“We have a problem in the real estate market. Prices are higher than people’s salaries and incomes. Housing is becoming unaffordable. How can we ensure that homes are built where the price per square meter is 800 euros instead of 3,000 euros? Even if it’s not in the city center, even if it’s on the outskirts, we must work toward this goal,” Tofan said at the Diaspora Forum.
According to him, the authorities should focus on increasing supply and fostering competition in the real estate sector, rather than on measures that could negatively impact the market.
“We need to take action, and the solution I see must be pragmatic: we need to increase the supply of lower-cost housing and stimulate competition in this market. We must not introduce regulations that will only destroy the market. In Berlin, they tried to regulate prices, and this led to negative consequences for the market. Two years later, they abandoned this approach because developers stopped building and began moving to other markets,” the prime minister said.
Tofan also noted that among the problems that need to be addressed are developers’ access to land, the labor shortage in the construction industry, and reducing corruption risks when obtaining permits.
He emphasized that housing affordability challenges are not unique to Moldova but are common to many European countries, especially following the pandemic, when construction costs rose significantly. At the same time, Tofan noted that the authorities should not use this situation as an excuse for failing to find solutions.
