Ameriabank: Armenia’s real estate market may start rallying thanks to downed loan interest rates
29.11.2017,
13:44
Decrease in lending interest rates at Armenia’s financial market spurs the real estate market, Arman Barseghyan, retail operations director at Ameriabank, said Wednesday at an online news conference.
YEREVAN, November 29. /ARKA/. Decrease in lending interest rates at Armenia’s financial market spurs the real estate market, Arman Barseghyan, retail operations director at Ameriabank, said Wednesday at an online news conference.
According to the central bank’s reports, interest rates on up-to-one-year loans in Armenian drams have been downed by 2.3 percentage points since the beginning of the year to 13.17% in October and on deposits by 1.33 percentage points to 8.77%.
“At the first glance, it may seem that there is no any connection between interest rates and the real estate market, but there is a direct connection,” Barseghyan said. “In particular, decrease in interest rates spurs the immovable property market increasing liquidity. Some increase in real estate prices in the future is not ruled out.”
Remarkable is, he said, that the country’s residents have already started considering immovable property not only as housing and relating expenses, but also as a source of income.
“Demand for immovable property is growing as interest rates are going down, and real estate becomes more profitable in terms of investment and receiving income,” Barseghyan said.
In his words, the real estate market has already started rallying and increase in immovable property deals is already visible.
According to the National Statistical Service, 9,793 immovable property units have been sold/bought over the first nine months of 2017 against 8,607 units in the same period a year before (13.7% year-on-year growth). -0----
According to the central bank’s reports, interest rates on up-to-one-year loans in Armenian drams have been downed by 2.3 percentage points since the beginning of the year to 13.17% in October and on deposits by 1.33 percentage points to 8.77%.
“At the first glance, it may seem that there is no any connection between interest rates and the real estate market, but there is a direct connection,” Barseghyan said. “In particular, decrease in interest rates spurs the immovable property market increasing liquidity. Some increase in real estate prices in the future is not ruled out.”
Remarkable is, he said, that the country’s residents have already started considering immovable property not only as housing and relating expenses, but also as a source of income.
“Demand for immovable property is growing as interest rates are going down, and real estate becomes more profitable in terms of investment and receiving income,” Barseghyan said.
In his words, the real estate market has already started rallying and increase in immovable property deals is already visible.
According to the National Statistical Service, 9,793 immovable property units have been sold/bought over the first nine months of 2017 against 8,607 units in the same period a year before (13.7% year-on-year growth). -0----
