Expert: The domestic real estate market has already created everything the prerequisites for reviving the situation and increasing prices in 2018.

ArmInfo. In 2017, the sharp the volatility of property prices was not observed due to lack of changes in the cost of construction 1kv.m. housing. This was stated in the conversation with the correspondent of ArmInfo by the chairman of the corporation "Akcern" Hakob  Baghdasaryan.

However, in 2018, according to the expert, all the prerequisites for the growth of prices and the revitalization of the real estate market have already been created. In particular, he noted that next year the prices for real estate can increase to 10% if the government's steps in terms of increasing economic activity will be continuous, more sharp and bold.

"Real estate is a very interesting indicator, showing the real situation in the economy of the country, so the revival of the economy, certainly, will affect the increase in property prices>, - he said. From this point of view, in A. Baghdasaryan's opinion, 2018 will be the defining year for Armenia.

According to the expert, considering certain steps taken by the government in the tax and customs field, some laws will come out in 2018 that prevent the inflow of considerable investments into the Armenian economy. Today's growth rates of economic activity are not satisfactory, which is why there is a deficit of demand in the real estate market. By and large, the expert attributes this to the low profitability of business, which also affects the level of consumption of the population. In his opinion, the ineffectiveness of the Armenian business is influenced by a number of different problems, in particular, related to certain requirements of the tax legislation. In this regard, Baghdasaryan noted the tax on profits, which in Armenia is 26%, while in Russia - half. At the same time, he pointed to high tariffs for energy resources, gas, the level of bureaucracy and other factors that affect directly the organization of exports. "At the same time, the state should make profit an hour later than the entrepreneur himself, and not vice versa," he stressed. At the same time, he noted the difficulties of business related to financial accessibility.

According to the expert, interest rates on business loans should not exceed 5-6%. The investment environment is also unfavorable. "If you look at official statistics, the volume of transfers to Armenia is equal to the outflow of finance from the country. If the investment environment were favorable - the outflow would be minimal, "he said. In general, according to Baghdasaryan, the very evolution of business has been disrupted in Armenia - the micro business does not grow into small, small - medium and medium - into large, he said. Wherein Armenia is characterized by the centralization of business and finance, which can not avoid  affecting  the real estate market.  However, he did not rule out that in the context of the next 5 years, given prospects of tourism, a culture of rent will be introduced in Armenia housing, which today is the case in developed countries. Stone Only unreasonable aviation pricing can become a stumbling block policy. Changes in the conditions of mortgage lending also made some positive changes. In particular, the mortgage portfolio of the company, according to the expert, increased by 20%. However, the problem of high interest rates is still relevant.  It is noteworthy that today Diaspora participation influences the revival of the Armenian real estate market.  "If we excluded real estate transactions that are concluded from abroad - the picture would in fact be very sad," he stressed. Over 50% of deals are with the Diaspora, or with external financing, the head of Akcern noted.  Meanwhile, according to the State Committee of Real Estate Cadastre, the average market value of housing in Armenia in 9 months of 2017 fell by 4.2% per annum to 177.4 thousand drams / 1 sq.m. During the reporting period, apartment blocks on average averaged 3.8% in the year-on-year to 174.6 thousand drams / 1 sq.m. In particular, the price of an apartment in Yerevan declined by 3.4% in the year to 265.4 thousand drams / 1 sq. M., And in regions - by 5.2% - to 83.7 thousand drams / 1 sq. M.  Meanwhile, prices for private houses have fallen by an average of 4.5% to 180.2 thousand drams / 1 sq. M.  So, in the regions the cost of 1 sq.m. The private house decreased by 2.2% in the year to 88.8 thousand drams, and in the capital - by 5.3% - up to 271.5 thousand drams.  In total, the price of 1 sq.m. the capital's residential real estate (multi-apartment buildings and private houses) declined by 4.4% on an annual basis, an average of 268.4 thousand drams.  According to the State Statistics Committee, the highest prices for apartments in Yerevan have traditionally been kept by the community of Kentron (Center) - 441.3 thousand drams / 1 sq. M. on average, with an annual growth of 3.1%. Then follows Arabkir, where the price of apartment blocks is fixed at 345.7 thousand drams / 1 sq. M., With an annual decline of 3.2%. These communities also traditionally record the highest prices for private homes: Kentron - 476.1 thousand drams / 1 square meter. (with annual unchanged) and Arabkir - 381 thousand drams / 1 square meter. (with an annual decline of 0.5%).  The lowest prices for housing in the capital are invariably preserved in Nubarashen, where 1 sq.m. During the reporting period, the apartment cost 156.6 thousand AMD (an annual decline of 0.4%), and the private house - 150.3 thousand drams (annual decline of 0.3%).  In the regions, the highest prices for private houses were recorded in the resort town of Tsakhkadzor (Kotayk region) - 301.8 thousand drams / 1 sq. M. (annual decline of 1%). Then follows: Abovyan (Kotayk region) - 156.2 thousand drams / 1 square meter. (annual decline by 0.7%) and Vagharshapat (Armavir region) - 150.7 thousand drams / 1 sq. m. (annual decline of 1.6%). In the regions, the three above- mentioned cities are also leading in terms of apartment prices: Tsakhkadzor - 290 thousand drams / 1 sq. M.  (annual decline of 0.8%), Abovyan - 150.8 thousand drams / 1 square meter. (annual decline of 2.7%) and Vagharshapat - 136.2 thousand drams / 1 sq. m. (annual decline of 11.7%).