Decrease in prices and activity at Armenian Real Estate Market

PanARMENIAN.Net - Within the last 9 years real estate deals have increased fivefold in Armenia, totaling 159367 in 2008. According to RA Real Estate State Cadastre Committee 2008 report, real estate deals tend to increase within the last years.

Apartment purchases constitute 30.6% of total deals. Apartment sale an purchase rate decreased by 23,5% in 2008 as compared to 2007 results. Activity decay was first registered in the last quarter of 2008.



In 2008 the average real estate price comprised AMD 296 300 per square meter, which is 15,2% higher than in 2007. Most expensive apartments are located in Kentron, Arabkir and Kanaker-Zeitun Communities with AMD 483 300, 403 400 and 305 700 per square meter. The lowest rates were registered for Nubarashen Community apartments, totaling AMD154 500 per square meter. The financial crisis has affected not only the activity but also the prices at the Armenian Real Estate Market. Thus, apartment rates in Yerevan fell by 1.8% during the last quarter of 2008.



In 2008 the real estate sale and purchase deals number decreased by 18.9% in the regions of Armenia, yet in 2009 apartment rates grew by 31.6%. The growth was constituted by the high demand for apartments assigned to Azeri refugees and disaster area population within the framework of state housing program.

Statistics show that private property demand has fallen in Armenia. Sale and purchase deals rate has decreased by 14.6% as compared to 2007 results: 20.6% decrease in Yerevan and 12.7% in the regions. According to 2008 results, the number of real estate sale and purchase deals comprised 5774 in Armenia: 1268 in Yerevan and 4506 in the regions. Regardless of activity decay in real estate market, the private property rate increased 18.3% in Yerevan and 33.3% in the regions.