In 2023, 1,545 houses were sold in Chisinau and its suburbs, with 0.8% fewer sales transactions than in 2022.
If we analyze the last 7 years of the real estate market, we can see that in the last two years we have practically the same number of houses sold in Chisinau. At the same time, if we compare with the year 2021, when we had a historical maximum of houses sold (2039 houses), we have a decrease in the number of transactions in this segment by approximately 24%.
The demand for houses in Chisinau and suburbs has increased Three years in a row in 2019, 2020 and 2021.
The factors that contributed to the increase in demand in the house segment were:
- affordable loans (much more advantageous conditions - the first rate and much lower interest rates),
- the Covid 19 pandemic that trapped Moldovans in their apartments
- "real estate fever" when all Moldovans were looking to buy a house on the ground or a townhouse with a small yard in Chisinau or the suburbs.
The war in Ukraine that started in 2022, the unprecedented inflation of 35% and the increase in the price of mortgages were the causes that diminished the desire of Moldovans to invest in real estate, including the segment of houses on the ground.
Analyzing the statistics of houses sold through mortgage loans in Chisinau in recent years, we can see how the cheapening of loans and the simplification of the conditions for granting mortgage loans have influenced the number of sales-purchase transactions. Everyone who couldn't afford to buy a house with money down started entering the housing market in 2018-2019.
Subsequently, we can see a constant decrease in the number of loans granted in 2020 and 2021, even if the total number of transactions in this segment continued to increase. Which makes us believe that the Moldovans took a lot of money out of their pockets in these years, buying cash houses in Chisinau and the suburbs.
CONCLUSIONS AND TRENDS
Moldovans have bought houses in Chisinau and the suburbs with cash in recent years. More and more can afford to move from an apartment to a house, an indicator that part of the population has much higher incomes.
The war in Ukraine, the panic and the economic and social imbalance that followed decreased the demand for this segment. In the last 2 years we have approximately 24% fewer homes sold compared to 2021.
The total number of houses sold in the coming years could increase with the improvement of infrastructure in the suburbs, if resources are invested in engineering networks (water, gas, sewerage), roads and access roads are built (Chisinau belt), it will be improved road and public transport infrastructure (people should not be dependent on their personal car as it is now) etc.
Author:
Victor Cernomorcenco, Real Estate Specialist within the Acces Immobil company.
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