Buy vs Rent an Apartment in Chisinau: 2024 vs 2025

Published on: December 29, 2024

This analysis was conducted based on the current real estate market in Chisinau in 2024, and the 2025 predictions were made in collaboration with CVS.md.

1. Market Conditions and Real Estate Prices

2024:

• Rental Market: In 2024, Chisinau's rental market remains relatively affordable, with long-term rental prices ranging from €200–€600. This is a reasonable option for those who prefer flexibility without making a large financial commitment.
• Buying Market: Property prices in Chisinau in 2024 are still lower compared to major European cities, but there has been a gradual increase. On average, the price per square meter in the city center is €1,200–€1,800. While the market is still relatively accessible, higher prices could be a barrier for first-time buyers.

2025:

• Rental Market: Renting in 2025 might see some price increases due to inflation and possible economic recovery trends in Moldova. The average rental price could rise by 5-10%, depending on demand and economic factors. While still affordable compared to larger European cities, renting will become slightly more expensive.
• Buying Market: By 2025, Chisinau’s real estate market could experience more significant price appreciation, particularly in sought-after areas. Property prices are expected to rise further, making it harder for first-time buyers to afford homes. However, with increasing demand and development projects, 2025 may offer a broader selection of new or renovated properties at varying price points.

2. Financial Considerations

2024:

• Renting: Renting offers greater flexibility, especially if you anticipate a short stay or if you're unsure about Chisinau’s long-term prospects. It's also less financially burdensome, with lower upfront costs compared to purchasing a property.
• Buying: Buying an apartment in 2024 may be more financially feasible if you have enough savings or access to a mortgage. Although mortgage rates might still be high, property prices remain relatively affordable, making this year a good opportunity for long-term investment.

2025:

• Renting: Renting in 2025 will likely remain an attractive option for those seeking flexibility. However, due to potential rental price increases, it may become more expensive, especially in popular neighborhoods. Renting could be ideal for those still saving for a down payment or who are uncertain about their future in Chisinau.
• Buying: If you’re planning to buy in 2025, it may require a larger investment. As prices rise, securing an affordable mortgage may become more challenging, and monthly payments could increase. While buying remains a good long-term investment, the higher upfront costs and potentially higher interest rates in 2025 may make this a less accessible option for some.

3. Flexibility and Commitment

2024:

• Renting: Renting in 2024 provides flexibility with fewer commitments. If you plan to stay in Chisinau temporarily or if you're unsure about the stability of the local real estate market, renting is a smart choice.
• Buying: Owning property requires long-term commitment. If you’re certain about staying in Chisinau, buying might be a better option, but it ties you down and involves the responsibility of property maintenance and taxes.

2025:

• Renting: Renting in 2025 still provides flexibility, though rising costs may affect affordability for some people. If your long-term plans are uncertain, renting will allow you to easily relocate without the hassle of selling property.
• Buying: In 2025, buying could still make sense if you’re staying long-term, but it might become more difficult to manage financially due to higher property prices. Additionally, the increased cost of owning property could reduce the appeal of buying for those who aren't certain about staying in Chisinau indefinitely.

4. Long-Term Plans and Stability

2024:

• Renting: If you are not sure about your long-term plans in Chisinau or expect to relocate soon, renting is ideal. It offers flexibility and avoids the commitment and financial burden of buying a property.
• Buying: For those with long-term plans to stay in Chisinau, buying an apartment in 2024 remains a stable option, as property values are still relatively low and are expected to appreciate. If you’re looking to build equity, purchasing now could be a good financial decision.

2025:

• Renting: Renting in 2025 still offers flexibility, but as rents rise, it may become less appealing as a long-term option. If you foresee staying in Chisinau for the long haul, buying could offer better stability and financial benefits.
• Buying: By 2025, buying becomes a more significant investment. For those with established long-term plans, owning property could offer stability, especially if property values continue to rise. However, the increased upfront cost and ongoing maintenance may make buying more challenging for some.

5. Investment Potential

2024:

• Renting: Renting does not build equity, but it provides a lower-risk option with flexibility. It's suitable for individuals who aren't yet ready to make a large financial commitment.
• Buying: In 2024, purchasing property in Chisinau is a solid investment. Property values are expected to increase, providing potential for long-term gains. If you plan to rent out the property, it could also generate rental income.

2025:

• Renting: Renting may offer fewer opportunities for wealth-building. However, it allows you to avoid the financial risk of a potential real estate market downturn and gives more flexibility to adjust plans.
• Buying: If you purchase property in 2025, the market could offer greater returns, but the increased prices and higher mortgage rates may affect your overall return on investment. Despite higher entry costs, owning property still has the potential for substantial appreciation, making it a valuable long-term investment.

Conclusion

In 2024, renting is ideal for those seeking flexibility and lower initial costs, while buying offers a good investment opportunity for those with long-term plans in Chisinau. The 2025 market could present a more competitive real estate environment, with rising prices potentially making it more difficult for first-time buyers to enter the market. If you can afford it and have long-term stability in Chisinau, buying might be an attractive option. Otherwise, renting could still be a viable choice, though at a slightly higher cost due to potential rental increases.

For those who anticipate living in Chisinau for several years, buying may be a better long-term financial decision, while renting remains a good option for more flexible living arrangements.