In the previous editions of our newspaper we have referred to the inflation in the food, real estate and other markets. We have also adverted to the inflation in the construction material market, which is in chain with the price of real estate. Almost all the items used in construction have recently significantly grown in prices. We got convinced of this when we visited the construction stores located in Erebuni community and also when speaking to the constructors. For example, if in past, in September-October of 2007 one sack of plaster costs 1300 AMD now the price is 1600. One truck of sand, that is 4-4.5 cubic meters now already costs 30.000. But in past the price was 16000 AMD. One sack of cement in past used to cost 1700-1800 AMD and now it’s sold at 2000-2100 AMD. One year ago the price of a sack of cement used to cost 1200 AMD and one sack of plaster – 600-800 AMD. The price of one piece of Tuf brick now teeters around 130-160 AMD depending on the quality of the rock because the brick of Hoktemberyan and Artik have different qualities. Nevertheless, the constructors believe that the Tuf price was inflated by 20 AMD. If in September-October 2007 the cost of one ton of armature was 950 USD now it costs 1150 USD. The most commonly used nail now already costs 700 AMD; however it only cost 400-500 AMD a few months ago. One cubic meter of plank used to cost 200-250 USD and now it costs 400-500 USD. One piece of plywood used to cost 6000 AMD several months ago. Now it costs 9000 AMD. The cost of one measurement of Italian pipes used to cost 3500-4000 AMD. Now it costs 8000. According to specialists it is hard to buy such pipes at the mentioned price. The tile glue (25 kilos), which is used to glue tiles, now costs 6000 AMD; however in past it used to cost 4000. The gypsum, which is often used when repairing houses inflated by about 25-30%. If in past one price of gypsum (1.20×2.40 size) used to cost 3400-3600 AMD now it costs 4800 AMD. When speaking to us yesterday one of the salesmen of the construction stores told us that in near future the price of metal will be increased by 10-14%. Other salesmen told us that the price of metal has started to grow starting from the new year. The latter mentioned that the reason is the recent inflation in the European construction market. “The importer has to give us the material at a more expensive price. And the metal price especially was increased in Russia and Ukraine.” The salesman told us that this factor has already affected the number of customers. On of the constructors of elite buildings told us that this inflation will also affect the prices of real estate. If for example in 2006-2007 our compatriots living in Russia, USA and European states were able to purchase newly built apartments in Yerevan and invest money in Armenia in the current conditions of increase of real estate they will now prefer to buy houses and apartments in European states instead of Armenia.
