Armenia’s housing market still stagnates

YEREVAN, April 16. / ARKA /. Armenia’s housing market is still stagnating, according to Hakob Baghdasaryan, head of Akcern real estate agency. Speaking at a news conference he said property prices do not change because of sluggish construction sector and lethargic mortgage market.

Baghdasaryan said expectations that the arrival of thousands of Syrian Armenians would revive the housing market did not materialize. 

"Syrian Armenians, who fled their country choose to rent apartments waiting for the situation in their country to normalize so that they can  go back,” he added.

He said the real estate market in the provinces does not differ from that in Yerevan, not counting  a small revival in sales of agricultural lands.

Speaking about the outlook for the coming months, Baghdasaryan argued that the situation in the property market will depend on the  government’s approaches and changes in legislation.

"It's time to shift from decisions with short-term effect to strategic thinking. And this requires, roughly speaking, to give up 1 million drams today in order to earn 10 million drams tomorrow. This is true not only of the construction sector, but also of  other sectors," he concluded.

According to Armenia’s State Committee of Real Estate Cadastre, the average market price of a square meter of living space in apartments  in Yerevan  amounted to 268,000 drams in February, up from 250, 100 a year earlier. The change is due to the depreciated Armenian currency. The highest price was recorded in February in the capital's Kentron (downtown) administrative district-  424,100 for a square meter and  the lowest  in Nubarashen district- 146,200 drams.

The  average price of a square meter of housing in private houses (mansions) in Yerevan amounted to 283,800 drams against 269,600 in November last year. The average price of a square meter of housing in apartment buildings beyond Yerevan in February of this year increased by 0.4% from the previous month.  -0-