge in property demand, making it a promising spot for real estate investment.
With its growing cultural scene and international recognition, Vitebsk is poised to become a thriving hub for artists and creatives. This transformation is set to have a positive impact on property values, making it an attractive option for potential buyers.
Sources: Vitebsk City, The Jewish Museum, Vitebsk Region
13) Rents in smaller towns will drop as young people move to cities for better opportunities
Younger generations in Belarus are flocking to larger cities in search of better job opportunities.
In cities like Minsk, the booming IT sector is a major draw for young professionals, pulling them away from smaller towns. This migration trend is reshaping the demographic landscape, leaving towns like Mogilev with fewer residents despite ongoing development efforts.
As these young people leave, rental demand in smaller towns is dropping. With fewer people looking to rent, landlords are finding it harder to fill vacancies, leading to a decline in rental prices.
Demographic studies highlight that smaller towns are aging as the youth head to urban areas. This shift not only impacts the rental market but also stifles economic growth, making it tough for these towns to attract new businesses and investments.
With a dwindling young population, smaller towns face economic challenges that further drive down rental demand. The lack of vibrant, youthful communities makes it difficult to sustain local economies.
As a result, rents in these areas are likely to continue declining, reflecting the broader demographic and economic shifts happening across the country.
Sources: Macrotrends, Miensk Urban Space, OSW Commentary
14) Luxury property yields will drop as demand moves to more affordable homes
In Belarus, the housing market is shifting towards more affordable options.
The government is ramping up the construction of rental housing, with 745,000 m² set to be built by 2024. This new development represents about 2.5% of the total housing stock, highlighting a clear demand for budget-friendly homes. The focus on affordable housing is evident in the government's ambitious plan to build 4.3 million m² of housing in 2023, with a significant chunk dedicated to rentals.
Belarusians are increasingly leaning towards affordable housing, a trend supported by government initiatives. The push for rental housing is not just about numbers; it's about meeting the needs of a population that is prioritizing cost-effective living spaces. This shift is a response to the economic landscape, where moderate growth of 7.3% over the next five years suggests that incomes might not rise fast enough to justify luxury property investments.
As the economy grows at a steady pace, the gap between income levels and the cost of luxury properties could widen. This means that luxury homes might become less attainable for many, pushing more people towards affordable housing. The demand for luxury properties is likely to decrease as more Belarusians opt for practical and budget-friendly living solutions.
For potential buyers, this trend indicates that the yield on luxury properties might not be as lucrative as before. With the focus shifting to affordable housing, investing in luxury real estate could mean facing a market with dwindling demand. The government's commitment to affordable housing is reshaping the market dynamics, making it crucial for investors to consider these changes.
Sources: Belarus.by, Belarus.by
We made this infographic to show you how property prices in Belarus compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Belarus’s real estate market will get a boost from new tax incentives for first-time homebuyers
In 2023, the Belarusian government rolled out new tax incentives for first-time homebuyers.
These incentives, part of Law No. 230-Z, aim to make buying a first home more appealing and affordable. By tweaking the tax code, the government hopes to boost home ownership among new buyers. This move is expected to stir interest and activity in the real estate market.
While we don't have exact numbers from Belarus, similar initiatives in other countries, like Russia, have shown promising results. There, government-backed mortgage schemes have significantly increased mortgage applications. It's reasonable to expect a similar trend in Belarus, with more people likely to apply for mortgages.
The Belarusian Residential Real Estate market is on the rise, with a projected value of $384.30 billion by 2024. This growth is largely driven by government policies, including these new tax incentives. Such measures are making home ownership more attractive, encouraging more people to consider buying property.
These tax benefits are not just a financial perk; they are a strategic move to stimulate the real estate market. By making it easier for first-time buyers to enter the market, the government is fostering a more dynamic and accessible housing sector.
As the market continues to grow, these incentives are likely to play a crucial role in shaping the future of Belarusian real estate. The positive trajectory suggests that more people are being drawn to the idea of owning a home, thanks to these government-backed initiatives.
Sources: Regfollower, Statista, The Moscow Times
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.