Arshak Khachatrian,
Real Property
Market
Basic goals and targets of development;
regulation of real property market
Armenia started the 21st century actively increasing the
temps of land relations’ reforms. Public-economic transformations, carried out
in the recent 10 years, as well as the establishment of the unified system of registration of real
property rights carried out by the State Committee of Real Property Cadastre of
the Republic of Armenia gave a ground for the introduction of the new land Legislation
and brought significant changes in the structure of the real property
management, particularly in the land fund of Armenia. Comprehensive mapping and
inventory of lands of all types of ownership, introduction of all land parcels
on the state cadastral inventory and
state cadastral valuation of all lands are carried out. Based on the land
cadastre and land construction, the delimitation of land according to the type
of ownership is implemented. After the adoption of the Land Code in 2001, a
normative base for the development of land and real property market is actively
formed. The Government of the Republic of Armenia gave it’s approval to the
real property market development program designed for the 2002-2009 years
period. The strategic goal of the program is to develop a competitive
environment in the real property market and in the system of the civic turnover
with the real property and rights towards them , as well as creation of
necessary conditions for the best and maximum efficient usage of real property.
The mentioned above goal expects the following tasks to be met:
- Introduction of transparent systems of
registration on rights and simplification of registration of rights to
real property;
- Establishment of data base on real
property and regulation of authentic informational supply on the real
property market;
- Introduction of market mechanisms for the
real property valuation;
- Implementation of stimulating arrangements
for the development of hypothec crediting of real property;
- Regulation of conducting of stimulating
arrangements towards consolidation and planning of lands; simplification
of order of getting corresponding permissions for establishing new real
property units on the lands of urban development importance;
- Establishment of favorable conditions for
the productive participation of specialists of real property market;
- Introduction of effective mechanisms
towards the decentralization of land and other real property, as well as
their transfer for another kind of usage;
- Distinct and clear delimitation
(definition) of state functions both as the owner of real property and as a regulative
body of real property market;
- Carrying out of real property monitoring;
- Classification and inventory of the whole
real property in the Republic of Armenia for the realization of efficient
state economic policy.
Connected with the mentioned above tasks, new models and tested methods
for cadastral valuation of lands, as well as buildings and constructions
located on them are submitted to the consideration of the Government. According to the program for the 2003-2004 years new methods for the cadastral valuation are developed, as well as
another below mentioned arrangements.
Licensing of realtors and evaluative activities
In 31 of December, 2002, approximately 62 juridical and 63 physical
bodies are licensed and continue their activities. Almost the half of them are
occupied with the evaluative activity.
In the recent 3 years 5 associations were formed in Yerevan, which
brought together about 35-40 organizations occupied with realtor and evaluative
activities. The unification gave an opportunity to unify efforts, professional
skills and means for the solution of common problems, as well as to acquire
hardware and another up-to-date technology, open own web sites, thus raising
the level and speed of information flow for the real property market
participants.
The Committee is actively cooperating with the licensed realtors and
evaluators in the sphere of the informational exchange provision; in the establishment
of unified methods to be used for the
analyses of the real property market and for the introduction of international standards of real property
evaluation. The Committee also develops a law on evaluative activity and code
of ethic behavior of realtors.
Real property market analyses
The State Cadastre Committee of the Republic of Armenia carries out
monitoring and analyses of real property market during 5 years, which implies study of interrelated systems of
market mechanisms ensuring the establishment, transfer, exploitation and
financing of real property objects. The basic goal of the real property market
monitoring is to provide authentic and analyzed information about the state of
real property market and price situation in it for the wide circles of
population, that’ to say, the basic participants of the real property market.
The conducting of monthly monitoring of real property market allows to
identify the price formation factors, influencing the real property market, as
well as the dynamics and tendencies of quarterly, semi annual and annual market
average prices.
In 2002 60874 transactions are
registered in the real property market, which is higher in 35.9 % comparing
with the year of 2001. The picture of quantitative growth of transactions by
various types of real property is given in the Table 1.
Table 1.
Transactions by various types of real property
In the Table 2 the quantity of registered transactions by various types of
real property in rural areas is shown.
Table 2.
Registered transactions on real property in rural area
The studies made for the registered
transactions with the real property done for the year of 2002 show, that
dynamics of the quantitative changes has a tendency to grow. Quantitative
indexes of transactions with the real property according to the average monthly
temp of growth makes 5.0 %. But it
should be mentioned, that in comparison with the year 2001, the dynamics of the
quantitative changes of transactions with lands and objects of industrial
importance have more limited tendency of growth, which is connected with the
mass state registration of electricity networks carried out in the Republic in
2001, September. It should be mentioned that from the 11 marzes (regions) of
the Republic the highest rate of the registered transactions is observed in
Shirak.
In table 3
is shown the distribution of quantitative changes of registered alienations by
various types of real property in Yerevan in 2002 in comparison with the
year of 2001.
Table3.
Registered alienations in Yerevan
|
|
Types of real property |
Quantity of registered alienations |
||
|
2001 |
Changes in rates |
2002 |
||
|
1 |
8825 |
21.0% |
10677 |
|
|
2 |
Villas (private
houses ) |
936 |
23.2% |
1153 |
|
3 |
Objects of
industrial importance |
73 |
20.5% |
88 |
|
4 |
Objects of public importance |
841 |
69.2% |
1423 |
|
5 |
Garages |
99 |
43.4% |
142 |
|
6 |
Summer houses |
53 |
83.0% |
97 |
|
7 |
Lands |
88 |
6.8 times |
601 |
|
|
IN TOTAL |
10915 |
29.9% |
14181 |
In Yerevan the real property market is more
active in community Davidashen, where the quantity of lands’ alienations make
44.8% of the total quantity of lands’ alienations in Yerevan. In total 591 sale
transactions of lands are registered in the capital, the 222 of which are done
through auction. The total square of
sold lands made 67.3 ha (the 17.58 ha is sold through auction).
In the
Republic, quantitative changes of registered alienations has a significant
growth during the year 2002 in comparison with the 2001. (Table 4).
Table 4.
Registered alienations in Armenia
|
|
Types of real property |
Quantity of registered alienations |
||
|
2001 |
Changes in rates |
2002 |
||
|
Lands |
2194 |
2.0times |
4424 |
|
|
1à |
Including the agricultural lands |
1287 |
50.2% |
1933 |
During the 2002, the portion of lands’ alienations made the 16.3% of the
total alienations of real property. In comparison with the same period of the
last year, the portion of lands’ alienations increased for 4.4%. In total,
1844.13 ha were alienated, the 67.79 ha were alienated in Yerevan and 1776.34
ha in marzes, the 1571.91 ha of which were agricultural lands. Through the alienation of lands, 1804.21 ha
were transferred to new owners by sale, including 1538.46 ha agricultural land
parcels; 27.10 ha is alienated through donation, including the 23.26 ha of agricultural land parcels; as well as
5.74 ha through the exchange from which 4.28 ha are agricultural land parcels.
Graph 2
Table 5. Sales of lands’ by marzes