Despite the fact that we have a record average price of apartments in Chisinau - around 1,370 euros per square meter, according to the General Index of the company Acces Imobil, the real estate market in Chisinau continues to grow.
According to the data provided by the IPCBI (Cadastre), in the first nine months of 2024, 11,494 contracts for the sale and purchase of apartments in Chisinau and its suburbs were registered.
The figures show us an increase in the total number of transactions by 8.5%, or 904 more apartments sold in 2024 compared to the same period in 2023.
What is the factor that determined the increase in the number of apartments sold in 2024?
The main factor driving the total number of apartments sold in 2024 is the cheapening of mortgages.
In the first nine months of 2024, 4,721 apartments were sold with a mortgage, 2,585 more transactions compared to the same period in 2023, when we had only 2,136 apartments sold with a mortgage in Chisinau and suburbs.
With the decrease in inflation, commercial banks have cheapened interest rates on mortgage loans, from 14% in the period 2022-2023 to 7-8% in 2024. All those who could not afford to purchase an apartment with cash entered the market taking advantage of much more accessible credits.
Also here, the Prime Home Plus government program should be mentioned, which through much better lending conditions has positively influenced the total number of mortgage transactions on the real estate market.
Forecasts on the Real Estate Market until the end of 2024
In 2023, the General Index Acces Imobil of the average price was 1070 euros/m2 (all types of apartments in new and secondary blocks, with repairs and in the white version are taken into account). At the moment, in the first 9 months of 2024, the General Index Acces Imobil indicates an average price of 1370 euros/m2.
Favorable credit conditions and the small stock of apartments available for sale will contribute to a slight increase in apartment prices in certain segments of the market.
If we will have the same fairly high demand from buyers and the supply will remain unchanged (rather low stock), we can expect an increase in the price of apartments by approximately 50 euros/m2 until the end of this year.
Author: Victor Cernomorcenco, Real Estate Specialist at Acces Imobil.
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