Why Chișinău apartment prices are surging despite market stagnation
The Moldovan real estate market has been primarily shaped by the war in Ukraine, with many Ukrainian citizens investing in local housing, according to Victoria Belous, Vice-Chair of the Parliamentary Committee on Economy, Budget, and Finance.
Beyond the geopolitical impact, other factors driving up apartment prices include a decline in new construction, the skyrocketing cost of land and building materials, and increased regulatory compliance among developers who are now paying full state taxes and fees.
"Land prices in Chișinău have increased five to six times, I believe," Belous stated during an appearance on NEXT TV. She noted that land supply has dwindled as most plots have already been sold. Furthermore, the construction sector in Moldova is undergoing a transition toward fiscal transparency.
"A few years ago, we were talking about average industry salaries of 7,000 to 9,000 MDL. Today, official wages exceed 15,000 MDL," Belous explained. "When you pay a salary of 15,000 MDL, the tax burden within that structure is approximately 40% to 45%. Ultimately, all these costs are reflected in the final price."
The real estate market in Chișinău is currently experiencing a period of stagnation. The number of purchase-sale transactions plummeted by approximately 65% in the second quarter of this year, continuing a downward trend observed over the previous six months.
Despite the drop in sales volume, apartment prices continue to climb, reaching an average of over 1,700 euros per square meter.
Translation by Iurie Tataru
