Armenian Home Sales Surge After Lengthy Decline
David Harutiunian
September 08, 2009
YEREVAN — The number of real estate transactions in Armenia jumped by
36 percent in June after months of steep decline during the
international economic crisis, RFE/RL’s Armenian Service reports.
David Harutiunian, a top aide to Prime Minister Tigran Sarkisian who
oversees the government’s anticrisis measures, told RFE/RL that the
increase in transactions reported by the State Cadastre Committee
bodes well for Armenia’s emergence from its worst economic recession
since the early 1990s.
Harutiunian said the "increased activity in the market" is a
"significant indicator which shows that the [real estate] market is
slowly recovering and that we have passed the stage of [price]
fluctuations."
The rise in apartment and house sales was confirmed by private
developers.
Armen Mkoyan, director general of the Elite Group construction
company, said apartments are selling now. He added that the situation
is "stabilizing" and sales are increasing. He told RFE/RL that "we
have seen positive dynamics in the last two months."
Harutiunian attributed increased housing sales to the June
establishment of a state-owned mortgage fund that is supposed to make
housing loans cheaper and more accessible.
The National Mortgage Company has an authorized capital of 22 billion
drams ($58.3 million) and is expected to receive 20 million euros ($28
million) in additional funding from the German government.
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