Apartment prices have risen by 15 percent, but real estate agents expect a further increase. What experts say
Since the beginning of the year, prices of new apartments have increased by 15 percent, and in the coming months they could increase by another 15 percent, real estate agents told Radio Moldova. According to them, the causes are the halt in new construction during the pandemic period and the high price of renting apartments following the influx of Ukrainian refugees. But economic experts say apartment prices could rise by only 5% by the end of the year.
During the pandemic period, economic agents built few apartments and all the blocks of flats currently under construction have already been sold, real estate agent Eugen Turcanu told Radio Moldova. According to him, an apartment that in 2022 sold for 60 thousand euros now costs 70 thousand euros. He also pointed out that the price of a square meter for a new apartment has increased in the last 7 months from 900 euros to 1200 euros.
"In the last 7 months, we have had an increase in the price of apartments of 15%. There are housing complexes that have already planned to increase the price of apartments by up to 15% by the end of 2023."
People's incomes have fallen and they are avoiding investing in apartments because of the war in Ukraine, said economist Viorel Gîrbu. He says that apartment prices have risen in the last 7 months, but by no more than 5%.
"If economic agents considered that investments in apartment construction were advantageous, we should have seen that the number of permits issued for apartment construction increased. Statistics show that the situation is the opposite. Estate agents are keen to boost the dynamics of the property market. Prices could rise by the end of the year, but by no more than 5%.
According to the National Bureau of Statistics, some 1,600 building permits for residential and non-residential buildings were issued between January and June, down 0.7% on the first six months of last year.
