Mircea Baciu
The Prime Minister is right when he speaks of the need to expand people’s access to housing. This is because, even though the officially registered housing stock (occupied and unoccupied dwellings) stood at 1,365,300 dwellings as at 1 January 2026 (an increase of 2.1 per cent compared with the figure recorded on 1 January 2025), and the total floor area of the housing stock stood at 93,379,300 square metres (1.7 per cent more than the total floor area of the housing stock as at 1 January 2025), the problem remains acute.
Housing shortage and declining activity: what is happening in the market
At first glance, the number of housing units and the total floor area of the housing stock should be sufficient for approximately 2.4 million people permanently residing in Moldova. However, the problem lies in the geographical distribution of these housing units. For instance, Chișinău, where a third of the country’s total population de facto resides, accounts for only 26.4 per cent of the total number of registered housing units. It should also be noted that, although Moldova is undergoing a significant process of urbanisation, the largest number of dwellings is concentrated in rural areas – 748,000 (54.8 per cent).
Consequently, there is a shortage of living space in towns and cities (particularly in Chișinău), and the problem is exacerbated by high prices, which are one of the factors driving the continuous decline in the number of property transactions.
This is also evident from the figures for the first half of this year, when the number of property sales fell significantly compared with the same period last year. Whilst 7,483 flats were sold in the first half of 2025, the figure for the same period in 2026 was 5,493. This represents a fall of 26.6 per cent. Some experts point to signs of a recovery in the property market and highlight a 17.2 per cent increase in the number of sales transactions in the second quarter compared with the first quarter of this year, but the problem remains nonetheless.
In an open letter that I sent earlier this year to the then Prime Minister, Alexandru Munteanu, I put forward specific proposals to improve the situation in the property market and expand public access to housing. Given that the new Prime Minister is taking an interest in this issue, I have decided to briefly outline the necessary solutions, which fall within the remit of both central and local authorities. Incidentally, local and central authorities could initiate a dialogue to determine who will take which specific measures. I shall mention these below.
More land and infrastructure: what local authorities can do
The first measure, which falls within the remit of city councils, is to put small plots (0.5 hectares) up for auction. To this end, city authorities must establish a reserve of urban land, divide it into plots of 0.5 hectares each, and organise open auctions to which only legal entities and sole traders with proven experience in construction projects of ≤ 10,000 square metres will be admitted.
Another necessary measure is the development and adoption of new urban development plans involving the sale of plots within city or municipal boundaries. This will result in the reclassification of agricultural land in suburban areas as residential zones; and the designation of large neighbourhoods, which will be divided into sections for different developers, but with a unified infrastructure plan.
A further necessary measure is the creation of new neighbourhoods with ‘turnkey’ infrastructure. Local authorities could build roads, utilities and social infrastructure facilities (schools, nurseries, medical centres) before the construction of residential buildings begins. This will enhance the attractiveness of the suburbs; young families will gain access to affordable housing with well-developed infrastructure.
In this context, I would emphasise the need to simplify and speed up the issuing of building permits, as well as to streamline the documentation requirements for small-scale projects (construction and renovation), that is, to reduce the list of requirements for buildings up to 3–5 storeys high.
From ‘Prima Casă’ to PPPs: solutions at national level
At the national level, the ‘Prima Casă’ programme needs to be modernised. In this regard, it is necessary to: restrict eligibility to the purchase of homes with a floor area of up to 100 square metres and a price not exceeding the set limit; give priority to families with children and young professionals; address the issue in regions with active new-build developments; new neighbourhoods; and housing in municipalities.
Another measure could be the introduction of a tax on quick resales (following the example of Ukraine). This could be set at 6–10 per cent of the value of property owned for less than three years. This would reduce speculative transactions and make the market more stable. This tax would be temporary – for a period of three years, for example.
Another positive measure would be the launch of joint projects between the state and property developers within the framework of public-private partnerships. This would stimulate housing construction with state involvement, which would help to accelerate the expansion of supply and ensure affordable social housing without overheating the market.
These, and other similar solutions, could genuinely lead to a normalisation of the situation in the property market and provide people with wider access to home ownership.
Mircea Baciu,
Moldovan entrepreneur
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