The government stimulus program will help those real estate investors by paying back three years worth of taxes after the third year.
Real estate and construction sectors were one of the worst suffered sectors of the Armenian economy like in USA and in many other countries. Now the officials say that the economy in Armenia bottomed in July and already started a modest growth. Since it's very difficult to attract investment during the difficult economic times, the Armenian government decided to come up with this incentive to attract more investment in the sectors of construction and housing.
Banking Remained Strong
Surprisingly no Armenian bank suffered huge losses during the last recession. Due to conservative policies the banks in Armenia were able so successfully fight the recession and and continues lending. However, interest rates on loans and mortgages still are higher than in European countries and USA. This creates more investing opportunities in the Armenian banking industry, the growth of which has been announced by the government as one of the priorities of the economy. The country's banking intends to be a bridge between the East and West, thus aiming to become a regional financial hub.
The government thinks this latest investment stimulus will be a real attraction for contractors. While the property prices have dropped significantly during the past year, on the backdrop of stabilizing house prices this stimulus will be an attractive tool for foreign and overseas investors to invest in Armenia's real estate industry and receive three years worth of taxes back after the third year.
To learn more about investing in Armenia visit Armenian Development Agency.
Written by Armen Hareyan
Posted October 29th, 2009 by Armen Hareyan
