Prices of New Apartments in Yerevan Expected to Rise Amid Warnings

Due to a sharp increase in local fees and charges for construction permits, prices of new apartments in Yerevan are expected to rise by 10-15 percent. This was stated by representatives of construction companies during a hearing in the National Assembly.

The Yerevan City Council has adopted decisions regarding the establishment of local tariffs and charges in its session on December 26, 2023. Instead of paying the previously required 700,000 AMD for obtaining a construction permit, developers will now have to pay several times that amount.

"This means that apartments will no longer be accessible to families with incomes between 800,000 and 1 million AMD," highlighted Armen Sakapetoyan, a member of the board of the Armenian Association of Developers.

According to developers, if this decision is not changed, investing in the construction sector will become pointless. "In Yerevan, there are areas where the cumulative amount of local tax and fees exceeds the profit tax by 5-6 times. This leads to the conclusion that developers will either significantly increase the prices of the houses for sale or engaging in construction will at least not be profitable for the business, prompting them to take their businesses to other countries," said Gurgen Grigoryan, president of the Armenian Association of Developers.

Many have already abandoned investments, as they have no guarantee that new taxes will not be imposed tomorrow for state registration or address allocation.