Yerevan is presently rife with protest. Dubbed “Electric Yerevan,” the protests are aptly named considering that they began as a result of Armenia’s government succumbing to demands by the country’s electricity distribution monopoly (Electric Network of Armenia (ENA)) to raise regulated tariffs by 16.7% as of 1 August 2015.

Economists disagree whether it was a good decision to reestablish the Georgian competition authority. When some years ago it was removed, the underlying logic was that a non-existing authority cannot be corrupt, and, more importantly, cannot harm the economy through misguided decisions. Assuming that corruption will not be a problem for the competition authority, neither now nor in the future, regulating markets is still a highly delicate issue which yields many possibilities to go wrong.

Investments in real estate compensates for risk premiums (compared to money deposits) and more than covers its costs (Mortgage interest rate). Average rental price for residential property continues to fall and reaches its historical minimum since March 2013.

The rental price index registered the sharpest annual decline in November 2014. Average rental and sale prices in Tbilisi continue to follow their long run trends. Average rental prices in Gldani-Nadzaladevi and Isani-Samgori have converged for two consecutive months.

In October, rental prices for residential properties in Tbilisi declined significantly in annual terms (-7.1%). Buyers tended to purchase cheaper, lower quality units in October relative to the previous month. Lower lending and deposit interest rates made real estate investments more attractive, driving rental prices for residential property downward.