It’s More Joyful That the Growth in Real Estate Transactions in Armenia Has Been Recorded in the Regions and Not at the Expense of Yerevan: Nikol Pashinyan

In July 2019, real estate transactions in Armenia increased by 17.1% compared to July 2018, and by 10.3% compared to June 2019. The most encouraging aspect is that in July 2019, transactions involving production real estate rose by 11.7% compared to July 2018, and by 3.1% compared to June 2019.

What is even more encouraging is that the increase in transactions has been recorded in the regions rather than at the expense of the capital, Yerevan. This was noted by Armenian Prime Minister Nikol Pashinyan on his Facebook page.

Previously, when I made posts about the growth of real estate transactions, there were very active users who mentioned that people were selling their homes and leaving. Dear friends, in the situation you describe, real estate prices and transactions do not increase but rather decrease because there are many sellers and few buyers. Even with a strong desire, people cannot sell their apartments for years. A similar situation existed before the 2018 revolution.

Now, the opposite process is taking place: there are many buyers and few sellers. Moreover, what reasons might a person have to sell their home except for the most pessimistic options? For example, they might sell to buy a better home. They might replace their good home with a worse one to invest the profit, and so on. Not to mention the option of purchasing a property from scratch, which constitutes a significant portion of the transactions.

And the unprecedented growth of mortgage loans in our country is the most striking evidence of this. In June 2019, the volume of mortgage loans increased by 174% compared to June 2018, and in the first half of 2019, it increased by 120% compared to the first half of 2018. This is a record figure at least for the last decade – more than record-breaking.