Apartment prices in Yerevan are rising: What’s driving the surge?

As property prices in Yerevan continue to rise at double-digit rates, mortgage lending is also accelerating. The Central Bank sees growing risks of imbalances building up in the market, with both apartment prices and the share of borrowers holding two or more mortgage loans on the rise.

What could be the consequences of continued growth in property prices and mortgage lending? And how well protected are homebuyers and banks if the real estate market begins to slow down?