Real Estate in Armenia: Market Overview, Current Prices and Prospects

Armenia today is one of the fastest-growing real estate markets in the post-Soviet space. Despite this, it remains a “hidden gem” for many European and Asian investors.

By 2026, the market demonstrates stability: its volume reaches $1.25 billion, and the number of transactions is setting historical records. In this article, we will examine how the real estate market in Armenia works, where to look for profitable properties, and what risks may arise.

Current Market Condition and Key Indicators

The market has gone through a phase of explosive growth and transitioned to stable development.

Capitalization: since 2018, the market has grown significantly — from $880.4 million to a projected $1,249.3 million by 2026 (+4.3% average annual growth). This confirms a steady long-term development trend.

Macroeconomics: GDP is growing at 5.7–6%, and inflation has stabilized at 3.1–3.3%. This creates favorable conditions for long-term investments. The stability of key economic indicators allows investors to plan 5–10 years ahead.

Geography of Prices: Yerevan vs Regions

The capital accounts for almost 28% of all transactions in the country. Prices range from $590 to $2342 per sq.m depending on the district and distance from the center.

Market characteristic: the premium segment (Kentron) is stable, business districts (Arabkir) are actively developing, and peripheral districts (Nubarashen, Kanaker-Zeytun) show the highest percentage growth rates, which attracts developers of new buildings.

Regional Cities and Tourist Clusters

Regional cities demonstrate higher growth rates compared to the capital due to infrastructure and industrial development:

• Abovyan: +15.5% (active development of industrial zones, a diamond processing factory recently opened).
• Vanadzor: +11.5% (revival of economic activity in the industrial center).
• Tourist centers (Dilijan, Jermuk, Sevan, Goris): price growth over 20% in 2024 due to the World Bank’s $100 million program aimed at modernizing infrastructure in seven tourist clusters.

Tourist regions attract investors looking to benefit from seasonal resort rental. However, successful growth requires more active management.

Where to Invest?

Residential real estate is the most in-demand market segment. Stable demand is provided by government mortgage subsidy programs such as “Affordable Housing”, as well as urban residents, repatriates, and foreign residents.

The commercial sector is growing due to the development of the IT industry and international business. Yerevan is becoming an IT hub with offices of global companies. Rental rates in the center are $15–25 per sq.m per month.

Industrial real estate has the greatest growth potential. Due to the shortage of quality premises and the opening of new factories, demand significantly exceeds supply. Recommended for experienced investors with a 7–10 year horizon.

Land is attractive in tourist zones and for industrial development. Important: foreigners can own land only through an Armenian company or long-term lease. Direct ownership of land by foreigners is prohibited by the Land Code of Armenia.

Rental Yield

Investments in rental real estate in Armenia remain more profitable than in many European capitals.

In Yerevan, annual rental yield is 5–8%. Demand for apartments in the city center (Kentron and Arabkir) is supported by IT specialists, students, and repatriates who prefer short-term rentals. Internet platforms create additional opportunities for income from short-term rentals.

In resort regions, yields are higher and reach 7–8% and more during the season. However, such investments require professional management: seasonality must be considered, cleaning and repairs organized, and the local tourist calendar understood. The main demand season is from May to October.

Tax Base and Mortgage Conditions

From 2026, Armenia is switching to calculating property tax based on market value, abandoning cadastral valuation. In 2025, the tax was 75% of the full rate, and from 2026 — 100%.

Tax rates range from 0.05% to 1.5%, depending on the type of property and its purpose. Payments are made annually.

The exact calculations of capital gains tax upon sale of real estate for non-residents depend on the ownership period and type of property. For precise details, it is recommended to contact tax authorities or a local tax consultant before purchase.

Income Tax Refund Program for Mortgages

In 2025, changes occurred in the income tax refund program:

• In Yerevan, the program no longer applies to mortgages concluded after January 1, 2025. It applies only to contracts signed before this date.
• In other regions (except border areas), the program is valid until January 1, 2027.
• The program will be completely terminated on January 1, 2029.

If you plan to use the tax deduction, it is no longer possible in Yerevan. For buyers from the regions, the application deadline expires in January 2027.

Financing

Mortgage rates in drams range from 6.8% to 13%, depending on the bank, loan term, and amount. Non-residents can use special programs, for example in Ardshinbank, with interest rates starting from 9.5%. For foreigners, notarized translation of documents and proof of income according to international standards are required.

Recommended banks for foreign citizens:

• Ardshinbank (rate 9.5% for non-residents).
• Ameria Bank (rates 6.8%–11%).
• ACBA Bank (rates 6.8%–10.5%).

Purchasing Real Estate in Armenia for Foreigners: Step-by-Step Guide

Armenian legislation allows foreigners to purchase real estate, but with some restrictions.

What can be bought without restrictions:

• Apartments, condominiums.
• Commercial premises (offices, shops, cafes).
• Garages, parking spaces.

What cannot be purchased directly:

• Land plots (any, including agricultural)
• Access is possible through establishing an Armenian company or long-term lease (up to 99 years)

How to buy real estate:

1. Obtain a TIN (Taxpayer Identification Number) from the tax authorities. This is free and takes 1–2 days.
2. Prepare documents:
   • Copy of passport with notarized translation into Armenian.
   • Certificate of no criminal record (if required).
   • Proof of income (bank statement).
3. Find an object on platforms, for example on realting.com. Check for cadastral certificate and absence of encumbrances.
4. Conclude a contract. It must be prepared by a lawyer or notary. The contract must be notarized. Oral agreements are not recognized in court.
5. Pay for the purchase by bank transfer in Armenian drams (AMD). For transactions over 50 million AMD, proof of source of funds is required.
6. Register ownership with the Cadastre Committee. The process takes 2–5 days and costs from €115 to €200 plus notary services (€50–100).
7. Receive the ownership certificate. This is an official document in Armenian confirming your rights.

The entire process, from selecting an object to registration, takes 15–30 days if all documents are in order.

Risks and Limitations

Investors should pay attention to the following factors:

Geopolitical instability: conflicts in the South Caucasus and peace talks between Armenia and Azerbaijan cause market fluctuations. The ceasefire remains fragile, and political events can affect prices in the short term.

End of tax benefits: the income tax refund program for mortgages in Yerevan will end in January 2025, in other regions — in January 2027 and 2029. This reduces the attractiveness of primary housing for buyers.

Infrastructure problems: the “North-South” project is progressing, but many regions still suffer from transport issues. This limits the accessibility of regional real estate for investors.

Political dependence: changes in policy or sanctions may affect the flow of foreign investment and the exchange rate of the national currency.

Restrictions on land ownership: direct land ownership is impossible, which complicates large projects that require the creation of local companies.

Bottom Line

Armenia is one of the most attractive real estate markets in the South Caucasus for foreign investors. Here, a favorable legal regime (except for land issues), a stable economy, and relatively low prices compared to neighbors create excellent opportunities. However, it is important to consider tax specifics, the political situation, and choose a strategy that matches your risk level.

If you need consultations on specific properties, yield calculations, or tax issues, contact a local tax consultant or lawyer specializing in working with foreigners in Armenia.