Dwelling builders in Chisinau risk having money in not demanded blocks frozen

The builders of apartments in Chisinau run the risk of having the money invested in the unsold residential blocks frozen. According to the website Ipoteka.md, such a prognostication was made by the director general of the International Technical Center “Capital” Alexandr Panov. The expert says the invested financial resources could not be capitalized because, due to the excessively high prices, the sale of apartments in Chisinau has dropped drastically. Panov says the construction companies that work on borrowed money have no other way out than to reduce the prices of dwelling. Many owners of residential blocks are construction organizations and private investors that took out loans pledging the buildings under construction and while the apartments are not sold and the interest grows, the terms for repaying the credits become smaller, the expert says. The more difficult the financial conditions, the sooner a drop in prices is expected. It is a natural and inevitable process for the participants in the housing market, the source says. Panov considers that the information about the 5-10% rise in the prices of apartments in Chisinau in January is spread by the very players in the market. “Their aim is clear – to artificially revitalize the housing market frightening the buyers that the prices will go up constantly so as to make them hurry and purchase flats,” Panov concluded. According to the realty agency Lara, the prices of new apartments in Chisinau in January rose by 3.5-8% compared with December. Therefore, the apartments with two, three and four rooms in Buiucanii Noi micro-sector in January grew dearer the most – by $4 000. At the same time, the three and four-room apartments in Posta Veche sector cheapened by $4 000. In Botanica sector, the apartments got dearer on average by $1 000, in Buiucani by $1 500-$4 000, in Centru and Ciocana by $1 000-$2 000 and in Rascani by $0 500-$2 000. The average price of a new, one-room apartment in Chisinau in January was $26 000-$30 000 in Botanica sector, $29 000-$29 5000 in Buiucani, $27 000-30 000 in Rascani, $29 000-$34 000 in Centru, $26 000-$30 000 in Ciocana. The two-room apartments in Botanica cost $33 000-$41 000, in Centru $40 000-$45 000, in Rascani $34 000-$41 000, in Buiucani $40 000, in Ciocana $33 000-$41 000. The new, three-room apartments in January sold for $47 000-$52 000 in Centru, $39 000-$49 000 in Rascani, $47 000 in Buiucani, $37 000-$49 000 in Botanica and $37 000-$48 000 in Ciocana. The four-room apartments in January cost $50 000-$55 000 in Centru, $41 000-$51 000 in Rascani, $50 000 in Buiucani, $39 000-$51 000 in Botanica and Ciocana. The average price of dwelling in Chisinau varies between $750 and $800 per square meter.