A Decrease in Real Estate Prices is Expected

The real estate market in Armenia has come to a standstill. This was noted by Artem Pribilski, head of the 'Real Estate Exchange' company, in an interview with Sputnik Armenia.

According to the latest publication by the Statistical Committee of the Republic of Armenia, the total number of transactions involving real estate in Armenia decreased by 2000 in September compared to the previous month.

The head of the company reports that particularly in Yerevan, numerous buildings have been constructed recently, with prices having no relation to their market value. For instance, in September of this year, the cost per square meter in the Central administrative district of Yerevan has increased by 110,000 drams compared to September of the previous year, which represents an increase of almost 15%.

'The significant volume of new buildings has become a locomotive for price growth, and now they may serve as a barrier that will lead to a decrease in prices,' Pribilski elaborated.

According to the expert, the economy of Armenia cannot change dramatically in one or two years, nor can family budgets double or triple. For this reason, the irrational prices of real estate will eventually start to 'come to their senses.' 'What does it mean that prices have stopped? It means there are currently no high prices in the market, transactions have decreased, and in a few months, specifically by mid-2024, real estate prices will begin to decrease,' Pribilski emphasized.