However, it was not long before the government of Moldova understood that it would not be possible to develop the Moldova real estate industry if one followed completely this land privatization policy. Buildings and edifices which dated back to the Soviet era could not help in progressing the Moldova real estate market, and investors backed out from investing in the country because of sheer insecurity, which stemmed from the country's unstable political situation.
The first step towards real estate market development was made when the Moldova government implemented the First Cadastre program which required all real estate property within Moldova to be registered with the government. Once the registration program was underway, privatization of land property was implemented in full force which subsequently progressed the real estate industry in the country.
The result that this program has been able to garner is unbelievable with 80% of real estate being registered with the government and sale of real estate property escalating from 17,907 in 1999 to 89,451 in 2005. Mortgage on real estate have also been registered for the first time in the country's history. Registration of property has provided land-owners with secure ownership rights, they can buy and sell real estate at moderate market prices and commercial banks too are giving credit against real estate property. This real estate project of Moldova would not have been possible without help from foreign countries like; Sweden, Switzerland and Norway.
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