Demand on the real estate market in Chisinau has recently increased by 20-30%. However, the prices of real estate for sale have practically not changed.
But still, a specific segment of the market seems to be experiencing slow growth. See further in the article what it is about.
The factors that contributed to the increase in demand on the real estate market
Apartment prices are formed due to demand and supply as well as socio-economic factors in the country and region. Apartment prices are so high because of the concentration of human and financial capital from the districts towards Chisinau.
Even those who go to work abroad also contribute to increasing demand and prices. Our fellow citizens from the diaspora invest in real estate mainly in Chisinau.
At the moment, we have 3 major factors that have contributed to the increase in demand in the real estate market, namely:
- The Diaspora is back on vacation
Demand has increased due to Moldovans who work abroad and have returned home on vacation, and some of them invest in apartments in Chisinau.
Moldovans from the diaspora buy apartments in Chisinau either with the idea of returning home after some time, or to rent them out and earn a passive income.
- Mortgage loans have become cheaper
All those who postponed the purchase of a property last year due to expensive loans have returned to the market. With the decrease in inflation, mortgages became cheaper. The Annual Effective Interest decreased from 14% to 9% in the second half of 2023.
- Panic over the war in Ukraine has subsided.
The panic due to the war in Ukraine has subsided and Moldovans who postponed the decision to purchase a property due to the war have reappeared on the market.
Average prices for apartments in Chisinau
- apartments in old buildings - average price of 850-870 euros/m²
- apartments in new buildings, white version - average price of 900-1000 euros/m².
- apartments in new blocks with euro repair - average price of 1200-1400 euro/m².
Informative note:
Please note that the prices quoted in this context are average values and that assessing the price of a property is a complex process based on over 40 distinct criteria. These criteria include fundamental aspects such as location, age of the building, type of construction, series of apartments in case of older blocks or construction company in case of new blocks.
In addition, aspects such as the number of rooms, the usable area of the building, its floor plan, aspects related to ergonomics, floor, as well as the general quality of the repair are taken into account in the price evaluation process. All of these factors are essential to determining the fair value of a property and significantly influence its final price.
How will apartment prices evolve in Chisinau by the end of 2023?
The only segment that will register an increase this year of 5-7% are the prices of apartments in new buildings, recently put into operation, with qualitative repair and fully furnished (apartments that have not been lived in).
How will apartment prices evolve? It is very difficult to predict. We don't know if mortgages will get cheaper or not until the end of the year. We do not know how the war in Ukraine will develop. We don't know if a new form of Covid will reappear or not.
CONCLUSION
Therefore, if you are a seller and you are motivated to sell, ask for a real market price and hire a professional real estate specialist to represent your interests in the process of selling and buying real estate. If you are a buyer, look at several offers online, then go to the viewings and make as many offers as possible, maybe a little lower than the market price, and you might be lucky enough to get your dream home for a very good price.
Author:
Victor Cernomorcenco, Real Estate Specialist within the Acces Immobil company.
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