House prices could soar 15% in coming weeks

Experts forecast a hike of over 15% of the realty prices in Moldova the next 3-4 weeks. The conclusion is made in the info-bulletin “The Index of Construction Trust” (Indicele increderii constructiilor), published in an new issue of the analytical cycle review National Sentiment, Info Prim Neo reports. The main causes of the rise of apartment prices are thought by the Development and Social Initiatives Institute “Viitorul” to be the 20% rise of construction materials, the lack of skilled workers and the Government's annulment of the zero-tax on works in this area. According to the Viitorul economists, another cause may be the ban to put in commission apartments in the so-called “white variant”. Acording to Mihai Bologan from IDIS Viitorul, the index of inflation expectation was somewhat more moderate than in the previous researches, still rather high, registering 138.4 points, what means that significant increases of building materials are expected the next months. The report also finds that, despite the inflation processes of the late period, the construction area went on recording progress last year. Thus the realty sector continues to be in the top of the most profitable businesses, the Index of Construction Trust slightly being higher than in July, with 8.1 points, reaching the level of 127.2 points, on a scale from 0 to 200. Specialists explain the phenomenon by the development of the construction services in Moldova, the more numerous firms on the market, attracting foreign investments, but also by the rising demand for new homes. Another positive factor represents the expectations related to the labor. Thus, only less than 10% of construction firm managers say they reduced the number of employees the last months, while 23.4% employers hired more workers. The poll was conducted on a sample of 315 construction firms from Moldova.