What is happening on the real estate market in Chisinau? Why have rent prices increased? What are the prices of apartments for sale and how will things evolve in the near future? These questions were answered by our colleague, Victor Cernomorcenco, during the Good Morning show on TRM Moldova 1 television station.
Factors that have contributed to the increase in rent prices
Apartment prices have increased by around 30-40% in the last half year. The factors that contributed to the increase in rent prices are the following:
- increasing inflation by 30% and increasing the prices of apartments for sale
- the wave of refugees from Ukraine due to the regional war
- return of students to studies in Chisinau (seasonal factor)
Average prices for apartments for rent
When evaluating the price of an apartment for rent, several criteria are taken into account, such as: the location and the adjacent socio-economic infrastructure, the condition of the block, the de facto condition of the apartment, but also the external factors listed above.
- 1 room apartment - average price 250-300 euros
- 2-room apartment - average price 300-400 euros
- 3-room apartment - average price 400-500 euros
Are apartment prices in Chisinau equal to those in Europe?
Many people think that apartment prices in Chisinau are the same as those in Europe. From afar it would seem that way, only apartments from cities similar in size are not always compared.
The city of Chisinau is the capital of the Republic of Moldova, all the financial and human flows in the country are concentrated here. If we compare with a similar city in Europe in terms of population size, then we will see that our prices are low compared to these cities.
We cannot compare the prices of apartments in a small town of 50-100,000 inhabitants in Europe and the city of Chisinau, which has around 750,000 permanent residents + another 100-150 thousand people who come to work every day from neighboring districts.
Do Moldovans living abroad invest in apartments in Chisinau?
Our compatriots working abroad invest in real estate in Chisinau. They purchase the apartments for both living and investment purposes. A good part of Moldovans are not found abroad, they accumulate a sum of money and buy apartments in the capital of the Republic of Moldova.
Some are thinking of returning to the Republic of Moldova, but others know that even if they do not return, they will be able to sell these apartments and ensure a better life in retirement or use their capital for other purposes. Investing in real estate being one of the safest investments that can ensure the saving of your capital.
Why do Moldovans choose to invest in real estate in the capital, but not in the districts?
People invest in real estate in Chisinau because it has the best socio-economic infrastructure in the country. The best jobs are concentrated in Chisinau, here are the best kindergartens, schools, universities, but also the best hospitals. Also here we have the most theaters and museums. People invest where they can create a better life for themselves.
What are the predictions for the real estate market until the end of 2022?
There is uncertainty in the real estate market at the moment due to the regional crisis caused by the war in Ukraine, but also due to the global economic crisis. Since the Republic of Moldova is a small country and dependent on external factors, we cannot make certain predictions about what will happen in the near future.
If the regional and global situation improves, apartment prices will rise along with the economy. At the moment, however, we have a reluctance on the part of buyers. They postpone the purchase decision until better times return.
At the moment, however, prices could fall, as they actually do at the moment. In the last 6 months, the average price of apartments for sale decreased by 30 euros per square meter. The largest decrease is in the segment of apartments under construction, with a decrease of 80-100 euros per m2.
However, if we analyze the average price of the apartments put into operation, where the buyer today pays the money and immediately enters to live in it, the prices have increased by an average of 20 euros per square meter.
Conclusion
At the moment, the real estate market in Chisinau is uncertain due to external economic factors. The purchasing decision by buyers is delayed, so only the most motivated buyers are willing to buy during this period. At the same time, sellers who are motivated to sell are forced to drop prices to find a potential buyer.
