The real estate market in Armenia is entering a phase of cooling and selective growth. According to the latest data, the total number of transactions has decreased by 5.9% in Yerevan to 15,714 deals and by 6.4% in the regions to 38,451 deals. However, it is important to note that this overall decline in transaction volume is accompanied by rising housing prices in various regions, indicating a shift in investment interest and market transformation.
The average market value of apartments in the regions has increased by 12.9% year-on-year, reaching 162,3 thousand AMD per square meter. Despite the overall reduction in transactions, this price rise reflects sustained demand, particularly in resort and developing settlements. Meanwhile, the average cost of apartments in multi-story buildings in Yerevan rose by 1.5% in the first quarter of 2025 to 464,3 thousand AMD per square meter, indicating relative stability in the capital’s housing segment.
Tsaghkadzor remains the most expensive location among the regions, with a price of 459,5 thousand AMD per square meter (up 4.5%). Abovyan (324,7 thousand AMD, +13.4%) and Vagharshapat (287,4 thousand AMD, +13.3%) rank second and third, respectively, demonstrating steady demand from both local residents and investors. The lowest prices are recorded in Tumanyan (27,3 thousand AMD, up 3%), Akhtala (45,2 thousand AMD, down 3.8%), and Chambarak (54,5 thousand AMD, up 16.5%). Except for Akhtala, price increases are observed, suggesting efforts by developers to tap into undervalued markets.
Interestingly, despite the overall decline in transaction numbers in the regions, apartment sales in this segment grew by 2.9% to 978 deals. However, the vast majority of all transactions in the regions (64.7%) are still linked to land plots, the number of which decreased by 2.9%. More than 85% of these lands are designated for agricultural use, highlighting the agrarian nature of regional markets.
Other real estate segments in the regions show significant declines: sales of private houses fell by 18.3% (1,132 deals), garages by 37.7% (422 deals), public buildings by 14.2% (247 deals), and industrial properties by 18.3% (94 deals). A drop in rental activity is also evident, with the number of deals decreasing by 8% to 1,154. The notable exception is the rental of land plots, which rose by 3.1% to 529 deals, and the rental of public buildings, which, despite a 6.5% decline, remains significant at 507 deals. Rental of apartments and houses is virtually nonexistent, linked to a shortage of quality supply and migratory changes.
The real estate market in Yerevan appears relatively stable. Despite an overall 5.9% decline, the apartment segment shows a transaction increase of 8.7%, reaching 2,807 deals (64.6% of all apartment transactions). However, significant declines are observed in other segments, such as private houses, buildings, and land. Growth is recorded in the garage and industrial building segments.
Price dynamics in Yerevan are uneven: in Kentron, the average housing price dropped by 0.4% to 898 thousand AMD per square meter, in Arabkir by 1.4% to 628,2 thousand AMD, while in Davtashen and Nubarashen prices rose (up 2.5% and 4.1%, respectively), reflecting the diversity of local markets within the capital. A decline in prices and rental activity is also noted in the capital, with an overall 27% drop in rental deals, particularly a sharp decrease in apartment and house rentals.
Overall, the real estate market in Armenia exhibits a dual dynamic: overall activity is declining, but prices in promising locations and key housing segments continue to rise. This structure suggests a redistribution of demand, with some investor and buyer attention shifting from broad market segments to more liquid assets in the capital and growing regional markets. It is expected that this trend will persist into the second half of 2025: stabilization in Yerevan and targeted growth in regions with high potential.