Prices at Primary Real Estate Market of Moldova Stay Unchanged
OREANDA-NEWS. February 17, 2011. This fact is noted by the Nika-Imobil real estate agency’s experts, underlining that the offers in the market vary between 500-700 euros for a square meter depending on the availability degree and location of the building, and starting from 800 euros – in the center of the city.
The cost of a square meter grows with the increase in the house readiness degree. Most sales are seen by houses which have already been put in operation, and it is equated with the secondary market. Experts note reduction in the area of apartments and increase in the number of houses’ floors in order to cut the prime cost among the primary real estate market development tendencies. Nika-Imobil experts state that the situation in the primary real estate market of Moldova is difficult because trust in the scheme of its functioning itself has been shaken.
The volume of dwelling put into operation reduced twice. Building of most multistory houses has been suspended. Laying of new objects has practically stopped. During the swift growth of prices, the permit documentation wasn’t paid much attention to, the activity on the building site was the main indicator of a building company’s reliability.
That is why, when builders started having problems with funding, a chain reaction took place, purchasers started waiting, the fact that resulted in a bigger shortage of funding. Purchasers wouldn’t risk participating in a share building due to the lack of any guarantees. The situation definitely cannot be changed without assistance from the state.
Experts note that legislative basis protecting rights of a purchaser of real estate being built needs to be created to restore and develop the building sector and affordable mortgage should foster the demand for real estate. A structure with the obligatory participation of the state that would provide and guarantee mortgage credits is needed. In the experts’ opinion, resources can be attracted by issuing securities. If the situation with affordable crediting isn’t solved in the near future, the return of the late socialism marks – objects of uncompleted building – to the city view may be expected.
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