Moldova Home Prices Fall 1.1% in Second Quarter of 2026

Prices in the residential property market have ‘stalled’

In the second quarter of 2026, there was a slight fall in prices in the residential property market. Current developments point to a slight correction in house prices following a period of strong growth; however, the annual trend remains positive for property sellers. Despite the quarterly dip, the market continues to show growth on an annual basis.

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The Residential Property Price Index (RPPI), calculated on the basis of asking prices, stood at 230.5 per cent, down 1.1 per cent compared with the first quarter of 2026 and up 3.8 per cent compared with the second quarter of 2025. The figures are provided by the National Bank of Moldova (NBM), which monitors the mortgage lending market.

Mortgage credit risk remains the main risk to which banks are exposed. The regulator has established that non-performing loans granted for the purchase and construction of property, as well as loans granted for commercial purposes, have the greatest impact on the sensitivity of the capital adequacy ratio to a deterioration in loan quality.

Rise in ‘bad’ mortgages

Despite an overall fall in interest rates in the first half of the year, the consequences of past economic shocks continue to be felt in the loan portfolio. The proportion of non-performing (problem) mortgage loans has stabilised at an elevated level of around 4.6 per cent (by comparison, in 2024 this figure stood at just 1.5 per cent).

According to economic analysis, around 18 per cent of borrowers are currently in arrears on their mortgage payments. The burden on citizens in the second quarter was also exacerbated by a slight increase in the base rate for the ‘Prima Casă Plus’ state programme (from 5.57 per cent to 5.66 per cent), which came into effect towards the end of the quarter.

In the second quarter of 2026, Moldovan citizens took out new loans (consumer and mortgage) totalling 8.4 billion lei, marking an all-time high for a single quarter.

However, according to the NBM, the assessment of mortgage risks “does not indicate any systemic vulnerability or excessive systemic risk” and reflects the banks’ adequate capacity to mitigate the impact of shocks.

This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.

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