Official statistics show that in the first quarter of 2025, 2884 apartments were sold in Chisinau and the Suburbs, with approximately 28% fewer transactions compared to the same period in 2024.
Housing affordability has become less attractive, and the number of buyers willing to pay in full in cash has decreased compared to previous years.
The number of transactions in the first quarter of 2025 is comparable to the first quarter of 2023, when the real estate market was affected by record inflation of 30%.
One of the main factors that determined the decrease in the number of real estate transactions in 2025 was the sharp increase in prices in 2024, a trend that continued at the beginning of this year.
In 2023 the average price of apartments was - 1070 euros/m2, in 2024 we finished the year with an average price of 1540 euros/m2, and in the first quarter of 2025 the average price exceeded 1650 euros/m2 despite the fact that we have fewer transactions.
Even though the demand on the real estate market remains high (demand exceeds supply by 30%), buyers are postponing their decision to purchase a home, waiting for a correction in apartment prices.
In the first quarter of 2025, we can see that the number of apartments increased by 30% compared to 2024. 1768 apartments were sold by mortgage, which constitutes approximately 61% of the total of 2884 apartments.
In contrast, in the first quarter of 2023, when the annual effective interest rate (APR) was 14%, only 360 apartments were purchased with a mortgage, representing 13% of the total 2,835 available apartments. Due to the high cost of mortgages, most buyers opted for cash payments.
For the first time, in the first quarter of 2025, the proportion of apartments sold with a mortgage reached a remarkable level, representing 60% of all apartments sold in this period.
The average proportion of apartments sold with a mortgage over the past 8 years is 32%. This indicator shows that apartment prices have been quite affordable in recent years, and around 70% of all transactions took place with cash.
Now, however, we can see that things are not the same, practically only 40% of transactions took place with cash in 2025, which tells us that housing has become quite expensive, and citizens are increasingly turning to mortgage loans to purchase a home.
CONCLUSIONThe year 2025 could be one of corrections on the real estate market. Even if it is difficult to make certain predictions, one fact is certain - real estate prices have increased too much compared to the population's income, and the affordability indicator is no longer so attractive.
The exaggerated increase in apartment prices has in turn influenced the increase in the number of apartments sold through mortgage loans (Moldovan people can no longer afford to buy with cash).
Only the most motivated buyers have remained on the market, and their number is decreasing, and this was reflected in the total number of sale-purchase transactions, which decreased by 28%.
Owners who want to sell this year will have to set a fair market price, adjusted to the affordability indicator between the average market price and the average wage in the economy.
Author: Victor Cernomorcenco
Realization of the analysis by Victor Cernomorcenco, specialist in real estate in Chisinau and representative of Acces Imobil.
Disclaimer: The copying, use or distribution of data on the Acces Imobil Real Estate Index is permitted only with the obligation to specify the source and to place an active link to accesimobil.md.
