Head of developers' association expects no drop in Armenia's real estate prices
YEREVAN, December 10. /ARKA/. There are expectations in the market that prices will decrease, but the head of ‘’Armenian Developers Association’’, Gurgen Grigoryan, disagrees.
"There will be no significant change in prices. Why? Because the cost of construction is constantly increasing. If the policies being implemented by the state, municipalities, and utility companies continue — including fees for connections, duties, local payments, and the current tax changes — all of this will ensure that the cost of construction does not decrease. Given that production costs remain high, the final price for the consumer will also not change," Grigoryan said.
The "Macroeconomic Development Review: October 2024" by the Ministry of Finance of Armenia states that real estate prices in Armenia continued to rise in September, but the growth slowed compared to August. The average market price growth for apartments in multi-apartment buildings in Yerevan ranged from 0.4% to 1.2% compared to August, depending on the administrative district, and ranged from 5.6% to 9.8% compared to September of the previous year.
"The highest prices were recorded in the capital’s Kentron administrative district (908,100 drams per 1 sq. m, a 0.6% increase compared to August and a 5.6% increase compared to September last year), while the lowest prices were in the Nubarashen administrative district (231,100 drams per 1 sq. m, a 0.4% increase compared to August and a 6% increase compared to September last year)," the study states.
In the regions, the growth of average market prices compared to August ranged from a decrease of 2.3% to an increase of 4.4%, and compared to September last year, it ranged from a decrease of 1.1% to an increase of 20.7%.
"The highest prices were recorded in the city of Tsaghkadzor in the Kotayk region (453,000 drams per 1 sq.m, an increase of 1.1% compared to August and 7.9% compared to September last year), while the lowest were in the city of Tumanyan in the Lori region (27,100 drams per 1 sq.m, an increase of 2.3% compared to August and 8.4% compared to September last year)," the report notes.
