Armenia’s construction boom continues, but the key indicator today is not so much the volume of new supply as the speed at which the market is absorbing it. According to JAMnews, an analysis of new-build project websites shows that more than half of the apartments in ready-to-move-in buildings have already been sold. Depending on the location and the specific project, the share of sold units in completed developments often ranges from 40% to 70%.

💡 Buyer demand remains strong even after several years of rapid price growth and the gradual phase-out of government incentives. The scale of the market is clearly reflected in cadastral statistics. In 2025, Yerevan registered 74,458 real estate transactions, which is 8% more than in 2024, when the figure stood at 68,914. Around 21,000 transactions involved apartments in multi-unit residential buildings, with 15,000 of them, or 72%, taking place in Yerevan. More than half of all residential purchase transactions in the capital involved apartments in new-build developments, while 89% of buyers purchased directly from developers.

Why buyers continue to choose new-build housing:

— the mortgage income tax refund made new-build purchases financially more attractive for some officially employed buyers;
— new developments carry a lower risk of outdated utility systems, worn-out elevators, and sewage problems, which are typical of part of the older housing stock;
— buying directly from a developer is perceived as a clearer legal model;
— new properties are expected to have higher liquidity for resale or rental;
— for the diaspora, an apartment in Yerevan is often not only an investment, but also a “point of return” to the country.

💼 However, since 2025, the income tax refund has no longer applied to new purchases in Yerevan, except for projects that received construction permits before January 1, 2022. For mortgages issued after January 1, 2025, a quarterly refund limit of AMD 750,000 has also been introduced. The benefit will then be gradually reduced in the regions: from 2027, restrictions will affect Aragatsotn, Ararat, Armavir, and Kotayk, while from 2029 the program is expected to be discontinued almost nationwide, except for selected border settlements.

This means that the strong demand seen in 2025–2026 is partly driven by inertia. Buyers are still entering projects that retain the right to the income tax refund, while developers are benefiting from accumulated demand. However, as older permits expire, the market will become less dependent on subsidies and increasingly driven by buyers’ real incomes, project quality, rental yields, and the ability of properties to retain their value.

At the same time, Grant Thornton Armenia notes that in 2025 the total number of real estate transactions in the country decreased by 1.61%, while Yerevan, by contrast, recorded growth of 8.04%. In the regions, the number of transactions fell by 5.33%. Sales of apartments in multi-unit residential buildings increased by 34%, which means demand is becoming increasingly concentrated in the urban apartment segment.

How this may change the market in the coming years:

— completed and nearly completed projects will have an advantage over early-stage developments, as buyers become more cautious about delivery timelines;
— properties that still qualify for the income tax refund will retain an additional premium while such offers remain available;
— districts outside central Yerevan and nearby cities, including Abovyan, may see additional demand due to a lower entry threshold;
— the secondary market will remain relevant for buyers who need immediate occupancy or a more affordable budget;
— after the tax incentive ends, the market will become more sensitive to price, construction quality, and developer reputation.

⏱️ For buyers, the high level of sold-out new-build projects in Yerevan means that the strongest performers will be developments with clear documentation, a good location, realistic delivery timelines, and a product suitable not only for resale, but also for living or long-term rental.

🔍 Planning to buy an apartment in a new-build development in Armenia? On Realting, you can compare current listings in Yerevan and other cities, explore prices by district, choose properties from developers or agencies, and assess the potential of a purchase for living, rental income, or long-term investment.