REAL ESTATE MARKET OF REPUBLIC OF ARMENIA IN 2007 - Annual analysis

Based on the rights of state registration quantity deals implemented in the year of 2007 in real estate sphere of the Republic, as well as real estate market, contract price, rent volume, their dynamic change and analysis we can come to a conclusion, that the real estate market of our country has a tendency of development and price increase. Surveys on real estate market show, that starting from the year of 2000 the following factors show continuous essential influence on the activation of civil circulation process of real estate in the Republic:

• Stabilization of social-economical, political situation;
• Implementation of construction and investment projects;
• Improvement of legislative field;
• Contraction of service timeline for the implementation of deals, the decrease of price paid for them, simplification of registration documents;
• Acceptance of normative legal acts that result from RA land legislature;

• Legalization of squat buildings;
• Implementation of licensing process of real estate market members, i.e. realtors, real estate evaluators, people in charge of topography mapping and land constructors;
• Works on real estate first state registrations.

In the scope of last years, the quantitative change/dynamics of state registration rights coming from real estate deals has a tendency to grow. This way, in 2000 there were 30228, in 2001 - 44792, in 2002 - 60874, in 2003 - 71797, in 2004 - 98345, in 2005 - 122545, in 2006 - 124568, in 2007 - 155040 state registrations rights coming from the real estate deals. Moreover, in the framework of first state registration process, in the year of 2007 21561 state registrations were carried out as well.
In 2007, as compared to 2006, quantitative increase of state registrations made 24.5%. From the annual perspective of year 2007, the quantitative change/dynamics of state registrations rights resulting from real estate deals also shows growing tendency. Monthly average balanced growth of total number of deals makes 2.0%.

Compared to 2006-2007 the quantitative progress and tendency of real estate deals has the following pictures:

Types of real estate deals for the year of 2007 have the following distribution:

86.2 % of 60608 amortization real estate deals carried out in 2007 were purchase and sale deals, 13.1% were donations and 0.7% exchanges. 33.7% of real estate amortization deals were registered in Yerevan, 34.1% for apartments in residential buildings.
In 2007, as compared to 2006, number of real estate amortization deals increased for 18.2 %. In 2007, out of 16546 real estate purchase and sale deals registered in Yerevan 62.4% were carried out for apartments in residential buildings. Comparing to 2006, number of purchase and sale deals of residential building apartments in Yerevan decreased by 1.1%.
As a result of purchase and sale (contract) prices for the sold residential building apartments in Yerevan during the year of 2007, as well as the price analysis suggested by the realty agencies the following market average prices and their change interval were formulated for 1 square meter of apartments:

Investigation on price index change allows conclude that in 2007 in Yerevan, as compared to 2006 average market price for 1 square meter of residential building apartment increased for 30.7%.
During the year of 2007 the quantitative changes of state registrations rights for residential building apartment amortization and purchase and sale deals in Yerevan shows growing tendency.
In 2007, for the exception of Yerevan, 6148 apartments in residential buildings were sold in marzes, the number of which increased for 9.1% as compared to 2006.
For 2007, in the cities of Republic, except for Yerevan, the prices for purchase and sale (contract) of residential building apartments and according to the analysis of prices offered by realty agencies, the following average market prices and their change interval were defined for 1 square meter of apartment:

In 2007, as compared to 2006, in the cities of Republic, except for Yerevan, average price increase for 1 square meter of residential building apartment is 43. 9%.
Quantitative changes of state registration rights that come from amortization and purchase-sale deals of apartments in residential buildings shows growing tendency in the marzes of Republic for the year of 2007.
During 2007, 6759 purchase-sale deals for private houses were registered throughout Republic, 1596 of which in Yerevan, 5163 in all the marzes altogether. Compared with 2006, number of deals of purchase-sale of private houses has increased for 23.5%, including 26.3% increase in Yerevan, the rest of marzes altogether – 22.6%.

Purchase-sale (contract) prices of average square private houses (250 sq.m) and homestead land (400 sq.m) in the communities of Yerevan, as well as the analysis of prices suggested by realty agencies resulted in the following market prices for 2007 which is calculated by 1 sq.m. of the building, including the unit price of homestead land and their change interval.

Survey on price index change allows us to conclude, that average market price for 1 square meter of private houses (including the unit price of homestead land) in Yerevan during the year of 2007 increased annually for 30.1%.
During the year of 2007 quantitative changes on state registration rights coming from amortization and purchase-sale deals of private houses in Yerevan show growing tendency.
Purchase-sale (contract) prices of private houses with average square building (200.0 square meters) and 1000sq. meters of homestead land in the cities of Republic, excluding Yerevan, as well as the analysis of prices suggested by realty agencies define the following market prices for 2007 – calculated by 1 square meter of building, including the unit price of homestead land and their change interval.

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