Artyom Pribilski: After the end of the Russian-Ukrainian war, rental prices will decrease

For many years, a landlord must pay income tax of 10% of the transaction amount. Recently, the government has tightened the law for landlords and tenants who do not pay taxes. The government proposes to impose a fine of 5% of the transaction amount. In an interview with Alpha News, Director of Real Estate Market Artyom Pribilski has elaborated on the regulations and prices in the real estate market. He expects that prices will fall after the end of Russian-Ukrainian war.

Artyom Pribilski recalls that the regulation of 10% has been in place for two decades, however only few pay this amount. Not everyone wants to legitimate their relations with the tenant under the contract. According to Director of Real Estate, the main reason is the 10% income tax provided for the transaction which is high enough. He is sure that instead of tightening the law, the existing laws should have been revised first.

“This is also the opinion of our tenants and landlords. It is too much,” Pribilski said.

He recalls that when the current regulation has been adopted, transactions related to the cadastre have not been digitalized, and the service fee has been much higher, but now everything is electronic, and, therefore, prices should be different. Despite all this, citizens today are forced to go to the Cadastre Committee and stay in queues.

“Government, if you want to legally take money from us, well, okay, we understand it. I want to make a suggestion so that people do not go to the Cadastre Committee, forms approved by the government could be revised, simplified and posted on the Internet,” Director of Real Estate explains, adding that the payment can also be made electronically.

According to Artyom Pribilski, this will facilitate the life and relations of tenants and landlords. Commenting on the “boom” of rents in the real estate market because of immigrants, the director notes:

“After the end of the Russian-Ukrainian war, rental prices will decrease.”

He adds that the real estate market is not in high demand among Armenians, and current market prices do not correspond to salaries of our fellow citizens.