After two years of crisis on the real estate market, after we had 40% fewer transactions of sale and purchase of apartments in Chisinau (years 2022 and 2023 compared to 2021), the real estate market in 2024 seems to take on a new soar.
According to the data provided by the IPCBI (Cadastre), in the first six months of 2024, 7,396 contracts for the sale and purchase of apartments were registered in Chisinau and the suburbs, signaling a significant return of buyers to the real estate market.
In the first half of 2024 we have an increase in the number of sales and purchase transactions by approximately 24%, with 1448 more apartments sold, compared to the same period in 2023, when we had 5948 transactions in this segment.
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What influenced the increase of the number of transactions?
This increase is primarily due to better credit conditions. From the statistical data we can see that the number of apartments procured through credit has increased 2.5 times in SEM I 2024 compared to SEM I of 2023. We have an increase of 251% or 2007 more apartments sold by mortgage during this period.
With the decrease in inflation, mortgages have become cheaper from an APR of around 14% in 2022-2023 to an APR of 7-8% in 2024. All those who have postponed the decision to purchase a housing due to lack of financial resources began to rush this year.
Although at the moment we have a historical maximum of the average price of apartments in Chisinau, we can see that the population continues to invest in real estate. (According to the General Index of the Acces Imobil company - the average price for apartments is 1370 euros per 1 square meter).
The increasing number of apartments sold with a mortgage suggests that the real estate market in Chisinau has thawed due to the cheapening of mortgages, and this trend is set to increase with the implementation of the state program Prima Casă Plus.
What's next on the real estate market in Chisinau in SEM II 2024
The cheapening of mortgages and the emergence of the First Home Plus program will further boost the total number of transactions this year. The easier lending conditions (no need for the first installment, lower APR, etc.) and advertising from all the players in the market (commercial banks, real estate companies, etc.) will attract more buyers to the market. The increase in demand will drive not only the increase in the number of transactions, but also the increase in the average price of apartments in Chisinau.
The greatest pressure and price increase will be on the segment of apartments put into operation, with repair, up to the amount of 120,000 euros.
Author: Victor Cernomorcenco, Real Estate Specialist at Acces Imobil.
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