The influence of macroeconomic factors on the value of residential property in the Republic of Moldova

Abstract

Currently, residential real estate represents an important direction for investments in the Republic of Moldova. The real estate market, like any other, is an open system that is influenced by both the internal and external environment. Therefore, for a deeper evaluation, it is necessary to identify the dominant macroeconomic influence factors and to determine stable cause-effect relationships between them. The objectives of the research are to identify the volume and dynamics of the development of the housing stock; to determine the volume of potential participants in the real estate market; to analyse the dynamics of macroeconomic factors influencing the value of residential real estate; the role of mortgage loans in the development of the residential real estate market; examples, conclusions, and recommendations. This article analyses macroeconomic factors, including the refinancing rate of the National Bank of Moldova, inflation, the construction works price index, investments in construction, and mortgage lending conditions. It was found that each of these factors contributes to the expected change in the value of residential property. Based on the analysis of statistical data and data collected from the real estate market, this article presents conclusions about a new picture of the residential real estate market. The results of the study can be useful to all those operating in the residential real estate market, developing insights for market participants, and conducting research on real estate properties.