Land mortgage has noticeably intensified in Armenia

ArmInfo.In Armenia, mortgage collateral transactions with land plots intensified 2-fold in August 2020 against August 2019, which was accompanied by a sharp change of  monthly dynamics from a 28.6% decline to 33.3% growth.

It is noteworthy that more impressive activity was recorded in  mortgage transactions with agricultural land, which increased 5-fold  in y-o-y terms, and the same over the month after the 85.7% decline  in July came out. According to the data of the State Committee of the  Real Estate Cadastre of the Republic of Armenia, 20 land mortgage  transactions (or 4.8% of the total number of mortgage transactions)  were made in August, of which 10 were mortgaged with agricultural  land.

According to cadastral data, a total of 421 mortgage transactions  with real estate were made in August this year. Over the year, the  number of transactions fell by 13%. The dominant part of them (64.4%)  was committed in Yerevan, and among the regions, most deals were made  in the Kotayk region (12.4%) and least of all in Gegharkunik (0.5%).

Most of the mortgage collateral transactions were made for apartments  (278 or 66% of the total number of transactions) and private houses  (80 or 19%), and the third most preferred are garages (26 or 6.2%).

In August, mortgage-backed transactions with apartments significantly  slowed down growth - to 3% from 76.5% in July (with a y-o-y decline  of 22.8%), deals with private houses completely went into decline by  3.6% from 53.7% growth in July (with a y-o-y decline by 8%).

In particular, 206 mortgage transactions with apartments were made in  Yerevan, with private houses - 23.  Transactions with apartments also  dominate in the regions - 72, and private houses are more popular  (57) than in the capital. And with land mortgage collateral  transactions were made in 15 regions (including 10 agricultural  purposes), and in the capital 5.

To note, according to the Central Bank of Armenia, the volume of  mortgage lending by banks and credit companies exceeded 450 billion  drams ($ 927.2 million) by August, with a y-o-y growth of 34%, with  an increase in January-July by 15%, of which in July alone - by 3%.  Of the total volume of mortgage lending, banks account for 93% or  417.2 billion drams ($ 860 million), with a y-o-y growth of 37%, in  January-July - by 16.3% (of which 3% growth- for July).

It should be noted that among credit companies the leaders in  mortgage loans are the National Mortgage Company and Affordable  Housing for Young People, as well as the First Mortgage Company and  Fides, specialized in mortgage loans.