How Many Properties Have Foreigners Purchased in Armenia? What is Happening in the Real Estate Market

There is significant activity in Armenia's real estate market, with the highest number of transactions recorded in May this year since 2010. Both sales and rentals have increased.

In an interview with Armenpress, Hmayak Hakobyan, head of the Cadastre Committee's Department of Cadastral Valuation and Market Analysis, stated: "We have analyzed the number of transactions in the months of May over the past few years. Since 2010, the highest number of transactions in the market was registered in May 2022, with 17,822 transactions. Compared to last year, the number has increased by 7.1% in April across the republic, and by 10.8% compared to May of the previous year."

Hakobyan noted an increase in purchasing demand, driven by various programs, such as attractive instruments for mortgage loans, indicating a thriving market.

In May this year, a total of 5,074 sales transactions were completed, reflecting a 13.4% increase compared to May of the previous year, and a 13.1% rise from April of this year. Furthermore, this marks the highest number of sales registered in May since 2011. Foreign citizens were involved in 454 transactions.

In May alone, foreigners purchased 177 properties in Armenia, representing a 7.3% increase compared to April and over 55% compared to May of the previous year. Hakobyan noted that the majority of these foreign purchasers are from Russia, followed by the United States and Iran, primarily of Armenian descent.

According to official statistics, the average market price per square meter for apartments in Yerevan increased by 1.5% compared to April and by 17.2% compared to May 2021. Real estate agencies have also observed significant price increases.

Gor Agajanian, Deputy Director of Agajanyan Real Estate Agency, remarked that transactions began to actively resume by the end of February and into March due to increased visitor flows to Armenia following the Russia-Ukraine situation. "The market is quite active today—whether for apartments, private homes, or commercial spaces. Some businesses from Russia have relocated to Armenia due to sanctions. When demand for something is high, prices start to rise. Currently, there are many renters and potential buyers in Armenia, which is contributing to notable inflation in prices. Even recently, we noticed a price increase when the dollar exchange rate fluctuated. Even those who were planning to conduct transactions in dollars subsequently raised their prices. I believe that in the future, even if the dollar rate returns to previous levels, no one will call any agency to say 'lower our house price by 20,000',” Agajanian added.

Official statistics indicate that rental transactions in Armenia decreased to 906 in May. However, there has been a 52.5% increase in the number of apartment rental agreements compared to May 2021, totaling 183, with a 7.6% increase compared to April 2022. Nevertheless, these statistics may not accurately reflect the actual numbers, as many rental agreements go unregistered to avoid taxes.

The real estate agency notes a significant increase in rental transactions, especially among foreign renters. They also observed another trend where landlords are evicting their tenants after 1-2 years to find new ones at higher rates. “The house that was rented for $500 is now being rented for $1,000. In some places, rentals that were $500 have jumped to $1,200 or $1,300, with an average increase of 50% in rental prices,” Agajanian stated.