Economist Veaceslav Ionita warns of an unprecedented real estate situation in Chisinau. In the first quarter of 2025, prices for new apartments surged by 20.6% compared to the previous quarter, reaching a record high of €1,906/m², according to BANI.MD. It marks the highest quarterly increase in Moldova’s history, surpassing the previous record of +14.5% in Q1 2008.
“This price explosion should concern everyone. The annual increase has hit 35.4%, the highest level recorded over a decade,” Ionita stated. “We are heading toward a severe crisis unless the state urgently implements concrete measures.”
Ioniță attributes the crisis to several serious factors:
- The drastic drop in housing supply: Between 2022 and 2024, developers built only 811,000 m² of housing, more than 50% less than the 1.7 million m² between 2019 and 2021.
- Rising demand: Around 10,000 people from rural areas move to Chisinau each year. In 2024 alone, over 4,000 foreign nationals settled in Moldova, most choosing the capital. Estimates suggest the city needed at least 5,000 new apartments in 2024 to meet demand.
- Soaring construction costs: Over the past three years, construction expenses have risen by 50%, making it increasingly difficult to return to affordable prices.
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Meanwhile, the transaction market has stalled. Normally, Chisinau sees 8,500–9,000 real estate transactions per quarter. In Q1 2025, fewer than 5,000 transactions took place. Prices for older apartments also rose sharply, increasing by €190/m² in just one quarter, reaching €1,324/m².
“This housing crisis is more than a market problem— a major social risk,” Ionita warned. “If we don’t act swiftly with a national affordable housing plan that reduces bureaucracy and incentivizes developers, this crisis will impact entire generations.”
He stressed that Chisinau cannot afford “half-built” policies.
“Without a coherent national housing strategy, supportive construction policies, and administrative reform, this price explosion won’t be the last. It will mark the beginning of a deep and lasting real estate crisis,” Ionita concluded.