Housing prices in Armenia up 0.1% in Q1 2016

 

According to the State Committee of Real Estate Register of Armenia, the prices of apartment blocks increased 0.3% in average in Q1 2016 versus the same period of 2015 to 180.6 thousand drams per sq. m.  (0.1% growth vs Q4 2015). In particular, the prices of apartments in Yerevan totaled 274.6 thousand drams per sq. m. (up 0.2% y-o-y and 0.04% vs Q4 2015).  In the regions, this indicator totaled 86.6 thousand drams per sq. m. (up 0.4% y-o-y and 0.1% vs Q4 2015).  

 

Prices of private houses in Armenia increased 0.04% to 188.3 thousand drams per sq. m. in average, with no changes within the year and the quarter. The average prices of houses in Yerevan totaled 286.7 thousand drams per sq. m. while in the regions the prices increased 

0.2% y-o-y to 89.9 thousand drams per sq. m. (an insignificant growth for Q4).  In total, real estate prices (both apartment blocks and private houses) increased 0.1% to 280.6 drams per sq. m. withy a 0.02% growth for Q4 2015. 

 

According to the State Real Estate Register, the highest prices of apartments and private houses are still in the Center district in Yerevan  - 428 thousand drams per sq. m. and 476.1 thousand drams per sq. m. in average, respectively, with no changes for the year. 

 

The lowest prices of apartments and private houses are in the Nubarashen community  - 157.1 thousand drams per sq. m. (up 0.4% y-o-y) and 150.8 thousand drams per sq. m. (no changes for the year), respectively.   

 

 

In the regions, the highest prices of private houses and apartments are in the resort town of Tsakhkadzor (Korayk region) - 305 thousand drams per sq. m. (no change y.o.y) and 292.4 thousand drams per sq. m.  (no change y.o.y). Abovyan (Kotayk region) goes the second and 

Vagharshapat (Armavir region) is the third. 

 

Marina Chatinyan, the head of the Bars Real Estate Agency, told ArmInfo in February that stagnation in the market will continue for at least 2 years.  The forecasts for 2016 are not optimistic and the real estate agencies anticipate that the market will start growing 

slowly after reaching the lowest point, she said.  The specialist explains the standstill with the global political and economic situation, deteriorating economies in the partner-countries, 

especially Russia, that affected the money remittances to Armenia and population incomes. All this is coupled with such restraining factors as unfriendly neighbor-states and economic blockade. 

 

Meantime, Head of Akcern Real Estate Concern Hakob Baghdasaryan says the year 2017 will be transitional for the real estate market of Armenia. Baghdasaryan believes 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.