Moldova ranks second in Europe in terms of ownership of dwellings

Chisinau, 17 May /MOLDPRES/ - As many as 95.2 per cent of the families live in private dwellings in Moldova, which makes the country rank second in Europe after Romania (with 96.4 per cent), which is the first EU country in terms of ownership of dwellings. Switzerland and Germany are at the opposite pole, where only 42.5 per cent and, respectively, 51.5 per cent of the families live in their private dwellings, according to EuroStat data, analyzed by the Viitorul (Future) Institute for Development and Social Initiatives (IDIS).  

According to statistics data, the number of families from urban settlements who live in rented dwellings has significantly increased in Moldova in the last 15 years. While in 2006, only 3.8 per cent of the residents were living in rented homes, presently, their share grew to 10 per cent. ‘’The fact that most of them are in Chisinau becomes obvious, which allows us saying that a new branch of the economy appears in Moldova: renting apartments. A good deal of the transactions on the real estate market is made by people who buy flats on investment purposes,’’ an economist of IDIS Viitorul, Veaceslav Ionita, said.    

The economist noted that the Chisinau city would tend to the European average, where about one third of the families live in rented dwellings and the state should regulate and encourage this new branch of the economy as one of the solutions to provide families with dwellings. ‘’The First Home programme is good; yet, it is for those who are willing and are able to purchase a dwelling. Or, there are tens of thousands of people who cannot buy dwellings, for whom normal conditions for renting must be provided,’’ Ionita specified.   

In Romania, according to the experience of other more developed countries, there are already entire residential districts and zones, which were constructed exclusively in order to be rented. Moreover, the country has already developed also a legal framework of associations of apartments’ tenants. ‘’These are the actions of the near future which Moldova must undertake as well,’’ Ionita said.

Veaceslav Ionita also said that at least 50,000 apartments to be rented would be necessary in Chisinau in the next ten years, which means at least two billion euros of investments. This is the biggest investment market and it is the only so big where small investments can be made. ‘’If to seriously speak about the attraction of our Diaspora into the investment process in Moldova, then the renting of apartments is the surest way of attracting small investments of our Diaspora,’’ the economist noted.

According to Veaceslav Ionita, the government must be focused on the legal framework and on an attractive taxation system, ‘’as only in this way we can ensure the development of the biggest market of Moldova, with a potential of at least two billion euros.’’