Thursday, September 12 2024 19:34

ArmInfo. Armenia's real estate market may grow significantly by the end of the year. These estimates were shared by Arsen Avetisyan, the founder of the Armenian  Association of Real Estate Agents, during a press conference on  September 12.

He explained that this will be due to the fact that by  the end of the year the law on the return of income tax within the  framework of mortgage lending expires. For developers it will be the  last opportunity to sell off residential real estate. In addition,  the activity in the market will be facilitated by industry events,  including the major exhibition TOON Expo (October 25-27).

Thus, from September to the end of October and continuing on through  inertia (until the end of the year), as Avetisyan noted, Yerevan will  experience an increase in real estate transactions.  The first  quarter of 2025 will be realtively calm and market activity should be  expected only from April 2025.  He also highlighted the situation in  other cities of Armenia, such as Hrazdan, Abovyan, Echmiadzin, Nor  Achin, where there has been a deficit of new buildings for many  years. Now, according to him, these cities are experiencing  significant development. According to Avetisyan, consequently, the  real estate market outside of Yerevan will also be active in the  upcoming years,  as there is an accumulated demand.

In his turn, the Chairman of the Board of the Association of Real  Estate Agents Artur Mnatsakanyan noted that companies, that began  construction projects 3 years ago, unaware of the abolition of tax  deductions, will have to find other ways to fill the financial gap.  According to Mnatsakanyan, they will use various instruments for this  purpose, including discounts, installments and others. In other  words, their offers will be quite attractive to buyers.

At the same time, the head of the Council of the Association  recommended buying residential real estate now, because after 2025,  according to his estimates, there will be a deficit in the market of  new buildings.  he said.  Independent experts believe that due to  various stimulating endogenous  (tax deductions) and exogenous  (capital flight to Armenia) factors, the real estate market in  Armenia is currently thriving.  However, these factors are slowly  being neutralized and there is a gradual, almost imperceptible price  decrease in the market. In their opinion, over the past 2-3 years the  country has had a completely inadequate price policy in terms of  fundamental factors. Prices in Yerevan have become indistinguishable  from those in Moscow, Sochi, Prague and higher than in Madrid or  Lisbon.

It should be noted that according to the data from the Real Estate  Cadastre, in the first half of 2024, there were 7,820 real estate  sale and purchase transactions  in Yerevan, which is 21.7% higher  than a year ago, while the growth for the half-year was 10.3%.  The  lion's share of purchase and sale transactions in the capital falls  on apartments 59,7% or 4674, with an annual growth of 21,1% (with a  growth of 10,9% for the half-year). Then follows transactions with  garages - 1466 or 18,7% (an annual growth of 2 times, with growth of  48,5% for the half-year); private houses - 619 or 7,9% (an annual  decline of 16,2%, with decline of 15,6% for the half-year); public  buildings - 519 or 6.6% (an annual growth by 12.6%, with growth by 3%  during the half-year); land - 479 or 6.1% (an annual decrease by 16%,  with decrease by 17.1% during the half-year); industrial buildings -  63 or 0.8% (an annual decrease by 3.1%, with a decrease of 13.7%  during the half-year).  A total of 32,658 real estate transactions  were made in Yerevan during the reporting period (with an annual  growth of 14.8%, and a growth of 2% for the half-year), which  constitutes 27.1% of the total number of real estate transactions  made in the Republic.