Housing Construction Costs in the Republic of Moldova Increased by Approximately 146% Over the Last 10 Years – Among the Highest Growth Rates in Europe

Over the past decade, the construction sector in the Republic of Moldova has undergone one of the most significant transformations in its history. Rising construction material prices, higher wages in the industry, increasing energy costs, and more expensive project financing have substantially changed the cost of developing residential projects.

According to an analysis conducted by Acces Imobil, based on the evolution of official construction price indices, the estimated average cost of constructing a residential apartment building in the Republic of Moldova increased by approximately 146% between 2015 and 2025.

This means that today, building one square meter of residential space costs nearly 2.5 times more than it did ten years ago.

How Does the Republic of Moldova Compare with Europe?

Compared to European Union member states, the Republic of Moldova ranks among the countries with the fastest growth in residential construction costs (2015–2025).

• Bulgaria +166.1%
• Hungary +155.4%
• Republic of Moldova +146.0%
• Romania +130.7%
• European Union Average +48.2%
• Finland +22.1%
• Greece +17.3%
• Italy +17.0%

The analysis shows that the estimated increase in construction costs in the Republic of Moldova is approximately three times higher than the European Union average, surpassed only by Bulgaria and Hungary among the countries included in this comparison.

Why Have Construction Costs Increased So Significantly?

The sharp increase in construction costs is the result of several economic factors acting simultaneously:

• Significant increases in construction material prices, especially during 2021–2022;
• Higher electricity, natural gas, and fuel prices;
• Labor shortages and rising wages in the construction sector;
• Increased transportation and logistics costs;
• Higher financing costs for residential development projects.

Together, these factors have directly increased the cost of delivering every new residential development.

Why Haven't Apartment Prices Fallen Significantly?

Over the past two years, Chisinau's residential real estate market has experienced a substantial decline in the number of transactions. Nevertheless, prices for newly built apartments have not decreased proportionally.

The explanation is straightforward: the selling price of a home is primarily determined by its replacement cost—in other words, the cost of building an equivalent apartment today.

Even in a weaker market, developers must continue to purchase materials, equipment, and labor that are considerably more expensive than they were a decade ago. In addition, modern residential projects require significant investments in infrastructure, engineering, utilities, design, and compliance with increasingly demanding construction standards.

For this reason, the potential for substantial price reductions in newly built apartments remains limited.

Construction Costs and Apartment Prices in Chisinau

During the same period, Chisinau's residential property market also experienced a significant increase in apartment prices.

According to the Acces Imobil Real Estate Index, the average apartment price evolved approximately as follows:

• 2015 - €565/m²
• 2020 - €705/m²
• 2023 - €1,070/m²
• 2024 - €1,540/m²
• 2025 - €1,720/m²

These figures indicate that apartment prices increased even faster than construction costs, driven by strong demand during 2023–2024, inflation, higher financing costs, and a limited supply of new housing.

Methodology

The National Bureau of Statistics of the Republic of Moldova publishes Construction Price Indices, but it does not publish an official average construction cost per square meter of residential buildings.

Therefore, the +146% figure presented in this analysis is an estimate prepared by Acces Imobil, based on:

• the evolution of the official Construction Price Indices published by the National Bureau of Statistics;
• changes in construction material costs;
• increases in labor costs;
• the evolution of residential construction execution costs;
• the methodology used by Eurostat for the Construction Price Index – New Residential Buildings.

The purpose of this analysis is to estimate the evolution of residential construction costs in the Republic of Moldova using a methodology that allows meaningful comparison with European data.

Conclusion

Rising construction costs remain one of the key factors shaping the residential real estate market in the Republic of Moldova. Although the number of transactions has declined in recent years, the cost of developing new residential projects remains high, significantly limiting the potential for major price reductions in newly built apartments.

At the same time, comparison with European Union countries shows that the Republic of Moldova is among the countries with the fastest growth in construction costs over the last decade. This trend continues to put upward pressure on residential property prices and is likely to remain a defining factor for the country's housing market.

Data Sources

• Eurostat – Construction Price Index – New Residential Buildings (construction cost trends across European Union countries).
• National Bureau of Statistics of the Republic of Moldova – Construction Price Indices.
• Acces Imobil – proprietary estimates of average residential construction costs and the Acces Imobil Real Estate Index, which tracks apartment price trends in the Municipality of Chisinau.

Author:

Analysis by Victor Cernomorcenco, Real Estate Market Expert and Representative of Acces Imobil