1. ARTASHES ARAKELYAN PhD, Director, aara@arminco.com INTERNATIONAL CONFERENCE ON “LAND REFORM POLICIES IN TRANSITION ECONOMIES” October 28-29, 2005 Ulaanbaatar, Mongolia YEREVAN, ARMENIA

2. URBAN LAND REFORMS IN ARMENIA Case of Yerevan

3. Outcomes of Land Reform the very small size of these family farms which on average, was not more than 1.3- 1.4 hectares (and less than 0.5 ha per rural capita) primarily arable land (with in addition most of the orchards and vineyards) was privatized an important part of the hayfields and all pasture land remained in the hands of the state.

4. NUMBER AND ACREAGE OF PEASANT FARMS (1998-2003) 199219931996199820002002 2003 Nr of Peasant Farms Units (x 1,000)165.2238.3316.4333.8332. 6 334.7337.9 Land Area of Peasant Farms (x 1,000 Ha)214.9310.4429.2447.0460. 1 453.1461.3 Average Size Peasant Farms (Ha)1.30 1.361.341.381.351.37 Agric.l an d Arabl e L a n d Pere n n i a l G r a s s Fallow LandHay L a n d Pastu r e Land Balance (1997) (x 1,000 Ha)1,391.4 494.3 63.80.4138.9694.0

5. Cadastral Zones ZonesCoefficientPrice per sq/m 11.000060000.00 20.650039000.00 30.422525350.00 40.274616476.00 50.178510710.00 60.11606960.00 70.07544524.00 80.04902940.00 90.03191914.00 Basic price for per sq/m is 60,000 AMD=120USD

6. Old definition of zones ZonesPrice per sq/m /USD/ 15.7 24.4 33.3 42 50.76

7. Access to Land in Armenia Land in Armenia can be acquired through following means: Direct sale or lease of private land or the transfer of land or property rights through inheritance or donation Land Auction by the state or local government Privatization of state-owned property

8. Access to Land in Yerevan The auction process begins with the investor undertaking the following steps: The preparation of an application to the Mayor to ask for a land parcel The request, if deemed appropriate, is sent to the Chief Architect’s Office for review If a parcel of land is determined appropriate for the land use requested then by the Land auction commission on holding a land auction. Particularly by the Chief Architect’s Office is prepared a site map detailing the land parcel with restrictions Then the application file is forwarded onto the Land auction commission of the Municipality who is the governing body responsible for carrying out land auctions. The Land Auction commission of the Municipality then places an ad in the newspaper announcing the sale of the property. This is done one month in advance of the land auction.

9. Auction sale and leasing Auction/Competition Nr of Lots Land area InitialAuction/com petitive price Auction price/Compit. Price/ anuel fee 587/27 281,106/ 126,140.5 1,122,960,000 / 24,251,100.0 1,205,167,985/ 25,897,560.0 / 1,763,150.0

10. Direct Sale of State-Owned Land Submit an application to the Mayor’s Office requesting the direct sale of land The request is forwarded onto the Land Auction Commission

11. Direct Sale TOTAL Nr of Mayor Decisi ons Nr of contr acts Land areaTotal price Total6797142,436,3672,780,803,764

12. Leasing of State–Owned Lands Submit an application to the Mayor’s Office requesting a lease for a specific parcel of land The request is forwarded onto the Land Competitive Commission who reviews the letter If the request is approved, the investor must enter into a legal contract with the Land Competitive Commission

13. land management and administration Efficient: promotes growth based on free market principles Sustainability: balanced, quality-oriented, and managed for the long term benefit of society Equitable: provides equal access to opportunity and information Procedures need to be: Transparent and accountable: founded on clear rights and responsibilities under the application of legal rules and principles Participatory: formulated through a consultative, participatory process which permits input from the persons or government bodies most directly affected

14. International best practice to implement sustainable land policies and to effectively utilize property and promote investment in the country Laws and institutions/government organizations that protect property and tenure rights Land use and development planning, processes and procedural enforcement systems Land and natural resource protection and management programs Property valuation and taxation offices

15. The strategic goals develop a competitive environment in the real property market, encourage a system of private land sales, and create the necessary conditions for the best and maximum efficient usage of real property.

16. The expected results Transparent and simplified registration rights to real property The establishment of a comprehensive database of real property and identifying information Introduction of market mechanisms for real property valuation Regulations for the consolidation and planning of lands Steam-lined processes for acquiring permissions regarding new development projects Creation of favorable conditions for private sector land transactions Establishment of a real estate market and real estate professionals Introduction of mechanisms to decentralize all land and real property in Armenia Clear definitions of state functions for land management and as a regulative body for the real property market Undertaking real property monitoring