OREANDA-NEWS. January 24, 2011. Slowdown of the landslide of prices and market stabilization were the main event of 2010 in the real estate market of Moldova. This is the opinion of the Nika-Imobil real estate agency analysts. According to them, prices for real estate in Moldova reduced by 18% for the first half of 2009.

In the same period of 2010, the prices went down by 8%, and in the second half of last year the prices grew 3%. The last year price change dynamics was the following: the first half-year – reduction, in the summer – stabilization, in autumn – a slight growth. In comparison with the maximum prices registered in summer 2008 (850 euros for 1 square meter), the reduction was 27%. As a whole last year, prices for real estate went down 6%.

The average cost of a square meter of the total area decreased by 40 euros totaling 670 euros. Nika-Imobil experts say the same level of prices was fixed in the market in autumn 2007. Analysts believe the slowdown of prices and the observed market stabilization with a low demand for real estate on the background of the political uncertainty and unfavorable economic situation is caused by the fact that the decline in prices is being hampered by the reduction in supply which is limited in the secondary market.

Due to the high risks with purchase of apartments in the constructed houses, a part of potential purchasers switched over to the secondary market. Therefore, the simultaneously decreasing level of demand and supply created conditions for the smooth reduction in prices. Nika-Imobil experts emphasize that no mass discharge of real estate objects into the market like in other countries has taken place in Moldova. Most apartments were purchased at people’s own expense, there are no mortgage obligations on them, that is why sellers can afford not hurrying with their sale and don’t reduce the prices considerably.

The number of buyers purchasing real estate by means of mortgage was small, that is why, the reduction in volumes and worsening of conditions of the provided mortgage credits didn’t have a significant impact on the market.