Prices of Overvalued Apartments Begin to Stabilize

In the past two years, the inflated prices in the real estate market are beginning to stabilize today. This was stated by Andranik Harutyunov, a member of the board of the Association of Real Estate Agencies of Armenia, in an interview with Sputnik Armenia.

“There was a demand higher than normal, there were inflated prices, and the Central Bank also noted the overvaluation of prices. Now the demand has decreased, and prices are going through stabilization,” said the expert, reminding that the main factor behind the overvaluation in the market was the influx of people and finances from Russia to Armenia in 2022, which gradually decreased later, leading to a drop in demand and a reconsideration of prices.

“There is definitely a change in prices in both the rental and secondary markets. When there was a demand in the market, a large quantity of properties were needed, and prices rose. Now, as demand has decreased and most Russians have left Armenia, new buildings have been constructed, which has also filled some of the demand, resulting in prices naturally starting to stabilize. The question is that many owners are slow to respond to this stabilization; they resist and do not wish to lower prices. However, the market has its own adjustments, and it is the market that dictates the price,” Harutyunov noted.

It was also mentioned that according to the official statistics of the State Committee of Real Estate Cadastre, in the first quarter of 2025, the number of rental transactions in Yerevan decreased by 27% compared to the same period in 2024, with the number of apartment rentals decreasing by 77.5% and residential houses by 79.1%.

The official analysis regarding rental prices remains silent. Current studies of existing offers in the market indicate that rental prices for apartments have dropped by 30-40%. For example, in the years 2022-23, rental prices for 2-3 room apartments in the outskirts of Yerevan exceeded 200,000 AMD, but today, one can find an apartment at that price in newly built buildings in the same communities and even in the city center. For instance, in Nor Norq, the rental price of a renovated modestly furnished 2-room apartment has decreased to around 130-150,000 AMD.

Regarding the sale of real estate, according to official statistics, in the first quarter of 2025, 3,785 apartments were sold in Yerevan, which is a 7.2% increase compared to the first quarter of 2024 but a 22.9% decrease compared to the fourth quarter of 2024.