Flats' price in real value 3.4-fold lower in Moldova than ten years ago, economist says

Chisinau, 28 May /MOLDPRES/ - The price for flats in Chisinau, in real value, is presently 3.4-fold lower than ten years ago. Most likely, ”we witness a stabilization of the market at the lower limit of prices and for 2020, we anticipate a slight revival of prices,” economist Veaceslav Ionita has said.     

Formally, the expert noted, in ten years, the price dropped from 900 euros for one square metre in the fourth quarter of 2008 to 520 euros for one square metre in the first quarter of 2019. If to take into account also the exchange rate, then the things have practically not changed; in 2008, a flat cost 12.3 thousand lei for one square metre and in 2019 – about 10.1 thousand lei.  

Yet, on this period, the costs in constructions and the cost of living have changed essentially. In the last ten years, according to statistics data by the National Statistics Bureau, the costs of constructions works increased 1.7-fold, while the salaries grew by 2.6 times. Thus, for the data’s comparability, it is necessary to adjust the cost of apartments to the value of the euro from 2008, taking into account the increase in prices and salaries. Economist Ionita said that, thus, in the first quarter of 2019, the flats’ price had dropped to the historical minimum of 262 euros for one square metre at the euro’s value from 2008.