Will the Abolishment of Income Tax Refund Law Lead to Collapse in the Housing Sector in Yerevan? ‘Zhoghavor’

‘Zhoghavor’ newspaper reports: ‘The newspaper has previously written that the housing sector is on the brink of collapse. According to real estate sector specialists, it is predicted that starting next year, in 2024, a collapse will begin in the real estate sector as demand and consumption for housing will decrease.

According to data published by the Central Bank, the threshold for mortgage loans taken for housing construction has surpassed 1 trillion drams. From January to June 2023, the commissioning of residential buildings and the construction carried out in the regions of the Republic of Armenia and Yerevan amounted to 92 billion 803 million drams. The main reason for such figures, according to the Central Bank, is the existence of the income tax refund law. Economists who have studied the housing sector in Armenia predict that after the law is restricted, once it is enforced in the regions, this numerical scale may decrease.