Fitch sees signs of overheating in Armenia’s property market
31.07.2023,
08:40
There are signs of overheating in Armenia’s property market, with residential property prices rising by an average of 10% yoy in 1H23, owing mainly to the heightened demand from the population surge, Fitch Ratings said as it has upgraded Armenia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB-' from 'B+'. The Outlook is Stable.
YEREVAN, July 31, /ARKA/. There are signs of overheating in Armenia’s property market, with residential property prices rising by an average of 10% yoy in 1H23, owing mainly to the heightened demand from the population surge, Fitch Ratings said as it has upgraded Armenia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB-' from 'B+'. The Outlook is Stable.
However, Fitch sees risks of a disorderly correction as relatively low, and any spill over on the broader economy will likely be limited, given strong household and corporate balance sheets.
Banks have adequate dram and US dollar liquidity, and a destabilizing outflow of deposits is not seen as likely.
According to the National Statistical Committee of Armenia(NSC). some 18,176 real estate deals were concluded in Armenia in May 2023, up from 16,661 deals concluded in April 2023. Most of the deals – 5,225- were concluded in the capital city Yerevan, while the least number were concluded in Vayots Dzor province- 361. -0-
