Wednesday, November 22 2017 17:32
Alina Hovhannisyan

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

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%).

POST A COMMENT
Input digits     


News
Expert forecasts that growth of business activity in Armenian economy  to reach 7% this year Expert forecasts that growth of business activity in Armenian economy  to reach 7% this year 
Wizz Air to start operating flights to 4 new routesWizz Air to start operating flights to 4 new routes
ZCMC paid unprecedented taxes in 2022, exceeding the figure of the previous year by almost two and a half times.ZCMC paid unprecedented taxes in 2022, exceeding the figure of the previous year by almost two and a half times.
Armenian NPP comments on Azerbaijani Human Rights Commissioner`s call Armenian NPP comments on Azerbaijani Human Rights Commissioner`s call 
Armenia`s IT sector rapidly developing - reps Armenia`s IT sector rapidly developing - reps 
Armenia, Qatar discuss opportunities for investment cooperation Armenia, Qatar discuss opportunities for investment cooperation 
44,929 more officially registered jobs in Armenia as against last  year44,929 more officially registered jobs in Armenia as against last  year
Italian businesses interested in Armenia`s investment environment Italian businesses interested in Armenia`s investment environment 
Vahan Kerobyan raises Artsakh issue at Global Forum on Food and  Agriculture in BerlinVahan Kerobyan raises Artsakh issue at Global Forum on Food and  Agriculture in Berlin
Corporacion America  CEO expresses readiness to increase investments  in ArmeniaCorporacion America  CEO expresses readiness to increase investments  in Armenia
Loss ratio in CMPTL market decreased from 79% to 66% in 2022 Loss ratio in CMPTL market decreased from 79% to 66% in 2022 
Armenian banks record 3-fold growth in net profit in 2022Armenian banks record 3-fold growth in net profit in 2022
901 transactions to amount of over AMD 56bln effected under economic  modernization programme in 2022901 transactions to amount of over AMD 56bln effected under economic  modernization programme in 2022
Armenia`s economy will not be able to withstand the expansion of  Turkish goods- EconomistArmenia`s economy will not be able to withstand the expansion of  Turkish goods- Economist
Armenia`s government to support hotels in Syunik, Vaiots DzorArmenia`s government to support hotels in Syunik, Vaiots Dzor
In Armenia, terms for removing arrest from citizens` accounts to be  reduced to 1-2 days from previous 7 days or moreIn Armenia, terms for removing arrest from citizens` accounts to be  reduced to 1-2 days from previous 7 days or more
Share of Armenia`s authorized capital in  EDB increased to 4.2291%,  while Russia`s stake in EDB decreased  to 44.7878%  Share of Armenia`s authorized capital in  EDB increased to 4.2291%,  while Russia`s stake in EDB decreased  to 44.7878%  
Armenia, Germany discuss number of issues on cooperation in economic  sectorArmenia, Germany discuss number of issues on cooperation in economic  sector
$350mln to invested in Zvartnots International Airport$350mln to invested in Zvartnots International Airport
Declaration of income: We have not achieved tax egalitarianism -  ExpertDeclaration of income: We have not achieved tax egalitarianism -  Expert
In Jan-Nov 2022, Armenian-Georgian trade turnover doubled compared to  2021, amounting to $759 million- PashinyanIn Jan-Nov 2022, Armenian-Georgian trade turnover doubled compared to  2021, amounting to $759 million- Pashinyan
Irakli Garibashvili announces about 70% increase in foreign trade  turnover with ArmeniaIrakli Garibashvili announces about 70% increase in foreign trade  turnover with Armenia
The beneficiary of The beneficiary of "The Power of One Dram" in January is the educational program "Talentum"
Fly Arna airline announces launch of new nonstop flights to Saint  PetersburgFly Arna airline announces launch of new nonstop flights to Saint  Petersburg
Vardan Aramyan: With the current quality and level of investments,  there is no need to talk about the growth of the economy`s potentialVardan Aramyan: With the current quality and level of investments,  there is no need to talk about the growth of the economy`s potential
Ministry of Economy of Armenia expects that ferry service to start  operating in Q1 2023Ministry of Economy of Armenia expects that ferry service to start  operating in Q1 2023
Armenia`s gross international reserves move down from historical highArmenia`s gross international reserves move down from historical high
Armenia`s tax revenues AMD 1,926bln in 2022Armenia`s tax revenues AMD 1,926bln in 2022
Robert Khachatryan: receiving station and satellite control center to  be put into operation during 2023Robert Khachatryan: receiving station and satellite control center to  be put into operation during 2023
Armenia extending restrictions on import of cement and clinkerArmenia extending restrictions on import of cement and clinker
New Year in Idram. results of 2022New Year in Idram. results of 2022
Ameriabank named Best Foreign Exchange Bank in Armenia by Global FinanceAmeriabank named Best Foreign Exchange Bank in Armenia by Global Finance
Economic growth in 2022 is not inclusive and leads to widening of  social gap - Luys FoundationEconomic growth in 2022 is not inclusive and leads to widening of  social gap - Luys Foundation
In 2022, social investments of Zangezur Copper-Molybdenum Plant  amounted to about 3.5 billion dramsIn 2022, social investments of Zangezur Copper-Molybdenum Plant  amounted to about 3.5 billion drams
Tariff for final consumers of electricity in Armenia will remain  unchanged in 2023Tariff for final consumers of electricity in Armenia will remain  unchanged in 2023
CBA to put into circulation new batch of 3rd generation thousandth  banknotes from January 23, 2023CBA to put into circulation new batch of 3rd generation thousandth  banknotes from January 23, 2023
Vahan Kerobyan: Unemployment rate in Armenia in 2023 will be below  10%Vahan Kerobyan: Unemployment rate in Armenia in 2023 will be below  10%
$56mln recovered to state budget in 2022$56mln recovered to state budget in 2022
CBA improves net private transfers forecast for 2022CBA improves net private transfers forecast for 2022
CBA improves unemployment forecast for 2022 CBA improves unemployment forecast for 2022 
RF Deputy Minister: financial institutions of Russia, Armenia are  expanding  network of correspondent relationsRF Deputy Minister: financial institutions of Russia, Armenia are  expanding  network of correspondent relations
Vahan Kerobyan: Number of labor migrants to reduce significantly next  yearVahan Kerobyan: Number of labor migrants to reduce significantly next  year
EDB analysts expect 12% growth in mutual trade in EAEU by end of 2022EDB analysts expect 12% growth in mutual trade in EAEU by end of 2022
Analyst: Global confrontation between West and Russia urgently  dictates the acceleration of integration processesAnalyst: Global confrontation between West and Russia urgently  dictates the acceleration of integration processes
Minister of Economy voices main risks to achieve economic growthMinister of Economy voices main risks to achieve economic growth
Final phase of ADB-financed bypass road program startsFinal phase of ADB-financed bypass road program starts
Deputy Prime Ministers of Armenia, Russia took part in solemn  ceremony of commemorative cancellation of stamp on establishment of  diplomatic relations between countriesDeputy Prime Ministers of Armenia, Russia took part in solemn  ceremony of commemorative cancellation of stamp on establishment of  diplomatic relations between countries
First stage of work under First stage of work under "Engineering City" program has been  successfully completed
Deadlines for submission of income declarations by individuals have  been changedDeadlines for submission of income declarations by individuals have  been changed
Armenia, Netherlands discuss new opportunities for cooperation in  technological fieldArmenia, Netherlands discuss new opportunities for cooperation in  technological field
Over 700,000 officially registered employees in Armenia Over 700,000 officially registered employees in Armenia 
Armenian Parliament elects CBA Deputy Governor and new member of CBA  Board Armenian Parliament elects CBA Deputy Governor and new member of CBA  Board 
IFC, Amundi-Acba Launch Partnership to Increase Investment in Armenia’s InfrastructureIFC, Amundi-Acba Launch Partnership to Increase Investment in Armenia’s Infrastructure
Structural reforms more urgent amid significant uncertainty – IMFStructural reforms more urgent amid significant uncertainty – IMF
Experts: Armenia`s energy security is key component of national  securityExperts: Armenia`s energy security is key component of national  security
Vahe Hovhannisyan appointed new Minister of Finance of ArmeniaVahe Hovhannisyan appointed new Minister of Finance of Armenia
First in Armenia. IDBank presents Visa Travel card for travel loversFirst in Armenia. IDBank presents Visa Travel card for travel lovers
Structural reforms more urgent amid significant uncertainty – IMFStructural reforms more urgent amid significant uncertainty – IMF
Turkish citizens own 100 real estates in Armenia, Azerbaijani  citizens - up to 10Turkish citizens own 100 real estates in Armenia, Azerbaijani  citizens - up to 10
Babken Tunyan: IT tax benefits are expenses that fall on the  shoulders of other taxpayersBabken Tunyan: IT tax benefits are expenses that fall on the  shoulders of other taxpayers
Read more


Exchange rates
26.01.2023
RUB5.730.00
USD395.65-0.37
EUR431.461.14
GBP490.253.03
CAD295.57-0.43
JPY30.500.03
CNY58.44-0.05
CHF430.901.70