Moldova's housing market heats up: What buyers and renters need to know
The Moldovan real estate market is experiencing a period of intense activity. Industry experts anticipate a rise in apartment prices by the end of the year.
Victor Cernomorcenco, a real estate specialist, stated on the "Good Morning" program on Moldova 1 that the average price per square metre reached a historic high last year. Concurrently, there is a growing demand for apartments purchased through mortgage loans. This surge is attributed to decreasing interest rates, which is encouraging those who previously delayed purchases due to insufficient funds to enter the market.
"Last year, only 20% of apartment sales were financed through mortgages," Cernomorcenco explained. "However, with the decline in mortgage interest rates, nearly 40% of all apartments sold this year have been purchased with mortgage loans. Despite the record-high price of 1,350-1,370 euros per square metre, those who postponed buying due to a lack of funds have now begun to enter the market."
Cernomorcenco contends that the price per square metre could continue to rise until the end of the year.
"The average price per square metre in 2023 was 1,070 euros," he elaborated. "From last autumn until this past spring (March-April), prices climbed. We then reached a plateau at this historic high. While the price has remained stable thus far, the inventory of available apartments is dwindling. This suggests that the price will likely increase by approximately 50 euros per square metre by the end of the year."
Cernomorcenco also noted that while rental prices are high, they have plateaued, largely due to agreements between landlords and tenants. Experts generally agree that the real estate market is influenced by macroeconomic conditions such as inflation, unemployment rates, and political stability. These factors can impact both the demand for and the supply of properties.
Translation by Iurie Tataru
