The real estate market is influenced by the reduction in the number of public constructions and is simultaneously reinvigorated by the old apartments. Until 2010, apartments were purchased mainly by Moldovans who worked abroad and by very rich people. Now the number of those who can by a home is higher following the diminution of areas to the average of 60 square meters, which is twice smaller than ten years ago, economist of the Institute for Development and Social Initiative “Viitorul” Veaceslav Ioniță was quoted by IPN as saying in the program “15 minutes of economic realism”.
According to the expert, the young people who have incomes prefer to live separately from parents and the young people wo get married prefer to live alone. In 2018, there were sold over 20,000 apartments, which is a record high for Moldova. The figure is by 5,000 higher compared with the last five years. As many as 21,000 apartment were sold in the first quarter of 2019, the rise being fueled by home loans.
The apartment market is 75% concentrated in the municipality of Chisinau. The value of an apartment of 70 square meters situated in the municipality of Chisinau in 2018 was of €36,750. In the first quarter of this year, such an apartment cost €36,400. In 2017, an apartment could be bought for 11 annual salaries, in 2018 for 9.4 annual salaries, while in the first quarter of 2019 for nine annual salaries. The interest rate on bank loans is now much lower than the nominal rise in the salary, which is beneficial for the purchase of a home.
The sale of private houses is a new phenomenon that hasn’t existed in Moldova earlier. In the first quarter of 2019 alone, there were sold over 6,000 houses, as opposed to 7,000–8,000 in the course of the previous years. A part of those that sell the houses come from Chisinau, while the other part are Moldovans who settled abroad and decided to sell their homes. Also, some of those who raised home loans decided to buy a house outside Chisinau.
