Tuesday, July 28 2020 16:04

ArmInfo. Today there is a decrease in transactions for the purchase and sale of apartments on the real estate market in quantitative terms, while prices are  demonstrating growth. Economist, Director of the Real Estate Exchange  Artyom Pribylskiy said this in a telephone conversation with ArmInfo  correspondent.

"Usually, as prices rise, the number of transactions also grows, but  due to the great uncertainty that has developed due to the  coronavirus, many are postponing the decision to sell real estate. At  the same time, the rate of decrease in the amount of supply on the  market turned out to be higher in absolute terms, and the rate of  decrease in buyers was slightly less, as a result, we had an increase  in apartment prices, "the expert explained.

In this vein, he drew attention to the fact that the epidemiological  situation "gained strength" and in some sense became unmanageable.  "If in March it was still possible to correct the situation, when not  so high rates were recorded per day, now, unfortunately, we are faced  with the fact that the number of new infections every day ranges from  300 to 500. And in this regard, the uncertainty in the real estate  market will continue>, Pribylsky noted.

In addition, due to the pandemic, there is no opportunity to arrive  and leave the country, the volume of private transfers has decreased,  which, according to the head of the Real Estate Exchange, also  creates additional difficulties. At the same time, he drew attention  to the fact that in the conditions of the pandemic today in Armenia  more and more people began to wear masks, the fear factor has  increased in the country, which, according to the expert, will affect  the behavior of people in terms of compliance with sanitary and  epidemiological rules. When asked whether the situation on the real  estate market will change by the end of the year, the expert ruled  out the likelihood of a sharp improvement in the situation, noting  that the real estate market is likely to remain at the same level.

In a conversation with the head of the Real Estate Exchange, the  issue of amendments to the RA Law "On Property Tax" was also raised,  the adoption of which, in his opinion, was unreasonable. He explained  that after 2021, changes to the law in a negative way will affect the  individual construction of houses. <There is nothing good in this.  When these mansions, "castles" were built, investments were made in  industry, wages were paid to workers, and local construction  materials were bought. Instead of encouraging people to invest in  construction, the opposite is happening. In general, the new  government does not make gross or wild mistakes, but these changes to  the law are akin to the decisions of the previous authorities, "the  expert noted.

To recall, during the previous conversation, Pribylsky noted that the  demand during the pandemic in terms of sale and purchase transactions  will remain mainly on land, since today this asset is considered a  promising financial investment.

Operating with the data of the RA Real Estate State Committee for the  1st half of 2020, we can say that the expert's forecast was quite  justified, since with an overall significant decrease in the number  of transactions, positive dynamics (both in Yerevan and in the  regions) was recorded in terms of land transactions including for  agricultural purposes.

Thus, according to the data, in the first half of the year in the  republic there were 19,979 transactions for the purchase and sale of  real estate, which is 12.1% lower than the indicator of a year ago,  and in comparison with the second half of 2019, the decline was  recorded at the level of 30.6%. Of the total number of transactions,  land accounts for the lion's share (46.2% or 9,240), with an increase  of 4.4% per annum, and with a decline in comparison with the second  half of 2019 by 21.4%. The share of transactions for the purchase and  sale of apartments accounts for 27.5% or 5,501. At the same time,  this indicator showed a decline of 29.3% over the year, and by 43.1%  compared to the second half of 2019.

In Yerevan, during the reporting period, 29.9% of transactions for  the purchase and sale of real estate were completed, with a y-o-y  decline of 27.2%, and a decline in the II half of 2019 by 37.9%. The  lion's share of transactions in Yerevan falls on the purchase and  sale of apartments (3,454), which is 31.8% lower than a year ago, and  a decline in the II half of 2019 by 43.8%. At the same time, growth  is observed in terms of transactions with land (by 9.5% per annum),  including agricultural value (by 11.8% per annum).

In the regions of Armenia, the number of transactions in y-o-y terms  decreased by 3.5% to 14,001, with a decline in the II half of 2019 by  26.9%. At the same time, the lion's share falls on land transactions  (61.1% or 8,550), the number of which increased by 4% over the year,  with a decline over the second half of 2019 by 22.2%. At the same  time, transactions for the sale and purchase of agricultural land  (4,892) increased by 6.5% over the year, and compared to the II half  of 2019 decreased by 20.1%. According to official data, 2,047  transactions for the purchase and sale of apartments were carried out  in the regions of the Republic of Armenia, which is 24.7% less than a  year ago, with a decline in the II half of 2019 by 41.9%.

It should be noted that according to the RA Real Estate State  Committee, prices for apartment buildings in Yerevan increased by an  average of 13.8% in y-o-y terms, with an increase in the II half of  2019 - by 6.2%.  Traditionally, the most expensive apartments are in  the Kentron administrative district, where prices are registered at  the level of AMD 665.7 thousand / 1 sq. m., followed by Arabkir (AMD  462 thousand / 1 sq.  m.) and Davtashen (AMD 346.3 thousand / 1 sq.  m.). The most affordable apartment buildings in the capital continue  to be in the Nubarashen administrative district - 188.4 thousand  drams / 1 sq. m.

In the regions, the increase in prices for apartment buildings was  registered on average at the level of 5.7% in y-o-y terms, and 3.2%  compared to the second half of 2019. Traditionally, the highest  prices for apartment buildings were registered in Tsaghkadzor - 284.3  thousand AMD / 1 sq. m., Abovyan -185.2 thousand AMD / 1 sq.m. and  Vagharshapat -156.2 thousand drams / 1 sq.m. The lowest prices are in  Tumanyan (Lori region) - 24 thousand drams / 1 sq.m.