The “Prima Casa” (First Home) program could undergo major changes or be discontinued in its current form, as authorities consider a full reset of the housing support mechanism. Andrian Gavrilita announced that the Government is preparing measures targeting both the supply and demand sides of the real estate market, according to BANI.MD.
“We are preparing a project on the supply side of the real estate market, and on the demand side, together with colleagues from the Ministry of Labor, we will assess whether this program should continue and which segment should be targeted,” Gavrilita said.
He explained that authorities initially designed the program for specific categories of citizens but later expanded it, including by increasing quotas. This expansion now requires a comprehensive reassessment.
“We need very solid justification if we are to extend it. Most likely, the Ministry of Finance will no longer manage this program. Another ministry will take over and focus specifically on families who truly need housing, in order to avoid unwanted side effects,” the minister added.
Gavriliță also pointed out that, although the program improved access to loans, it contributed to rising housing prices by increasing overall demand.
“A well-intentioned program affects demand and inevitably contributes, at least partially, to higher housing prices,” he noted.
At the same time, he warned that state intervention could disadvantage citizens who do not benefit from the program. “We must ensure that we do not harm other citizens while helping a specific group,” he stressed.
The loan guarantee component of the program remains active, but authorities have exhausted funds for compensating installments. They have suspended new commitments, while the state continues to pay about 150 million lei annually for roughly 6,000 existing beneficiaries.
According to estimates from the Ministry of Finance, extending the program could have increased annual budget costs to between 200 and 300 million lei.
Authorities suspended the “Prima Casa” program at the beginning of April after funds allocated for new beneficiaries ran out.