Armenia Real Estate - Land, Buildings, Houses, Apartments, Property, Rights

Armenia Real Estate

Property in Armenia

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1. Armenia Real Estate Market in 2010

According to official statistics: in the first 6 months of 2010 number of Armenia Real Estate operations increased by 24% in comparison to the same period of 2009. There were 81,000 deals in January-June 2010.

Armenia Real Estate Operations by Regions

N	Regions (Marzes) of Armenia	Armenia Real Estate Operations %
1	Aragatsotn	5.4
2	Ararat	7.8
3	Armavir	5.8
4	Gegharkunik	7.5
5	Lori	11.1
6	Kotayk	13.2
7	Shirak	6.1
8	Syunik	4.5
9	Vayots Dzor	2.4
10	Tavush	3.7
11	Yerevan	32.4
	Total	100

In the first 6 months of 2010 prices of apartments in Yerevan increased by 6.2 % in comparison to the last six months of 2009.

During the first 6 months of 2010 1826 apartments were sold in the regions of Armenia, which is 27.5% increase compared to the same period of 2009.

In the first 6 months of 2010 number of sales/purchase of private houses increased by 28.3 % in comparison to the same period of 2009. The same statistics for Yerevan is 71.7%.

In the first 6 months of 2010 number of sales/purchase of lands in Armenia increased by 18% (agricultural lands: increase by 24.2%, residential lands increase: 11.6%, industrial lands increase: 12.9%)

2. Armenian Land - Historic Overview

Borders of Armenian Lands are clearly recognized and described in science and historic maps. Moreover, there is a special term in science called Armenian Highland, which gives the idea that Armenians are the native population in the territories between the Black See, Caspian Lake and Mediterranean Sea. This territory was 10 times bigger than present day Armenia. This is the Motherland of Armenians who lived there more than 3000 years. Although most of this territory is currently occupied by Turkey, millions of cultural, architectural, historic evidences prove that this is originally Armenian Land.

3. Armenia Real Estate Today - Property in Armenia

Legal protection of Property in Armenia

According to the Armenian Constitution:

- The right to property in Armenia is recognized and protected by the Republic of Armenia.

- Everyone shall have the right to freely own, use, dispose of and bequeath the property in Armenia belonging to him/her. Foreign citizens and non-Armenian citizens shall not enjoy the right to land ownership except for cases prescribed by the law. Ethnic Armenians who have dual citizenship (Armenian +) or foreign citizens having Special Residency Status in Armenia can own and use land in Armenia.

- No one can be deprived of property in Armenia except for cases prescribed by law in line with the judicial procedure.

- The right to property in Armenia shall not be exercised to cause damage to the environment or infringe on the rights and lawful interests of other persons, the society and the state.

- The private property in Armenia may be alienated for the needs of the society and the state only in exclusive cases of prevailing public interests, in the manner prescribed by the law and with prior equivalent compensation.

3.1. Armenia Real Estate - Land Recourses

Land Recourses of the Republic of Armenia are the basis of the Armenia Real Estate. Territory of the Republic of Armenia is 29, 743 km2. Distribution of Armenia's Land Recourses by regions and by land types is presented in the table below:

Republic of Armenia Real Estate - Land Resources

Republic of Armenia	Yerevan	Aragatsotn	Ararat	Armavir	Gegharkunik	Lori	Kotayk	Shirak	Syunik	Vayots Dzor	Tavush
29,743	227	2,753	2,096	1,242	5,348	3,789	2,089	2,681	4,506	2,308	2,704
	%
Agricultural		79.1	74.8	79.2	65.6	67.2	77.1	86.2	72.3	91.5	45.9
Residential		5.3	5.8	12.8	3.2	3.5	5.8	6.1	1.8	2.0	2.5
Industrial		0.5	0.8	2.3	0.4	0.4	0.7	1.2	1.1	0.1	0.2
Infrustructure		0.2	0.4	0.9	0.1	0.3	0.4	0.6	0.1	0.1	0.1
Special Protected		0.7	14.4	1.0	24.6	0.2	0.6	0.7	3.8	0.3	0.1
Special Purpose		8.1	0.5	1.1	0.2	0.2	0.1	1.1	0.0	0.0	0.0
Forest		4.3	0.1	0.2	4.2	26.6	11.9	1.4	18.8	5.7	49.6
Water		0.7	2.7	2.3	0.1	0.4	0.3	2.0	0.5	0.2	0.1
Reserve		1.1	0.5	0.2	1.6	1.2	3.1	0.7	1.6	0.1	1.5
Total %	100	100	100	100	100	100	100	100	100	100	100

3.2. Residential Real Estate in Armenia

Residential Real Estate in Armenia is mainly concentrated in Yerevan, Capital of Armenia, in Gyumri, Vanadzor, Kapan, Abovyan, Hrazdan, Ashtarak, Sisian, Goris, Gavar, Sevan cities, other towns and villages. In the Armenian cities most of the Residential Real Estate are apartment buildings, major part constructed in Soviet time, when Armenia was part of the Soviet Union. There are two types of Soviet Era Buildings in Armenia: so called "Stalin period" buildings ("Stalinkas" - strong, stone made and nice), and mass construction period residential buildings, which are less attractive, sometime even ugly. However, after the independence lot of residential real estate construction started in Yerevan and around. Most of these new buildings are modern, very nice and comfortable.

In addition to apartment buildings there are many private houses both in the Armenian cities and villages. Armenia Real Estate in villages is mainly consisting of private houses - self designed and made small buildings. Most of the houses in Armenia are stone and concrete made.

3.3. Industrial Real Estate in Armenia

Formation of Industrial Real Estate in Armenia started in 19 century when mining, non-ferrous metallurgy and winemaking become attractive for the foreign investors, who started constriction of plants and factories in Armenia. However, till the beginning of 20-th century most of the Armenian production, about 69% has been produced by small household based Armenian Enterprises.

Major industrial construction in Armenia started during the Soviet Time. ANI PEMZA, Leninakan Textile Factory, Yerevan Oil-Soap Enterprise, Dzoraget and Leninakan Hydro Power Stations were constructed in 1921-1928. During 1928-1941 46 additional big enterprises were build in Armenia. During the Second World War 18 enterprises were developed in Yerevan and regions of Armenia, such as: ARMELECTRO, ELECTRIC ENGINE, MACHINE TOOL plants and others. After the Second World War and till 1965 more than 150 plants were constructed in Soviet Armenia, among which are: several hydro power stations in Jermuk, Sevan, Vardenis, Atarbekyan, Hoktemberyan, as well as POLIVINILATSETAT plant in Yerevan and others. In 1976-1985 many other industrial giant plants were constructed, including Armenia's Nuclear Power Station.

First years of Independence were hard times for the Industrial Real Estate of Armenia. There was a blockade from Azerbayjan and Turkey, and Armenia was involved in the Conflict in Karabakh for defending Armenian people constitutional rights. Many Industrial Assets including Real Estate assets were destroyed in Armenia at that time because of several reasons. However, after the ceasefire set in 1994 Armenian Economy started to recover losses and many new enterprises and plants constructed in various sectors of the Armenian Economy.

Currently Armenia is quite rich of Industrial Real Estate including modern plants, farms and infrastructure.

3.4. Public Buildings in Armenia

Public Buildings are part of Armenia Real Estate. There are buildings constructed before the Soviet time, such as Parliament Building of the First Armenian Republic, several buildings in central Yerevan, on Abovyan Street, very nice buildings in Gyumri, Ashtarak and other cities of Armenia. Most of the Armenian Public buildings were constructed during the Soviet Time. The most beautiful Public Buildings in Yerevan are the Republic Square buildings, Armenian Parliament, Office of the President, Opera House, and Moscow Cinema Theatre.

3.5. Commercial and Non-Governmental Buildings in Armenia

Commercial and Non-Governmental Real Estate in Armenia started it's development after the Armenia's Independence. Nowadays there are many newly constructed Hotels, Private Business and Non-Government buildings in Armenia. Major part of such buildings is concentrated in Yerevan, but more and more new modern real estate is coming to replace the old ones.

3.6. Churches and Monuments

Armenia is rich of Churches and historical monuments. This unique heritage can not be measured and priced. These are the real National Treasures that goes from generation to generation. There are thousands of churches and unique historical monuments. Churches belong to Armenian People and Armenian Apostolic Church.

According to the Armenian Constitution the historical and cultural monuments and other cultural values are under the care and protection of the Armenian Government.

4. Armenian Real Estate Legislation

Armenia Real Estate is regulated by the Constitution of the Republic of Armenia, lows, Government Resolutions and other legal documents. The most important low is the Armenian Land Codex.

5. Armenia Real Estate a€“ Registration of Rights and Government Authority

Rights to Armenia Real Estate are subject for Registration by the Government of Armenia. The authorized governmental body responsible for registration of rights on Armenia Real Estate is the State Cadastre. Individuals and organizations get special passport from the State Cadastre on each piece of property they own. State Cadastre also performs other activities related to Armenia Real Estate.