Armenia reports no significant changes in real estate market over past 2 years- Akcern head

YEREVAN, November 1. /ARKA/. No significant changes have been reported in Armenia’s real estate market over the past two years due to no update in the financial legislature, a head of Akcern corporation Hakob Baghdasaryan said Thursday. 

He noted the authorities should, first of all, ease mortgage lending conditions for both, developers and buyers.

“Of course, risks will grow here, but, eventually, we will face activization of the real estate market,” he noted.

Baghdasaryan also referred to construction tumble, up in prices for building materials over the past 1.5-2 years as factors hindering real estate market development in Armenia.

Immigration of the Armenian Syrians to Armenia hasn’t changed the real estate situation as it has been predicted before, he added.

It can be explained by the fact that 90% of the Armenian Syrians (nearly 5,000 people) are either sure they will return to Syria in the near future, or will emigrate to other countries. Thus, they feel no need in obtaining real estate in Armenia.

Baghdasaryan also said the real estate stagnation in Armenia may also be prompted by the upcoming presidential elections.

“Pre-election period has a negative impact on the real estate market as people are waiting for the election results and whether something will change in real estate prices,” he said.

According to State Committee of Real Estate Cadastre, the cost of one square meter in dwellings of Yerevan is 260,000 drams in August against 251,250 drams in January. The highest prices are registered in Center administrative district- 416,800 drams per square meter, and the lowest- in Nubarashen district-140,500 drams.

At the same time, an average cost of the square meter in private houses was 276,400 drams in August against 270,500 drams in January. The prices slightly rose in Ashtarak, Martuni, Vardenis, Chambarak, Stepanavan, Tashir, Maralik, Sisian, Agarak, Vayq, Jermuk, Berd, Noemberyan and Ayrum.—0-