Prices are decreasing in the real estate market in Armenia, especially in the secondary market. Andranik Harutyunov, a member of the board of the Association of Realtors, shared this information with Aravot.
“In the last two years, we experienced a large migration to Armenia, which caused a significant increase in prices in the rental market, even doubling or tripling them. This surge led people to buy apartments and rent them out. We had two waves of migration from Russia, followed by incidents in Artsakh, prompting many to buy or rent apartments. Some chose to convert their savings into real estate. As a result, apartment prices in the secondary market became overvalued. However, as the flow of people to Armenia began to decrease and the people from Artsakh settled, demand in the secondary market started to decline. Consequently, prices are now decreasing,” he explained.
Harutyunov noted that it is difficult to specify the exact percentage of the price reduction. “Approximately, there has been a 10 to 30 percent reduction in some cases over the last few months,” he added.
According to Harutyunov, the primary real estate market is currently active because the income tax refund on mortgage loans taken after January 1, 2025, will no longer apply in Yerevan. “Many citizens are trying to take advantage of this law this year. There is also some activity in the secondary market, but mainly those apartments are sold at more reasonable prices. Besides the high prices, mortgage interest rates are quite high here: 13.5%, 14.5%, and 15.5%. Given the already high prices, it is challenging for many of our citizens to purchase real estate with a mortgage. The secondary market will become more active when prices become more affordable for our citizens,” said the specialist.
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Recently, there has been much discussion about the high prices of real estate and services in Yerevan, comparable to those in European cities. When asked what caused this, Harutyunov responded: “Many countries aim to stimulate their real estate market through foreign citizens. Our situation is slightly different because we have a large Diaspora.
The factor of Diaspora Armenians significantly contributes to the price increase. Since they have substantial incomes, they can afford to buy high-priced apartments in central Yerevan or Arabkir. This topic often comes up, with people questioning why prices are so high in Yerevan compared to Tbilisi, where it is cheaper. The explanation is simple: we have a Diaspora. If we consider events from the Syrian war to today, whenever there is a problem in any country, many Armenians come to Armenia. Many, trying to diversify their funds, also buy real estate in Armenia, so they have a place to live if they need to move. This unplanned demand has contributed to the price increase. The past two years saw unprecedented developments: the Russian-Ukrainian war and unfortunate events in Artsakh, creating a significant demand for real estate and driving prices even higher.”
Roza Hovhannisyan
