In the first half of 2023, the real estate market in Chisinau continued to be a balanced one and apartment prices practically did not change.
At the moment, on the one hand, we have quite a large deferred demand, a good part of the buyers are still thinking whether to buy now or wait. On the flip side, owners who are truly motivated to sell are forced to drop their prices and accept offers lower than their expectations.
At the moment we have the following prices for apartments:
- 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.
It is important to emphasize that the prices mentioned are average values and that the evaluation of the price of a property is a complex process based on more than 40 distinct criteria. Among them, there are fundamental aspects such as the location, the age of the building, the type of construction, the series of apartments in the old buildings and the construction company in the case of new buildings.
Aspects such as the number of rooms, the useful surface of the building, its layout, aspects related to ergonomics, the level of the floor where it is located, as well as the general quality of the repair are also taken into account. All of these factors come into play in the price assessment process and are essential in determining the correct value of a property in the real estate market.
Where is the real estate market headed?
To understand where the real estate market will go, whether apartment prices will go down or up in the near future, we need to see what impact the following key factors will have on the real estate market:
- The war in Ukraine: One of the major factors influencing the real estate market in Chisinau in recent times has been the armed conflict in Ukraine. Concerns about regional instability and possible economic implications have led to investor reluctance, leading to a moderate rise in real estate prices. Many of those who could have invested in real estate projects preferred to wait for a more stable period, thus generating relatively low demand compared to supply, which kept prices at a moderate level.
- Decreasing inflation: In the first half of 2023, the Republic of Moldova recorded a decrease in the inflation rate, which was a positive aspect for the real estate market in Chisinau. Lower inflation means that the purchasing power of the population can be maintained and general price increases can be kept under control. This has helped to maintain a relatively stable demand in the housing market, thus supporting property prices to some extent.
- Cheaper mortgage loans: Banks in the Republic of Moldova have started offering mortgage loans with lower interest rates. The increased affordability of mortgages has made purchasing property easier for more people. This will boost demand for apartments, thus keeping demand relatively balanced with supply, which will help keep prices at a stable level.
CONCLUSION
In the first half of 2023, the real estate market in Chisinau started to thaw. The demand delayed by the war in Ukraine and expensive mortgages started to be less pronounced.
Apartment prices have remained relatively stable, thanks to the balance between supply and demand. For the rest of 2023, the real estate market in Chisinau will continue to be influenced by economic and geopolitical developments, but the outlook for price stability remains generally optimistic, with the potential for them to increase slightly following the return of investor confidence in the area.
Author:
Victor Cernomorcenco, Real Estate Specialist within the Acces Immobil company.
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