ANALYSIS OF THE INTERACTION OF REAL ESTATE AND FINANCIAL MARKETS OF THE REPUBLIC OF ARMENIA OVER THE PAST FIVE YEARS

Abstract

The real estate market is influenced by the development of the real and financial sectors, as supply and demand in this market depend on the state of the economy and the financial system of the country. The vulnerability of financial stability from fluctuations in real estate prices is mainly considered from the point of view of lending to the construction industry and loans secured by real estate, the materialization of risks of changes in the value of collateral. Sharp fluctuations in supply/demand for real estate, and consequently prices, may adversely affect the security and quality of bank loans, creating risks in terms of financial stability. The real estate market is an extremely important economic player. Real estate, in addition to meeting one of the most important needs of society, is one of the main "reserves" of wealth in the economy. Thus, in developing countries, the market value of shared real estate is usually many times higher than the capitalization of financial markets and the volume of investments coming into the country. This is a unique source of economic "energy". The evaluation and analysis of real estate in Armenia, the use of weak analysis methodology, are considered to be the causes of problems in the real estate market with incorrect versions and procedures, the lack of high-quality data on local markets, unreasonable market research and investment decisions based on them.