Thursday, May 19 2016 19:57
Alina Hovhannisyan

Expert: Year 2017 to be transitional for real estate market of Armenia

Expert: Year 2017 to be transitional for real estate market of  Armenia

ArmInfo.Head of Akcern Real Estate Concern Hakob Baghdasaryan says the year 2017 will be transitional for the real estate market of Armenia. Talking to ArmInfo on May 19, Baghdasaryan said the market will see a real growth no sooner than in 2018.  He drew a parallel with the development of economy, which, as he says, is at a transitional stage too. 

"There are many geopolitical factors will affect the real estate market growth in Armenia. Among such factors is the political activation of the Iranian market and deeper integration with Georgia. In addition, it is anticipated that the economic situation in the world will improve with supposed rise of oil prices," Baghdasaryan said. Another factor that will stimulate the purchase-and-sale of real estate is efficient economic management, which resulted in appointment of Artsvik Minasyan as economy minister.  Highly appreciating the ministry's  steps, Baghdasaryan said the real estate market and economy in general will undergo very positive changes if at least 20% of the minister's suggestions are implemented.  
 
As for the mortgage lending market, the expert said its influence on the total real estate market is insignificant, as there are insufficient contracts there. In his words, only 3,000 per 100,000 real estate purchase and sale contracts are mortgage deals in average. He urged fundamental changes in the banking system, including softer terms of loans, as well as revision of the taxation and customs policy to intensify investment flows, which will have a positive effect on the real estate market.  
 
According to the Financial Rating of Armenian Banks prepared by ArmInfo, as of Jan 1 2015 the summary portfolio of the mortgage loans totaled 173.7bln drams ($365.7mln) or 8% of total loans, with a 22.1% year on year growth and acceleration of the growth rates from 2.2% to 12.1% for Q1.   For comparison, in 2007, the given indicator increased more than twofold, in 2008 -54.2%, in 20098 - 4.9%, in 2010 - 6.4%, in 2011 - 22%, in 2012 - 15% and in 2013 - 12%.  
 
"Akcern" Real Estate Corporation is a joint-stock company operating in the real estate market in Armenia since 1993, the structure of which includes the full- fledged realtor companies (limited liability companies), legal consultation, service of real estate estimation, design and construction department and internet marketing department.The corporation is engaged in all types of operations with real estate - purchase, sale, rent, estimation of apartments, houses, mansions, lands, summer houses, and commercial real estate (industrial facilities, etc.). 
 
Besides, the company is engaged in construction, architecture, design and has a big success in the sphere in recent years. The staff of the company consists of skilled realtors, lawyers, appraisers, builders, architects and designers who provide highly professional support in the solution of problems with real estate. Besides, the considerable number of the free services, significantly facilitating and making 
comfortable all procedures is included in the practice of work.  During its work "Akcern" strictly adheres to the principles of observance of confidentiality and real support of the client's interests. All activities of corporation are licensed. The company consists of five realtor autonomous firms, authorized to be engaged in all types of operations with any real estate in the territory of Armenia and beyond it. The company's  transactions account for a considerable part of all market transactions. Since April 2009 a new joint venture of "Akcern" Corporation and the "Washington Capital Real Estate Services" Company was opened, with a branch in Los Angeles, USA, with a goal to create corporate communications between the real estate markets of the USA and Armenia and their information exchange.
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