In Slowing Economy Armenian Real Estate Market Booms
In a slowing Armenian economy, one sector is showing unexpected growth-real estate. While the country’s economic activity index measured 4.4 percent during the first three quarters of 2021, in the real estate sector the figure was over 16%. Between January and September this year, the country saw 143,000 real estate transactions -- more than 16 percent over the same period in 2020. Of all the deals, 37% represented property sales. The active market is likely connected to a recent government decision to shut down a program that had allowed homebuyers to apply their income taxes to their mortgages. In August, the government announced that it intended to phase out the program, citing the fact that a disproportionate number of the beneficiaries were concentrated in Yerevan. It will stop supporting mortgages in Yerevan in July 2022 and across the country by 2025. The bill has already passed its first reading in parliament, the second reading has yet to be scheduled.
Tags : INTERNATIONAL homebuyers Government mortgages Deals Transactions Armenian Economy Yerevan