Thursday, June 14 2012 17:33
Armenia's real estate market is in critical condition
ArmInfo. Armenia's real estate market is in critical condition, Director of the Akcern Real Estate Corporation Hakob Baghdasarayn said during a press-conference on Thursday.
"In the regions the situation is worse than in Yerevan. The declining demand for real estate is having no influence on prices due to declining construction, stable construction material prices. In fact, essentials and labor resources are keeping the prices unchanged," Baghdasaryan said.
He said that presently buyers prefer buying real estate when the building is ready rather than before the start of the construction.
President of the Republican Union of Employers of Armenia Gagik Makaryan said that the key reason why the real estate market is stagnating is the current industrial growth. "I mean not so much the production as the launch of new business projects. Now that the Government is going to actively develop the economy, the market will revive as improved business climate implies active purchase of real estate," Makaryan said.