Real estate investments in Armenia: market analysis, prices and the purchase process

About 68% of apartment transactions in Armenia occur in the country’s capital, Yerevan. At the same time, prices for a “square” in Yerevan range from $600 to $2,300, depending on the area. In this article, we will take a detailed look at the process of buying real estate in Armenia, including market analysis, housing prices and the specifics of legislation when making a transaction involving foreigners.

Market structure and number of transactions

According to the Statistical Committee of the Republic of Armenia, by the end of July 2024, 1967 residential real estate purchase and sale transactions were registered in the country, which is 10% more than in June 2024 and 11% more than in July last year.

Since the beginning of the year (for the period from January to July 2024), 12,399 housing transactions have been registered in Armenia, which is 4.4% more than in January-July 2023.

The structure of the residential real estate transactions market is dominated by purchase and sale transactions with apartments in apartment buildings. Their monthly share from January to July 2024 ranged from 62% in April and May to 72% in February.

According to statistics, in January-July 2024, about 68% of transactions (5,520 transactions) with apartments were made in the capital of the country – Yerevan. The remaining 32% of IL 2607 transactions occurred in 10 marzes of the country (marz is an administrative unit of the country, an analogue of the region).

Buying real estate in Armenia by foreigners

Foreigners can buy an apartment in Armenia without restrictions, which cannot be said about land plots — it can only be rented for up to 99 years. In addition to owning any type of real estate in Armenia, a foreigner can also freely resell, lease, and inherit it.

In January-July 2024, foreign citizens bought 478 residential real estate objects in Armenia – 331 apartments and 147 houses. During the same period, foreign citizens sold 809 residential properties – 466 apartments and 343 houses.

According to the Statistical Committee, Russian citizens most often buy residential real estate in Armenia. In 2023, they purchased 721 residential properties — in January-July of this year, they managed to buy 305 housing units. Then there are citizens of European countries, the USA, Iran, and other CIS countries.

The purchase of real estate does not give any preferences for obtaining a residence permit (residence permit) in Armenia. However, you can get a residence permit in Armenia if you open a startup or any company engaged in commercial activities. For example, if an investor is interested in a rental business in Armenia, then for this you can register a company, purchase real estate and then lease it out.

Average house prices in Armenia

According to the results of July 2024, the average market prices for apartments in apartment buildings in Armenia increased significantly compared to the same month in 2023.

First of all, let’s look at how the average prices of apartments in the capital have changed – in Yerevan. Let’s consider the price changes in both the national currency – Armenian dram (AMD) and foreign currency – US dollars (USD).

The administrative district with the highest average price per square meter is Kentron, which is the central district of Yerevan. Kentron is the most prestigious district of Yerevan, the heart of the Armenian capital. There are many historical and cultural attractions here. The average price per square meter at the end of July 2024 here amounted to 900,000 AMD/sq.m, which is 1.3% less than in June 2024, and 8% more than in July 2023.

The area with the lowest price per square meter is Nubarashen – 229,050 AMD/sq.m.: this is 1.3% more than in June this year, and 6.8% more than in July last year. The average prices for apartments here are almost 4 times less than in Kentron. 

Such a low price in Nubarashen was formed due to the fact that this area is located at a considerable distance from the center of Yerevan, and has a much more modest infrastructure than other districts of Yerevan. Nubarashen, along with the Nork-Marash district, is also the area with the smallest number of inhabitants – about 12.6 thousand people. In turn, in seven of the twelve districts of Yerevan, the number of residents exceeds 120 thousand people.   

The average price per square meter in Armenian drams in the administrative districts of Yerevan

The average price per square meter in US dollars for the administrative districts of Yerevan

The largest cities in Armenia after Yerevan are Gyumri, Vanadzor, Vagharshapat and Abovyan. In these cities, apartment prices increased by 6.9–15.5% over the year, depending on the location. The highest average price per square meter among them in the city of Abovyan is 300,200 AMD/sq.m, +0.6% by June 2024 and +15.5% by July 2023. Next are Vagharshapat – 255,000 AMD/sq.m, 0.4% by June this year and +6.9% by July 2023; Gyumri – 171,000 AMD/sq.m, +8% by July last year; Vanadzor – 148,500 AMD/sq.m, +0.3% by June this year and +11.5% by July of last year. Below are graphs of changes in the average price per square meter of apartments in Armenian drams and US dollars.

Buying real estate in Armenia by steps

What needs to be done to make the purchase of residential real estate in Armenia successful: 

1. Collect the documents.

Having selected the object you need, you need to negotiate with the seller about the price and other terms of the transaction. And, of course, before making a deal, you must have all the necessary documents on hand:

• Notarized translation of the buyer’s passport and a document confirming the identity of the seller.
• A certificate of the seller’s net ownership.
• An extract on the absence of utility debts from the seller.
• The number of the bank account in Armenia from which the money will be transferred during the transaction.
• Documentary evidence of the origin of the funds.
• A certificate of marital status.

2. Conclude a purchase and sale agreement.

To formalize the contract of sale, you and the seller will need to visit the notary office and take all the documents with you. 

The purchase and sale agreement must contain the following:

• Information about the parties entering into the contract, with all necessary data, including last name, first name, patronymic and passport data.
• Information about the object, including its exact description and an extract from the cadastre with a description of the property.
• The price of the object with an indication of the terms and payment scheme.
• Defining the responsibilities of both parties.
• An indication of protection against eviction (possible claims from third parties).
• Signatures of the participants in the transaction and the translator.

3. Register the ownership right.

After providing the notary with a copy of the contract and confirming the transfer from the bank, the process of transferring rights to real estate in the cadastre begins. This process usually takes about three to four business days, after which the buyer is issued a certificate confirming his ownership of the housing.

4. Pay for the transaction.

On July 1, 2022, a new law began to take effect in Armenia, which requires non-cash payments for all transactions over $10,000, where transfer of ownership or registration with government agencies is required.

Otherwise, the transaction may be declared invalid. Thus, the only way to pay for real estate is a non—cash transfer (from a local account to the seller’s account via bank transfers), or a SWIFT transfer from a foreign bank to the seller’s account in Armenia.

Note. It is also possible to purchase real estate in Armenia remotely: to do this, you need to issue a notarized power of attorney to the person who will physically carry out the transaction. In this case, registration of the purchased housing will also be part of his duties.

Related expenses when buying

Among those:

• Transfer of ownership rights — €115.
• Notarized translation of a foreign passport — €7-13.
• Realtor services — an average of 1.5–2.5% of the transaction amount. 

The calculation of the real estate tax is based on the cadastral value of the object, which is as close as possible to the current market value. Every year, property owners need to pay a tax, the amount of which is approximately 0-1% of the value of the property.

Frequently Asked questions about buying real estate in Armenia

Can foreigners buy real estate in Armenia?

Yes, foreigners can freely buy apartments and houses in Armenia. However, the purchase of land plots is limited — they can only be rented for up to 99 years.

Which city in Armenia is the most popular for buying real estate?

The most popular city for buying real estate is the capital, Yerevan. About 68% of all apartment transactions are made there.

Which district of Yerevan is considered the most prestigious?

The most prestigious and expensive district of Yerevan is Kentron (central district).

Does buying a property give you the right to obtain a residence permit in Armenia?

No, buying a property by itself does not give you the right to obtain a residence permit. However, a residence permit can be obtained by opening a startup or a company that carries out commercial activities in Armenia.

Is it possible to buy real estate in Armenia remotely?

Yes, it is possible. To do this, you need to issue a notarized power of attorney to the person who will physically carry out the transaction.

How does payment happen when buying real estate in Armenia?

From July 1, 2022, all transactions over $10,000 must be carried out cashlessly. Payment is made via bank transfer from a local account or via SWIFT transfer from a foreign bank.

What is the real estate tax in Armenia?

The annual property tax is approximately 0-1% of the cadastral value of the property, which is close to the market value.

Author

Roman Tomashevich Analyst

I show the situation on the real estate market in graphs and figures.

Co-author

Yulia Yanukovych Editor-in-Chief

I am responsible for the work of the editorial office. I write expert interviews and guides.

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