Many Moldovans believe that apartment prices in Chisinau are exorbitant, while in Europe they are similar or even more affordable. This article aims to clarify this widespread perception, using official data provided by Statistica.com. The platform provides verified and detailed information from various fields, including the real estate sector, to provide a realistic picture of the price differences between Chisinau and European cities.
Real estate market in Europe: Constant price growth and housing shortage
The European real estate market is facing a structural shortage of housing, which is driving up prices and rents. Developers are struggling due to high construction costs, limited financing and strict sustainability regulations. Over the past decade, house prices in the EU have increased by 54.1%, and rents by 26%.
In major European cities, demand remains high, and prices are expected to continue to rise in 2024, supported by strong rental demand, especially in the context of high mortgage rates. In some countries, such as Estonia and Hungary, house prices have more than tripled since 2010.
Chisinau real estate market: A different pace of growth
Compared to Europe, the Chisinau real estate market has an equally dynamic growth rate, with apartment prices influenced by similar factors, such as inflation and high construction costs. In 2024, the average price per square meter in Chisinau is 1,540 euros (according to the Real Estate Accessibility Indicator), a significant increase compared to previous years, but still well below the average of major European capitals.
On the other hand, rising mortgage interest rates and falling purchasing power are putting pressure on housing affordability. However, in relation to the average income of its residents, Chisinau remains more affordable than cities such as Vienna, Paris or Berlin, where housing prices have increased rapidly in the last two decades.
Rents and investment returns
In Europe, the rental market is continuously growing, with an average increase of 3.2% in 2024 compared to the previous year. The increase in demand, together with the limited supply, determines a good return for investors who buy housing for rental.
In Chisinau, the rent for a two-room apartment in central areas varies between 400 and 800 euros/month, while in major European capitals this amount can reach 2000-3000 euros/month. The price-to-rent ratio is thus more favorable in Chisinau for those who invest in rental housing, compared to some cities in Europe where the return is lower due to high purchase prices.
Conclusion
The real estate market in Chisinau is quite affordable compared to major European cities. Apartment prices are influenced by the same factors as high demand, purchasing power, construction and repair costs, and the accessibility of mortgage loans.
Source: statista.com, ec.europa.eu
Author: Victor Cernomorcenco, Real Estate Specialist at Acces Imobil.
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