Vahan Kerobyan: Intra-market activity to lead to decrease in real  estate prices

ArmInfo.The real estate market has now calmed down - it is too early to talk about a decline in prices, but there is no noticeable growth either. Minister of Economy of Armenia Vahan Kerobyan said on March 2 on the sidelines of the event dedicated to the signing of an agreement on the opening of local representative offices of GIZ and KfW in Armenia.

However, in his opinion, the observed intra-market indicates a  downward trend in prices.  The minister explained: "Potential buyers  of real estate are monitoring the situation and do not immediately  invest in repairs or purchases (including for renting out). Many may  take a risk causing supply to exceed demand and prices to decline>.

He ruled out the scenario of a return to last year's prices, noting  that this is possible only in the event of hostilities. "Do you know  that we are now actively working on a peace treaty and to ensure the  security of the citizens of Armenia," he concluded.

It should be noted that according to the data of the Cadastre, in  January 2023, prices for apartments in Yerevan rose by 0.5% over the  month, and by 11.4% compared to January 2022. In the regions of  Armenia, prices for apartments increased by 0.8% over the month, by  15.7% over the year.

For the whole of 2022, the average market value of real estate in  multi-apartment buildings in Yerevan increased by 13.9%, amounting to  385.7 thousand AMD / 1 sq.m. A higher increase in the average market  value of apartments was recorded in the regions of Armenia - by 18.9%  to 115.3 thousand AMD / 1 sq.m.