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суббота, 14 июля 2012 г.

Only Kocharyan can rescue the Armenian market of real estate

A week ago the second president of RA Robert Kocharyan, speaking about the possible return to big-time politics, noted that it can occur in the presence of three factors. Kocharyan noted absence of considerable improvement of economy and welfare of people and, as a result, emigration growth; demand for its return to big-time politics from various public layers; his internal conviction that it can cardinally improve a situation. 
There is still the fourth factor about which Robert Kocharyan didn't start talking but which can have big impact on its decision to return to big-time politics. It is a question of real estate of Armenia reigning in the market and, in particular, Yerevan unfavourable, it is possible to tell, a disturbing situation. It is known that Kocharyan is personally interested in development of this market, and it can't be as the detached onlooker.
Statistically, only in August of this year in Yerevan recession of the prices for apartments made 4 %, and in comparison with 2008г. (after Kocharyan's leaving from a position of the president) – 15 %. It in dramovy expression as supernumeraries compare the prices in dramas and say that the prices decreased on 44 thousand драмов counting on one square meter. And if recession of the prices to compare in a dollar equivalent, it is possible to tell that it makes nearly 25 %, as in comparison with 2008г. the dollar depreciated for 20 %. But there is more to come: experts say that recession of the prices for real estate will have permanent character as demand for apartments several times concedes to the offer that should influence market structure.
In one of the interviews given two years ago, Robert Kocharyan, speaking about economic policy of the government, told that the government to make active economy, should create demand for apartments that doesn't become at appropriate level. Undertaken by the government within the last two years steps show that there ignored Robert Kocharyan's criticism, differently the prices for apartments not only wouldn't decrease, but at least remained at the same level. 
We can't tell, as far as Kocharyan will manage to improve state of the economy and people, to stop emigration, but is unequivocal that having returned to the power, it can suspend recession of the prices in the real estate market for it has a ready recipe of the solution of this question. It is known that in days of the power it was possible to Kocharyan to provide great demand for real estate. It wasn't so difficult. Kocharyan knew a livestock of the corrupted officials in the country, approximately knew, what at them the shadow income and, respectively, forced them to buy the apartment in a soovetstviye with the income. Result was that the construction sphere really prospered, and the economy developed in two-place figures. According to the statistics data of the CIS, on volumes of construction of apartments per capita Armenia is on the first place, and it in that case when in the country there is a big outflow of people.
Officials didn't need so many apartments, but they preferred to buy them, rather than to say goodbye to the so pleasant positions, borrowing which they got not only unnecessary apartments, but also many other necessary things. As in Armenia there was a solvent demand, also the offer on apartments therefore the prices constantly rose automatically was born. On a rise in prices the role was played by favourite effect of animation of Kocharyan: many considered apartment acquisition in Yerevan as successful capital investment.
Today nobody forces officials to buy apartments, moreover, they started to expose the acquired real estate therefore the market was sated that led to recession of the prices on sale. This recession can be even deeper, if the part engaged in construction doesn't wait for Kocharyan's return: many of them believe that old and kind times still will return. 
In a word, the market of real estate of Yerevan, despite relative recession, is in an expectation condition: if Kocharyan really returns, there will be a serious lifting, otherwise collapse is inevitable.

Armenian market of real estate: poll

Recently conversations on crisis in the Armenian market of real estate are often audible. NEWS.am carried out small poll among the agencies which are engaged in a purchase and sale to real estate, about a situation in the market in 2012 and, in particular, changes for the last month.

The director of Viva Realty agency Edward Arutyunyan noted that in comparison with the beginning of year of considerable falling of the prices isn't present, but there is a small growth of number of transactions. For the last month in the market changed nothing, activity special isn't present. The prices for apartments are reduced today by those persons who hurry to sell them.

The director of Bars agency Marina Chatinyan told that demand for real estate was noticeably reduced, but considerable reduction of prices while isn't present. The market is more or less active on suburbs of Yerevan, and in the center, on the contrary, is passive. However, according to her, as a whole «this year in the market it is more sad, than in the past».

And in Alpha agency noted that the real estate offer in the Armenian market incomparably surpasses demand. As a result buyers define the price, instead of authors of offers. Therefore in practice it is impossible to define "market price" of real estate, as a whole, the prices fell to 10-15 %. Approximately the same situation in Nagorno-Karabakh.

The director of agency of real estate of "Best Realty" operating in this market Susanna Sadiyan told that in Stepanakert the real estate fell in price approximately for 20 %. For example, the two-room apartment in a multiroom building can be bought for $35 thousand, three-room – for $50 thousand. 

Yerevan: The market of Real estate Became more active

According to the report of the state committee of the inventory of real estate of the Republic of Armenia, in comparison with last month the market of real estate of Yerevan became more active.

In June, 2012 in Yerevan 4.260 thousand transactions with real estate were registered. If to compare with last month this indicator increased by 4,8 %, and in comparison with similar month of last year for 6,8 %. Unlike this lifting, the average prices for real estate in the capital in a year went down for 9 % (June of 2010-2011$US755/июнь - $US685). For a year of the price for real estate considerably decreased, and the number of transactions started to increase. At stable economic growth, this circumstance will probably lead to partial increase in the prices at real estate. And today, when the prices stably decrease, the branch practically lost interest as capital investments form, as brought this market into a condition of not speculative balance.