The number of apartments that have been made available for occupancy this year will be twice lower than last year, Veaceslav Ioniță, economic policy expert of the Institute for Development and Social Initiatives “Viitorul”, anticipated. According to the expert, home loans have increased in volume starring with 2017. The interest rates on loans were accessible and the population’s incomes grew faster than the price of apartments. But apartment sales this year decreased considerably due to the decline in investment volumes.

In 2021, 7,600 persons took out loans to buy a home or to perform repair works. This year, the developments in the first and second quarters were moderate, while the third quarter witnessed a considerable decline. The expert forecasts the year will end with about 4,500 raised loans, IPN reports. 

The average value of a mortgage is €41,500. Last year, the bank interest on mortgage was 6.4% a year, but now the quarterly average is 12.2% and the number of taken out home loans decreased as a result.

According to Veaceslav Ioniță, before the crisis of 2008 the prices of old and new apartments were almost the same. Following the market decline that lasted for ten years, the prices of old apartments decreased faster than the prices of new apartments. When the market started to grow, the new apartments rose in price much more. Consequently, the discrepancy in the prices of old and new apartments widened to 40% compared with 12-14 years ago.

The expert anticipates the year will end with a stabilization of the prices of old apartments and a slight decline in the prices of new apartments in the fourth quarter, compared with the third quarter. There is yet a rise compared with last year.

Veaceslav Ioniță noted the real revenues of construction companies will see the largest decline since the declaring of Independence.  The apartments are sold in euros and an euro this year costs by one leu less than last year. The prices of building materials grew significantly this year.

“Difficulties will appear on the construction market. Some of the companies will not resist. Stabilization and a return to normality will occur in the second half of 2023. The prices reached a record high and will now stabilize. The momentary policy of the NBM will be relaxed and we will have cheaper money. The people will continue to raise mortgages. The construction companies next year will have uncovered supply, but the volume of new building works decreased considerably this year,” the expert said in the Friday edition of the program “Economic Analyses with Veaceslav Ioniță”.