New residential construction declines as property costs remain high
Moldova's real estate market experienced a significant contraction in 2025. The number of completed apartments fell by 1,600 compared to 2024 and by 4,100 since 2023.
Urban developments saw the sharpest decline, dropping from 3,400 to 2,300 new units. Conversely, rural housing completions maintained a slight upward trend, reaching 1,003 units.
Total construction volume reached €1.21 billion (approx. 23.8 billion MDL) last year, an increase of €255 million (approx. 5 billion MDL) over 2024. While investment in new buildings grew, the total surface area of new apartments halved, falling from 258,000 to 114,000 square meters.
Infrastructure projects dominated expenditure, accounting for €548 million (approx. 10.7 billion MDL). Non-residential buildings and residential projects followed with €395 million and €241 million, respectively.
Market affordability is under severe pressure. With an average price of €1,700 per square meter in Chișinău, a standard 50-square-meter apartment costs €85,000. An average earner making €895 (17,400 MDL) monthly would require eight years of total income to cover this cost.
Transaction activity has plummeted. Official data indicates only 623 apartments were purchased in the capital during the first quarter of 2026, compared to over 2,000 in the same period last year.
Economic expert Veaceslav Ioniță notes that nearly 70% of current transactions are mortgage-backed. Buyers are increasingly avoiding off-plan projects, leaving construction firms struggling with liquidity to complete existing developments.
Translation by Iurie Tataru
