Official figures show that in 2024, 16,141 apartments were sold in Chisinau and its suburbs, with approximately 1,000 more apartments sold compared to 2023.
The growth rate of the number of apartments sold in 2024 compared to 2023 is approximately 6.2%. We can practically observe the same growth trend that we had in 2023 compared to 2022 (5.1%).
Despite all the negative factors in recent times (the war in Ukraine, 30% inflation, the rise in the price of mortgage loans, the energy crisis), we can see that the real estate market is stable and the total number of apartment sale-purchase transactions in Chisinau even records a small increase.
How did mortgage loans influence the real estate market in 2024?
The cheaper mortgages and the launch of the Prima Casă Plus program contributed enormously to the total number of apartments sold and to the increase in prices in 2024.
All those who postponed the decision to purchase an apartment due to lack of financial resources returned to the market, so that the total number of apartments sold through mortgages doubled this year.
In 2024, over 6,800 apartments were sold through mortgages in Chisinau and its suburbs, an increase of approximately 98% compared to 2023. If in 2023 only 22% of apartments sold were through mortgages, then in 2024, this figure increased to 42%!
The accessibility of mortgages was practically the engine of the increase in the total number of transactions.
What is the average price of apartments in Chisinau in 2024?
The average price of apartments in Chisinau has increased by approximately 40% in the last year. If in 2023, the average price was 1070 euros/m2, then in 2024 it amounted to 1540 euros/m2 (all types of apartments in Chisinau are taken into account, new apartment buildings, Soviet-style apartment buildings, renovated or in the white version).
Despite the enormous increase in the average price in 2024, by approximately 470 euros per m2, we can see that the total number of transactions did not decrease, but even registered a small increase.
The lack of stock of apartments for sale and the cheapening of mortgage loans put enormous pressure on the demand for housing. And the result of these two factors led to the fact that the historical threshold of 1500 euros/m2 was exceeded and is continuing to grow.
Where is the real estate market in Chisinau heading in 2025?
It is very difficult to predict where the real estate market will go in 2025.
The National Bank of Moldova has increased the base rate from 3.6% to 5.6% amid rising gas and electricity tariffs. This decision will lead to a reduction in lending volume, a decrease in consumption and a slight slowdown in price growth.
We can expect that the number of apartments sold through mortgage loans will not exceed 20-30% of the total volume of apartments sold in 2025.
The energy crisis and the rise in the price of basic products will negatively affect citizens' budgets. Rising inflation and high costs will significantly reduce purchasing power, and people will focus more on current expenses than on long-term investments.
Author: Victor Cernomorcenco, Real Estate Specialist at Acces Imobil.
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