Ashot Osipyan sees the need for a long-term state program to activate  the real estate market

ArmInfo. The state should  help stabilize the real estate market.  The founder of the Banking  Management School Ashot Osipyan told about this on December 9 during  a zoom conference organized by the Economic Journalists Club.

''When the real estate market is down, loans become problematic. The  state should implement a long-term program for the development of the  mortgage market by providing cheaper loans, "he said. In this vein,  Ospiyan explained that this should be a special program with special  affordable interest rates, which would artificially shape the supply  in the real estate market.

In addition, he pointed out the need to stimulate construction and  introduce legislative changes in this area.  In this regard, the  expert recalled the law on property tax initiated by the government,  the adoption of which he considered inappropriate during the  coronavirus pandemic, but this appeal did not find a response from  the authorities.

According to the Financial Rating of Banks and the Ranking of  Armenian Credit Companies prepared by ArmInfo IC as of September 30,  2020,  in total, taking into account the mortgage portfolio of banks  and four mortgage companies (National Mortgage Company, Affordable  Housing for Young People, Fides and the First Mortgage Company), the  volume of mortgage loans amounted to 662 billion AMD ($ 1.4 billion),  with an annual growth of 30.2%. Moreover, in the banking system  alone, the mortgage portfolio grew by 36.3% in y-o-y terms. The total  mortgage portfolio of ''National Mortgage Company" and "Affordable  Housing to Young People'' amounted to 200 billion drams ($ 409.4  million) with an annual growth of 19.6%. All 17 Armenian banks  operate in the mortgage market, and 10 of them, along with the  classic mortgage, also provide energy-efficient "green" loans for the  purchase / construction / renovation of housing.

It should be noted that the National Mortgage Company CJSC and the  Affordable Housing for Young People CJSC have been operating in  Armenia since October 2010. The Central Bank of the RA is the sole  founder and shareholder of these companies. Companies are called upon  to refinance mortgage loans from financial organizations. Moreover,  since 2019, according to the revised, more affordable and attractive  lending conditions, with regard to the interest rate, prepayment,  loan amount, maturity, subsidies, and within the framework of the  housing to young people program, in addition to the above, the  requirement for the total age of spouses applying for a mortgage loan  has been improved.