Number of transactions on sale, purchasing of flats continuously increases in Moldova

Chisinau, 7 September /MOLDPRES/ - The number of transactions on the sale and purchasing of flats has increased to 11,500 in the first half of 2019, according to data by the Public Services Agency (ASP). The annual number of transactions  might exceed 22,000, above the level from 2018, when 20,400 flats sold were registered. This was a record for Moldova, given that the number is by 5,000 higher against the last five years.

Official statistics on the real estate market in the first half of 2019 shows that 3,898 transactions were recorded. Expert Veaceslav Ionita said that, following a continuous decrease in the wake of the 2008 crisis, the real estate market was on the rise and the tendency would maintain in continuation, especially as the supply is increasing. According to the National Statistics Bureau, 3,676 dwellings and private houses were made available for living in the first half of this year. They have an area of 271,100 square metres, by 30.3 per cent above the level registered on the same period of the year before.  

The easier access to credits for real estate, even if the average interest rate has increased insignificantly in the last six months, the implementation of the First Home programme and the increase in residents’ income boosted the real estate development.

In the first seven months of 2019, commercial banks provided residents with credits for real estate worth 1.8 billion lei – a value comparable with the loans borrowed by private people throughout 2018, according to data by the National Bank of Moldova. In January-July 2018, the loan for real estate offered by banks to residents amounted to 822 million lei.

At the same time, the average nominal gross monthly salary reached 7,302.6 lei in the second quarter of 2019, recording a 14.6-per cent increase against the similar period of the previous year.  

Transactions on the real estate market are on the rise, despite an insignificant increase in the price of dwellings in Chisinau, where about 70 per cent of all sales of apartments were registered in the first half of this year. Data by the LARA real estate exchange shows a four-euro (0.7 per cent) increase in prices for flats, up to 533 euros for one square metre in July 2019 against the month before.