ARMENIAN MORTGAGE MARKET HAS LARGE ROOM FOR DEVELOPMENT

ARKA
Feb 12, 2010

YEREVAN, February 12. /ARKA/. Armenian mortgage market has large
room for development, if not in 2010, then in 2011 and 2012, Manuk
Yerghnyan, the head of E-V Consulting Research Center, said Thursday
in Novosti International Press Center.

"Construction has such a big share in Armenia’s GDP not because it is
highly developed, but thanks to underdevelopment of other sectors,"
he said.

Yerghnyan said that Armenia’s per-capita construction lower than that
of Russia and the United States two or three times.

"This shows that there is a large room for building up housing.

Construction in Armenia could be propelled by demand spurring by
mortgage lending," he said.

No new houses were built in 2009.

Yerghnyan expects a rally in 2011 and 2012.

According to Armenian State Real Estate Cadastre, the number of realty
deals in Armenia rose 5.3% in Jan-Nov 2009, compared with the same
period a year before, and reached 137,100 by late November.

Prices for flats in Yerevan averaged AMD 265,600 per one square meter
in late November after falling 10.5% over the period between January
and November 2009, compared with the same period a year earlier.

Private housed in Yerevan became 4.5% cheaper in Jan-Nov 2009, compared
with the same period of the previous year, and averaged AMD 294,600
per square meter.

Prices for apartments in Armenia’s provinces rose 4.8% and prices for
private houses 7.9% in Jan-Nov 2009, compared with the same period
of 2008.