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.


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