Armenia’s Real Estate Market in 2025: A Year of Structural Shifts

Insight: Armenia’s Real Estate Market in 2025 - A Year of Structural Adjustment

The Armenian real estate market underwent a notable shift in 2025, marking a transition from years of rapid expansion to a more balanced and differentiated landscape across regions. While demand remained resilient in Yerevan, activity slowed in the marzes, reflecting both policy changes and evolving market conditions.

This Insight outlines the key trends shaping Armenia’s real estate sector in 2025, based on Grant Thornton Armenia’s annual market analysis. The full interactive dataset is available through our Tableau dashboard. 

A Market Adjusting After Policy Changes

The market dynamics of 2025 were primarily shaped by the suspension of the income tax refund program across Yerevan’s administrative districts. This policy shift stimulated accelerated buying in late 2024, followed by a predictable cooling phase in 2025.

Despite the overall 1.61% decline in total real estate transactions, the impact was uneven:

• Yerevan recorded an 8.04% increase, driven by continued internal migration and sustained investment interest.
• Regional transactions fell by 5.33%, reflecting slower demand and a gradual correction after several years of elevated activity.

December stood out as the most active month of the year, accounting for 10.09% of all transactions.

Residential Apartments Drive Market Activity

Purchase and sale transactions reached 59,748 in 2025, a 3.38% increase year-on-year.
This growth was entirely driven by apartments in multi-unit residential buildings, which saw a remarkable 34% surge in transactions - signalling ongoing urban demand even amid price adjustments.

The highest regional increases were recorded in:

• Kotayk (+48.94%)
• Yerevan (+39.07%)
• Shirak (+37.9%)

Meanwhile, land sales declined by 11.61%, largely due to the completion of the tax refund program and market saturation following the 2022–2024 construction boom.

Foreign Buyers Increase Their Market Presence

2025 also saw heightened interest from foreign nationals, who increased their real estate purchases by 26.99%, totaling 2,014 transactions - the highest in the past three years.

Demand was particularly strong among:

• Russian citizens (+33.12%)
• CIS nationals (+77.03%)
• European buyers (+15.93%)
• U.S. citizens (+13.61%)

Price adjustments in Yerevan created a more accessible entry point for foreign capital, positioning Armenia as an appealing destination amid geopolitical and economic uncertainty in the region.

Price Trends: Downward Pressures in Yerevan, Continued Growth in Regions

After years of sustained price appreciation, 2025 marked the beginning of a mild correction in several districts of Yerevan:

• Kentron: –1.4%
• Arabkir: –1.75%
• Shengavit: –0.98%

Across other districts, price growth slowed significantly.

In contrast, no price declines were recorded in the marzes. Syunik, Armavir, and Tavush saw accelerated appreciation, while Lori continued to offer the most competitive pricing in the country.

Outlook for 2026

Looking ahead, the market is expected to maintain steady activity. Continued application of the income tax refund program in the regions, alongside projected 5–5.9% economic growth, is likely to support demand throughout 2026.

The anticipated phase-out of the tax refund program in the regions beginning in 2027 may stimulate anticipatory buying in the second half of 2026, particularly in the primary residential market.

Explore the Full Analysis

This Insight highlights the key themes shaping Armenia’s real estate market in 2025.
To explore the data in detail, including regional breakdowns, property types, price trends, and long-term patterns, visit our interactive Tableau dashboard.

Analysis of the Armenian Real Estate Market in English.

Analysis of the Armenian Real Estate Market in Armenian.