Real Estate Prices to Remain Unchanged in Armenia in 2025
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Loading... - Vittoria Riva
- 10 Mar 2025
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According to Rustam Grigoryan, a founding member of the Council of the Association of Real Estate Agencies of Armenia and director of the real estate agency "Kolibri," the secondary real estate market in Armenia has shown a more passive trend in 2024 compared to the previous two years. In an interview with ArmInfo, Grigoryan noted that while the secondary market experienced a slowdown in both transactions and value, the primary market in Yerevan maintained its momentum, largely due to the income tax return mechanism for mortgage loans, which will now only be available in the regions.
Grigoryan stated that real estate prices are expected to remain stable in 2025. He attributed this stability to developers having made strategic adjustments and gaining a better understanding of the market dynamics. He emphasized that while prices will not decrease, they will hold steady at current levels, particularly regarding the actual sale prices rather than the listed prices.
He expressed concern over the discrepancies in the data presented by the Cadastre, which sometimes gives a distorted view of the market by suggesting that prices or transactions are increasing. For instance, he pointed out a significant rise in transactions in the Malatia-Sebastia administrative region, which was misleading as it reflected transactions from three years prior that were only recently registered.
Despite the passive nature of the secondary market, the State Committee of Real Estate Cadastre reported an 8.8% increase in the average market value of real estate in apartment buildings in Yerevan in 2024, reaching 426.8 thousand drams per square meter. The highest prices for apartments are found in the Kentron (Center) community, averaging 905.6 thousand drams per square meter, followed by Arabkir at 637.3 thousand drams and Davitashen at 476.7 thousand drams.
In terms of transactions, Yerevan saw a 32.1% increase over the year, totaling 17,853 transactions, with apartments making up the majority at 61.2%. Notably, transactions for garages doubled, while those for private houses decreased by 10.8%. Additionally, land purchase and sale transactions fell by 21.8%.
The newly established Association of Real Estate Agencies of Armenia aims to create a unified front with the state to enhance the qualifications of market specialists and improve service quality, aligning the domestic real estate market with international standards to attract foreign investment.
Overall, while the secondary market may be experiencing a slowdown, the primary market remains active, and real estate prices are expected to stabilize in 2025, reflecting the current market conditions and strategic adjustments made by developers.
