Wednesday, February 3 2021 18:43
Alina Hovhannisyan

The real estate market in Armenia tends to decline; it all depends on  government policy

The real estate market in Armenia tends to decline; it all depends on  government policy

ArmInfo. In 2020, a total of 158 659 real estate transactions were carried out in Armenia, which is 14.7% less than a year ago.

According to the data of the State Committee for Real Estate  Cadastre, of the total number of transactions, Yerevan accounts for  32% or 50,888 transactions (with a y-o-y decline of 20.4%), of which  13,899 are real estate purchase and sale transactions (a decline of  22% over the year).

According to the source, the lion's share of transactions for the  purchase and sale of real estate in the capital refers to apartments  - 8199 or 59%, which is 26.9% less than a year ago.

Following apartments, the largest number of purchase and sale  transactions were made with private houses - 1,610 (decline by 20.5%  per annum), followed by transactions with land - 1,518 (annual growth  by 7.8%), garages - 1 435 (an annual decline of 18.2%), public  buildings - 965 (a decline of 21.2% per annum) and production  facilities - 172 (a decline of 16.5% per year).

To note, in total, 12,635 transactions for the purchase and sale of  apartments were made in Armenia, with an annual decline of 27.6%.

At the same time, the average market value of real estate in  apartment buildings in Yerevan in 2020 in comparison with the same  period of 2019 increased by 7.5% to 338.5 thousand AMD / 1 sq. m.   The highest prices for apartments in Yerevan are traditionally held  by the Kentron (Center) community - on average 644.8 thousand AMD / 1  sq. m. (6.2% annual growth). This is followed by Arabkir, where the  price for apartment is fixed at 452 thousand AMD / 1 sq. m. (8.9%  annual growth). Davitashen closes the top three - 335 thousand AMD /  1 sq. m. (5.1% annual growth).

The lowest housing prices in the capital remain in the Nubarashen  community, where a square meter of an apartment costs an average of  183.1 thousand drams / 1 sq. m., with an annual growth of 3.3%.

In a conversation with ArmInfo correspondent, economist, director of  the Real Estate Exchange Artem Pribylsky noted that the year was very  difficult for the market, especially its last decade, which was  associated with the outbreak of hostilities in Artsakh.  Even if  small changes in the real estate market have been recorded, according  to the expert, this is due solely to the fact that, due to the  pandemic, a large number of people who want to leave the country are  still unable to leave. "This process has been suspended, because many  countries still are closed due to coronavirus infection," Pribylsky  said.  In this context, he stressed that with open borders, the  situation on the real estate market would have developed completely  differently and most likely prices would have gone down. "So it's  really hard to say what will happen tomorrow. We now have a post-war  syndrome. But, I think, the market will definitely straighten out if  the state policy is correct, "he said. In this case, in quantitative  terms, according to the expert, the market may improve at the end of  2021 and during 2022.

POST A COMMENT
Input digits     


News
Deputy Prime Minister Mher Grigoryan spoke with WB Regional Vice  PresidentDeputy Prime Minister Mher Grigoryan spoke with WB Regional Vice  President
Prime Minister reported on the problems in the Zangezur  Copper-Molybdenum CombinePrime Minister reported on the problems in the Zangezur  Copper-Molybdenum Combine
Ameriabank Launches Placement of New Bond Issues for USD 20 Million and AMD 5 Billion Ameriabank Launches Placement of New Bond Issues for USD 20 Million and AMD 5 Billion 
In Armenia, the number of terminated CMPTL contracts jumped 2.5 times  YoY in the first quarter of 2021 In Armenia, the number of terminated CMPTL contracts jumped 2.5 times  YoY in the first quarter of 2021 
MP from the MP from the "My Step" faction: Forecasts of the impending  depreciation of the dram have no economic basis 
Expert: Talk about the construction of a new nuclear power plant in  Armenia does not go beyond political rhetoricExpert: Talk about the construction of a new nuclear power plant in  Armenia does not go beyond political rhetoric
Ardshinbank together with Visa launched an electronic wallet within the Мobile banking appArdshinbank together with Visa launched an electronic wallet within the Мobile banking app
Melkumyan: Melkumyan: "Velvet" government failed in the modernization program of  Metsamor NPP 
Armenia`s trade sector was in decline in January-February 2021Armenia`s trade sector was in decline in January-February 2021
Revenue of the Armenian communications sector in January-February  2021 sank by 4.7% per annumRevenue of the Armenian communications sector in January-February  2021 sank by 4.7% per annum
Passenger transportation in Armenia delayed in decline due to the  coronacrisisPassenger transportation in Armenia delayed in decline due to the  coronacrisis
Get now, pay later, now the same priceGet now, pay later, now the same price
Armenia`s steel industry was in decline by March 2021Armenia`s steel industry was in decline by March 2021
Armenia reduced electricity generation by 5.8% per annum in  January-February 2021Armenia reduced electricity generation by 5.8% per annum in  January-February 2021
Expert: The Central Bank`s initiative is a signal to Expert: The Central Bank`s initiative is a signal to "money bags" or  life under the microscope
RA Issued Eurobonds Are Now Traded on Armenia Securities ExchangeRA Issued Eurobonds Are Now Traded on Armenia Securities Exchange
Armenia`s manufacturing industry continues to sinkArmenia`s manufacturing industry continues to sink
Two-year monitoring of the online labor exchange indicates the  restoration of business optimism-Vahan KerobyanTwo-year monitoring of the online labor exchange indicates the  restoration of business optimism-Vahan Kerobyan
SRC of Armenia encourages decent taxpayersSRC of Armenia encourages decent taxpayers
Converse Bank. New campaign for womenConverse Bank. New campaign for women
Pashinyan to EBRD President: The re-commissioning of transport  communications could help implement new joint projectsPashinyan to EBRD President: The re-commissioning of transport  communications could help implement new joint projects
“Evocabank” CJSC’s bonds have been listed on Armenia Securities Exchange for the first time“Evocabank” CJSC’s bonds have been listed on Armenia Securities Exchange for the first time
 Optimism of the authorities contrary to official statistics: What  will the Armenian economy face? Optimism of the authorities contrary to official statistics: What  will the Armenian economy face?
The Central Bank of Armenia announces its intention to intervene in  the foreign exchange market for the second time in 2021The Central Bank of Armenia announces its intention to intervene in  the foreign exchange market for the second time in 2021
On April 12, Ameriabank will start placing the next tranches of USD  and AMD bonds in the amount of $ 20 million and 5 billion dramsOn April 12, Ameriabank will start placing the next tranches of USD  and AMD bonds in the amount of $ 20 million and 5 billion drams
Ardshinbank and Visa offer smart Visa payment rings for the first time in ArmeniaArdshinbank and Visa offer smart Visa payment rings for the first time in Armenia
Armenia`s unemployment rate drops to 16% in 2020Armenia`s unemployment rate drops to 16% in 2020
Armenia`s SRC: The number of registered micro-entrepreneurship  entities increased by 18% Armenia`s SRC: The number of registered micro-entrepreneurship  entities increased by 18% 
The inflow of foreign investment into the Armenian economy has  declined by 39 in 2020%The inflow of foreign investment into the Armenian economy has  declined by 39 in 2020%
Ex-Minister: Creating a centralized register of bank accounts is an  attempt to adapt the Rolls-Royce engine to your own dreamEx-Minister: Creating a centralized register of bank accounts is an  attempt to adapt the Rolls-Royce engine to your own dream
Armenia`s foreign trade turnover decreased in January-February 2021  by 12.2% per annumArmenia`s foreign trade turnover decreased in January-February 2021  by 12.2% per annum
The financial regulator sees the feasibility of introducing a  centralized register of bank accountsThe financial regulator sees the feasibility of introducing a  centralized register of bank accounts
Armenia`s foreign trade turnover with the EU countries has been  delayed in declineArmenia`s foreign trade turnover with the EU countries has been  delayed in decline
Armenia`s national debt is approaching $9 billionArmenia`s national debt is approaching $9 billion
Armenia`s consumer market recorded inflation of 3.8% in Q1 2021 with  5.2% y-o-y inflation Armenia`s consumer market recorded inflation of 3.8% in Q1 2021 with  5.2% y-o-y inflation 
Up to 150 million cubic meters of Russian gas to be supplied to  Armenia through AzerbaijanUp to 150 million cubic meters of Russian gas to be supplied to  Armenia through Azerbaijan
IDBank offers the most flexible and profitable conditions for mortgage borrowersIDBank offers the most flexible and profitable conditions for mortgage borrowers
Armenia reduced exports of copper ore, increasing exports of zinc and  molybdenum concentrates and ores containing precious metalsArmenia reduced exports of copper ore, increasing exports of zinc and  molybdenum concentrates and ores containing precious metals
Russia and Brazil became the main sugar import markets for Armenia in  2020Russia and Brazil became the main sugar import markets for Armenia in  2020
EU Ambassador and Armenian NPP leadership discussed opportunities for  expanding cooperationEU Ambassador and Armenian NPP leadership discussed opportunities for  expanding cooperation
Deputy Minister: Unblocking of economic ties and transport  communications in the South Caucasus is beneficial to all partiesDeputy Minister: Unblocking of economic ties and transport  communications in the South Caucasus is beneficial to all parties
Moscow plans to discuss the prospects of creating logistics centers  for groupage cargo from ArmeniaMoscow plans to discuss the prospects of creating logistics centers  for groupage cargo from Armenia
Ardshinbank upgrades its branches in Hrazdan and DilijanArdshinbank upgrades its branches in Hrazdan and Dilijan
Armenia`s gross international reserves exceeded $3 billion for the  first time with a 33% jump in FebruaryArmenia`s gross international reserves exceeded $3 billion for the  first time with a 33% jump in February
Armenia and Malta move to eliminate double taxationArmenia and Malta move to eliminate double taxation
Armenian tax officials report over-fulfillment of quarterly tax  collection plan: Finance Ministry promises to take new heightsArmenian tax officials report over-fulfillment of quarterly tax  collection plan: Finance Ministry promises to take new heights
New WB forecast: Armenia ranks second in terms of GDP growth in 2021  among the EAEU countries, and at the rate of 2022 it shares the lead  with KyrgyzstanNew WB forecast: Armenia ranks second in terms of GDP growth in 2021  among the EAEU countries, and at the rate of 2022 it shares the lead  with Kyrgyzstan
New forecast of the Central Bank of Armenia for 2021: GDP growth by  1.4%, export growth by 1-3%, import decline 2-4%, unemployment rate  18.6%New forecast of the Central Bank of Armenia for 2021: GDP growth by  1.4%, export growth by 1-3%, import decline 2-4%, unemployment rate  18.6%
Telecom Armenia summed up the results of the <Coding skills> project Telecom Armenia summed up the results of the project 
The Armenian Stock Exchange is once again recognized as the The Armenian Stock Exchange is once again recognized as the "Best  Stock Exchange in the South Caucasus"
World Bank improves Armenia`s GDP growth forecast for 2021 to 3.4%World Bank improves Armenia`s GDP growth forecast for 2021 to 3.4%
The Central Bank of Armenia predicts an increase in the net inflow of  private transfers in the range of 7-9 in 2021%The Central Bank of Armenia predicts an increase in the net inflow of  private transfers in the range of 7-9 in 2021%
Ardshinbank on April 6 will put up for sale a tranche of AMD and  dollar bonds in the amount of 3.3 billion drams and $10 millionArdshinbank on April 6 will put up for sale a tranche of AMD and  dollar bonds in the amount of 3.3 billion drams and $10 million
 Ameriabank Got Quality Excellence Award 2020 from Raiffeisen Bank  International Ameriabank Got Quality Excellence Award 2020 from Raiffeisen Bank  International
UBA, A. Ananyan: There are no prerequisites for the emergence of  UBA, A. Ananyan: There are no prerequisites for the emergence of  "mortgage bubbles" 
UBA, A. Ananyan: In 2021, the fight against the consequences of the  coronavirus-generated crisis will continueUBA, A. Ananyan: In 2021, the fight against the consequences of the  coronavirus-generated crisis will continue
UBA, A. Ananyan: The share of non-performing loans may grow to 10%  from the current 6.6% UBA, A. Ananyan: The share of non-performing loans may grow to 10%  from the current 6.6% 
Fitch confirmed Armenia rating at the level of Fitch confirmed Armenia rating at the level of "B +" with a stable  outlook, waiting in 2021 GDP growth by 3.2%
The later the economy will be restored, the higher the probability of  a foreign exchange rate and yield of bonds The later the economy will be restored, the higher the probability of  a foreign exchange rate and yield of bonds 
Minister: 580 subvention programs totaling AMD 26.2 billion were  implemented in Armenia in 2020Minister: 580 subvention programs totaling AMD 26.2 billion were  implemented in Armenia in 2020
Read more


Exchange rates
14.04.2021
RUB6.860.13
USD519.34-0.09
EUR620.923.01
GBP715.030.03
CAD413.851.11
JPY47.640.13
CNY79.460.10
CHF563.642.40