Apartment prices in Chisinau, but also housing in general, have increased significantly in recent years. There is a perception among Moldovans that these price increases are only in the Republic of Moldova, and this trend does not exist in European countries.
According to an article published by the European Parliament - the increase in house prices and rents is a major concern for many Europeans. Between 2015 and 2023, house prices in the EU increased by an average of 48%.
The main factors that contributed to the increase in house prices are the higher costs for the construction of new blocks of flats, rising mortgage rates, a decrease in new construction that limited the supply, as well as the increase in the purchase of real estate as an investment to generate additional income.
Something very similar to the real estate market in Chisinau… except that we also have very high inflation, the energy crisis and many other factors that have affected the real estate market even more.
The highest increase in housing prices in the period 2015-2023 was recorded in Hungary - 172.5%. It was followed by Lithuania - 114.2%, the Czech Republic - 111.7% and Portugal - 105.8%.
The lowest increase in residential property prices was recorded in Finland - 5.4%.
How did apartment prices increase in Chisinau (2015-2023)?
According to the Acces Imobil Real Estate Index, the average price of apartments increased from 565 euros/m2 in 2015 to 1070 euros/m2 in 2023. We have an increase in apartment prices of 89.3%.
It is true, we have a much higher increase than the European average of 48%, but much lower compared to the countries listed above. We are at a similar level to that of Bulgaria of 86.7%, Slovenia - 86.2% or the Netherlands - 83.3%.
Conclusion
The real estate market is a complex organism and there are many factors that contribute to the increase or decrease in real estate prices. Statistical data shows us that residential property prices have increased in recent years, and the rate of price increase is different from one country to another.
What we need to understand is that real estate prices not only differ from one country to another, but also from one region to another, from city to city within the same country. Real estate prices are dictated by supply and demand, but also by many other socio-economic factors.
Apartment prices in Chisinau, or the real estate market in Chisinau as a whole, has its subtleties.
Chisinau is the only city in the Republic of Moldova that attracts both human and financial capital from both the districts and the diaspora (our citizens working abroad). This “monopoly” has created a constant demand on the real estate market, respectively, has contributed to the increase in real estate prices.
Author: Victor Cernomorcenco, Real Estate Specialist at Acces Imobil.
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