Housing prices in Armenia in 2016 remained unchanged, experts are not optimistic yet

ArmInfo. In 2016 the  average market price of housing in Armenia grew by only 0.2% to 184.6  thsd AMD per 1 sq m. In Q4 alone, the average market prices of  housing dropped by 0.1%.

The State Committee of the Armenian Real Estate Cadaster reports that  in 2016 versus 2015, 1 sq m of housing in the apartment buildings  rose in price by 0.3% to 180.8 thsd AMD (down 0.1% in Q4 alone).In  Yerevan the flat price made up 274.9 thsd AMD per 1 sq m (up 0.2%  versus 2015, down 0.01% versus Q3 2016), and in the provinces the  price was 86.7 thsd AMD per 1 sq m (up 0.4% versus 2015, up 0.09%  versus Q3 2016).

Meanwhile, in 2016 the average price of private houses rose by 0.05%  versus 2015 and totaled 188.3 thsd AMD per 1 sq m (down 0.03% versus  Q3 2016), while the average price of private houses in the provinces  grew by 0.1% versus 2015 and totaled 89.9 thsd AMD per 1 sq m, with  an insignificant growth versus Q3 2016. In Yerevan private house  prices grew by 0.03% versus 2015 and totaled 286.7 thsd AMD per 1 sq  m (down 0.04% versus Q3 2016).

In general, the price of 1 sq m of housing in Yerevan (flats and  private houses) rose by 0.1% versus 2015 and made up 280.8 thsd AMD  (down 0.1% versus Q3 2016).

The source says that the highest flat prices in Yerevan are in Center  (Kentron) community - 428.1 thsd AMD per 1 sq m (up 0.02% versus  2015, down 0.13% versus Q3 2016). Arabkir ranks next - 357.2 thsd AMD  per 1 sq m (up 0.2% versus 2016, down 0.06% versus Q3 2016). The  specified communities are also in the lead in terms of private house  prices: Kentron - 476.2 thsd AMD per 1 sq m (up 0.02% versus 2015,  down 0.03% versus Q3 2016) and Arabkir - 383.1 thsd AMD per 1 sq m  (up 0.03% versus 2015, down 0.03% versus Q3 2016).

The lowest housing prices in Yerevan remain in Nubarashen community -  157.4 thsd AMD per 1 sq m of flats (up 0.4% versus 2015, down 0.13%  versus Q3 2016) and 150.8 thsd AMD per 1 sq m of private houses (no  changes registered).

As regards the provinces, the highest prices of private houses are in  Tsaghkadzor (Kotayk province) - 305 thsd AMD per 1 sq m (no changes  versus 2015). The following towns rank next: Abovyan - (Kotayk  province) - 157.3 thsd AMD per 1 sq m (up 0.2% versus 2015, down  0.03% versus Q3 2016) and Vagharshapat (Armavir province) - 153.1  thsd AMD per 1 sq m (no changes versus 2015, down 0.03% versus Q3  2016). The highest prices of flats are also in the same towns:  Tsaghkadzor - 292.4 thsd AMD per 1 sq m (no changes versus 2015 and  versus Q3 2016), Abovyan - 155.1 thsd AMD per 1 sq m (no changes  versus 2015, down 0.03% versus Q3 2016) and Vagharshapat - 154.2 thsd  AMD per 1 sq m (up 0.1% versus 2015, no changes versus Q3 2016).

According to President of "AKCERN" REAL ESTATE CORPORATION Hakob  Baghdasaryan, 2017 will be a transition year in the context of  tangible intensification of transactions on the real estate market of  Armenia. If the trend to find an integrated approach to settlement of  problems is maintained, in 2017 the property prices may grow by 5%,  the expert says, noting that by the end of the year the market may  activate. He adds that the Armenian real estate market will  demonstrate tangible growth in 2018.  Baghdasaryan draws a parallel  with the process of development of the economy, which is also in the  transition phase. "The geopolitical factors that influence the real  estate market activation in Armenia are numerous. The matter also  concerns the activation of the Iranian market and deeper integration  with Georgia. At the same time, the economic situation in the world  may improve due to expected growth in oil prices, he notes.