Thursday, November 1 2012 17:22
Armenia still faces stagnation in real estate market
ArmInfo. The Armenian real estate market still faces stagnation, President of "Akcern" Real Estate Corporation, Hakob Baghdasaryan, said at today's press conference.
He said that the decline in the property purchase and sale transactions, as well as the reduction in the housing construction are first of all due to the low demand for property, which is known to directly depend on the citizens' salary amount. The large-scale migration also has a negative effect on the market. "The private entrepreneurs engaged in construction business are working "carefully" now, putting off the construction period till the time, when the probability to receive more profit increases. Businessmen keep an eye on the fluctuation of prices of property and building materials in a bid to choose the most "profitable" moment to resume the construction or sales", said Baghdasaryan.
When asked how the arrival of ethnic Armenians from Syria has influenced the housing property prices in Armenia, Baghdasaryan said that most of the Syrian Armenians stay in the country temporarily. Most of them leave for the third countries. "Their arrival cannot influence the property prices, and one should not expect any big changes in this context", he stressed.
According to the State Committee of Real Estate Cadastre, in August 2012 versus July 2012 the price of 1 sq m in an apartment building rose by 15.3% (7.8% y-o-y decline) to 260 thsd AMD. The private houses in Yerevan were up only 0.3% (1.5% y-o-y growth) to 276.4 thsd AMD. No essential changes in the housing property prices were fixed in the regions of the country.