The reality of real estate

ANI AMIRKHANIAN

In the past couple of years, I have been hearing talk about real

estate opportunities in Armenia.

More Armenians are expressing interest in buying property in

Armenia, be it residential or commercial.

They are Diaspora Armenians from all parts of the world, including

Glendale, who are making these kinds of investments. Some have never

been to Armenia.

Granted, any kind of investment made there is inexpensive in

comparison to Glendale.

I did a little research on real estate in Armenia and found out

that one can purchase a three bedroom apartment in central Yerevan

for $185,000 U.S. dollars.

There is even a website called Yerevanapartments.comdesigned for

Diaspora Armenians who wish to buy an apartment in Armenia. The

website states in its mission statement: “Let Yerevan Apartments take

care of everything -- locating, purchasing and remodeling your home

in a free and independent Armenia.”

Sources indicate in 2005 there was a 43 percent increase in the

construction sector.

As development increases in Armenia, so does the need to be a part

of it.

In 1999, relatives of mine from my father’s side of the family

decided to make a permanent move to Armenia. At that time, they were

living in Boston, Mass., and had lived in the U.S. for 5 years. Their

children, who were about 12 and 9 at the time, respectively, and both

born in Iran, responded to the move with grace.

A friend of the family made the decision to buy several commercial

properties in Yerevan, but decided to stay in Glendale, where his

home and family were and still are.

Recently, my uncle started talking about taking early retirement

and moving to Armenia where he would rent or buy an apartment.

Several factors influence the decisions most people make before

they make a move.

I have discovered that most people learn about the social climate,

employment, education, cultural standards, etc. -- all factors that

impact the quality of life in Armenia and anywhere else for that

matter -- mostly through word-of-mouth.

It’s easy for people to envision and even fantasize what it would

be like to live somewhere based on how others describe it. Generally,

if the impression of Armenia is optimistic and it’s described as

being progressive, then people take immediate steps to connect with

their “homeland.”

These people are usually those who have never seen their

“homeland.” Most envision the country through Western eyes and set

their expectations high.

The impression that most Diaspora Armenians have of Armenia, in

particular Yerevan, is that it is a world-class city experiencing a

surge in the economy that has contributed to the growth in commercial

development.

Buying property does contribute to the economic prosperity of the

country. But despite this contribution, people tend to forget the

high unemployment rate in Armenia or the lack of adequate health

care.

According to a labor force survey conducted by the National

Statistical Service of Armenia, unemployment was at 30 percent in

2003.

The quality of life in Armenia, based on statistics, is not up to

par by Western standards by any means. Poverty, according to a

household income survey conducted from 5,000 households, was at a

staggering 43 percent in 2003.

So when Armenians talk about investing in property in Armenia,

little do they think about the quality of life in Armenia.

It’s easy for Diaspora Armenians to create a comfortable

well-to-do lifestyle in their “homeland,” but for a native Armenian,

the quality of life in Armenia remains insufficient.

Unemployment, the lack of resources and public services prevent

many residents of Armenia from taking advantage of development and

real estate.

So how can Diaspora Armenians contribute to a better quality of

life in Armenia? Is buying real estate the only option?