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ARMENIA: Real estate is going up this year

posted onMarch 14, 2018
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The number of real estate transactions closed in Armenia in January this year reached 9140, up by 42% compared to the same month of last year according to the State Committee of Real Estate Cadastre.

Most transactions were recorded in the Armenian capital Yerevan (34.6%),  followed bu Kotayk province (11%), Ararat province (8.8%), Armavir (8%) Gegharkunik (7.7%), Lori (7.1%), Aragatsotn (6.1%), Shirak (5.2%), Tavush (4.8%) and Syunik (4.5%). At the opposite end,  Vayots Dzor province saw the fewest transactions with only 2.1% of the total number. 

The Committe's data reveal that 41.3% of the total transactions were home sales and purchases. 16% of transactions this year were inheritances,  followed by mortgage transactions (13.6%), initial registration of real estate (12.4%), real estate lease transactions (8.2%) and other state registration (8.5%).

The average market price of one square meter in blocks of apartments in Yerevan grew by 1.6% in January 2018, compared with December 2017.  However, when compared to January 2017 the price was down by 0.9%.

The highest prices were registered in the capital's administrative Kentron (centre) district, 485,000 drams per square meter, and the lowest in the Nubarashen district 155,300 drams per sqaure meter.

According to the report, the average market price of one square meter in blocks of apartments outside Yerevan rose 0.1% month-on-month but fell  6.5% year-on-year in January 2018.

The highest price was recorded in the town of Tsaghkadzor, a popular resort, 292,400 drams and the lowest in the communities of Dastakert and Shamlug in Syunik and Lori provinces respectively 8,000 drams.

REAL ESTATE ARMENIA

New restrictions for real estate transactions 

Earlier this month, the Armenian Central Bank set restrictions for real estate transactions ARKA news agency reported.  The Armenian National Assembly amended on 1 March 2018, the law on money laundering and terrorism financing. The amended law stipulated that money in  real estate transactions worth over AMD 50 million – ($104,000) must be transferred, not handed.

Vakhtang Abrahamyan, deputy chairman of the Central Bank of Armenia, said that Armenia adopted a legislative package on money laundering yet in June 2014, but there were some faults in the package, especially taking into account Armenia’s commitments toward the United Nations. In his opinion, the new amendment will lessen money laundering ARKA reported.

REAL ESTATE ARMENIA

Yerevan at a glance
Nickname: Pink city because of the extensive use of local pink tufa stone which can vary from pink to a light purple  Founded as Erebuni by Argishti: 782 B.C. City status by Alexander II of Russia: 1 October 1879 Area (total): 223 km2 (86 sq mi) Elevation: 990 m (3,250 ft) Population (total): 1,075,800 (density): 4,824/km2(12,490/sq mi)  Airport: Zvartnots International Airport