ArmInfo. Armenia will continue to be active in the mortgage lending market. This opinion was expressed on February 1 during a press conference by Head of the Central Bank of the Republic of Armenia Martin Galstyan, conditioned his assessment by the continuing high level of supply and demand in the real estate market.
At the same time, M. Galstyan noted that, in general, according to preliminary data, in the banking system of the country at the end of 2021, there is a decrease in the total volume of lending, but the growth of mortgage loans remains at a high level of 30%. The head of the Central Bank explained a similar trend by the still existing mortgage benefits relating to the return of income tax.
It should be reminded that on August 12, 2021, the government approved amendments to the tax code of the Republic of Armenia, which provide for the gradual abandonment of the income tax refund program within the framework of mortgage lending in the territory of Yerevan. As a result, the benefit under the program will be canceled from July 1, 2022. From now on, income tax will not be returned to those citizens who decide to purchase an apartment on a mortgage in the 1st zone of Yerevan (center). From January 1, 2023, the income tax refund will be canceled for those persons who purchased housing in the 2nd zone, from July 1, 2023 in the 3rd zone. From January 1, 2025, the benefit will be canceled throughout the capital. The proposed restrictions will apply to individual and multi-family residential buildings built on the basis of building permits issued after January 1, 2022.
