Property prices in Chișinău rise as sales slow down in 2025
In the first quarter of the year, the number of apartments sold in Chișinău dropped by nearly one-third, with just around three thousand transactions, compared to the same period in 2024.
Housing is no longer as affordable, and the number of buyers willing to pay in full with cash has decreased compared to previous years, notes real estate expert Victor Cernomorcenco in an analysis.
Property prices have increased too quickly relative to the population's income, the expert explained. As a result, the number of apartments bought with mortgage loans has risen significantly.
Prices have increased more rapidly than purchasing power and economic growth. At the beginning of the year, it was forecast that prices would increase by 7-8%, in line with the inflation rate, but we are already seeing that, in the first three months alone, the average price has increased from 1,540 euros to 1,650 euros. As a result, people have not yet been able to adjust to the new prices, and many buyers are simply waiting on the sidelines, delaying the decision to purchase a home. They hope that a market correction will occur – this is the primary factor.
Another point is that most apartments are now sold with mortgage loans – for the first time, 60% of apartments sold were bought with such loans. This indicates that housing is expensive, and people can no longer afford to buy with cash.
When asked if apartment prices might decrease in the near future, Victor Cernomorcenco replied that it is difficult to make predictions, as more new residential blocks are expected to be commissioned, but this is also tied to the uncertainty of the upcoming parliamentary elections.
As for prices, it is extremely difficult to predict at this time, as we do not yet know how certain factors will evolve. We are also in an election year; however, if the primary market sees a large enough supply, and indeed more residential complexes are expected to be built or at least construction will begin this year, then we may have a more ample supply, and prices might plateau. This period of adjustment is crucial for stabilizing the market.
The number of real estate transactions in the first quarter of 2025 is comparable to the same period in 2023, when the market felt the impact of a record 30% inflation. In 2023, the average price of apartments was 1,070 euros/m2, and by the end of 2024, it had risen to 1,540 euros/m2. In the first quarter of 2025, the average price surpassed 1,650 euros/m2, although the number of transactions has decreased. Demand remains high, exceeding supply by 30%, but buyers are postponing their home purchases, hoping that prices will decrease, according to the data presented by Victor Cernomorcenco.
Translation by Iurie Tataru
