Price for flats stagnate in Moldovan capital for third quarter in a row, experts say

Chisinau, 14 February /MOLDPRES/ - The average prices for flats in the Chisinau city have been stagnating for the third quarter in a row. The real estate market will revive starting from the second half of the 2023 year. Economic expert Veaceslav Ionita has made statements to this effect.   

According to the expert, following the maximal prices in the fourth quarter of the 2008 year, when the apartments’ cost reached 900 euros/square metre, 12 years of market’s fall followed. At the same time, starting from 2021, a sharp increase in prices began, which frightened buyers.    

„Yet, for the third quarter already, we have witnessed a stagnation of prices and even a slight decrease of prices will be recorded in the first quarter of 2023. The stagnation is triggered by the economic crisis, residents’ concerns caused by the war in Ukraine, toughening of the monetary policy of the National Bank of Moldova (BNM), which led to the two-fold increase of mortgage loans, as well as the sharp increase of prices in the last two years,’’ Ionita noted.    

The expert also said that, at present, the average price for new apartments in Chisinau had capped at 880-890 euros/square metre and of the ones on the secondary market – at 680-690 euros/square metre.   

According to Veaceslav Ionita, „the real estate market will revive beginning with the second half of the 2023 year, being boosted by the substantial decrease in the inflation rate, overcoming of the critical phase of the economic crisis, cheapening of the mortgage loans, as well as due to the postponed demand from 2022.’’