How high the price of realty will go up

Anahit Danielyan
06-05-2008 12:57:29 – KarabakhOpen

The prices of real estate in Karabakh are rising so fast that as soon
as you find an apartment and agree on the price, in a couple of weeks
the agreement needs to be changed, said an inhabitant of Stepanakert in
an interview with us who has been unable to buy a two-room apartment
for 40 thousand dollars in Stepanakert. He says a month ago one could
buy a two-room apartment on this sum, now it costs a couple of
thousands of dollars more.

A two-room apartment costs 45 thousand dollars in Stepanakert, and the
price of three-room apartments is 70-75 thousand dollars.

The prices of real estate grew over the past few years but such a rate
of growth is reported for the first time. It is linked to the launch of
the mortgage policy rather than the dropping rate of the dollar. People
who sell their apartments know that now a lot of citizens need
apartments who hurry to borrow a mortgage loan. Since few new apartment
buildings are built, the buyers can buy only old apartments. The people
in charge of this business say the mortgage policy is aimed to boost
construction of housing. In addition, the prices of both new and old
apartments are actually the same. Many people think it is positive,
however, it should be noted that it is not because the apartments in
new buildings are cheap but because the prices of apartments in old
buildings are exaggerated.

The prices of land have also gone up. It is also determined by the
mortgage policy. Besides, the City Hall has suspended allotment of land
for construction of houses till the end of this year.

In Karabakh they already joke that they can sell their apartment in
Stepanakert, buy a similar apartment in Yerevan and save a couple of
thousands of dollars. Instead, if you sell your apartment in Yerevan,
you cannot buy a similar apartment in Stepanakert.
From: Baghdasarian