Prices among available property listings in Yerevan have risen sharply in recent months, according to economist Aghasi Tavadyan. Over three months, he put the increase at 41% in Kentron, 48% in Arabkir and 71% in Erebuni. Rents have also risen noticeably.
According to Tavadyan, property prices were broadly flat from mid-2025 into 2026, but conditions changed in recent months. Rents increased, while the property and construction markets became more active. He said that around 400,000 people had arrived in Armenia from Russia during the 2026 season. At any given time, approximately 100,000 Russian citizens are now in the country, he added — a level he compared with the peak season of 2023.
The change is also visible in rental listings. As an example, Tavadyan said that a one-room apartment in Arabkir was offered for around 350,000 drams a month last summer, compared with approximately 500,000 drams this season.
Some owners have raised their asking prices while others have kept them unchanged, he said. Lower-priced apartments were taken quickly, leaving mainly more expensive listings on the market. In his assessment, the current increase is still smaller than the wave seen in 2022–2023.
Property market activity has increased
Tavadyan said Cadastre data from the past two to three months also pointed to a more active market. He described rising property prices and construction volumes, alongside increased activity in the banking system.
In his view, growth in central Yerevan has a substantial effect on Armenia’s overall economic growth figures. Other prices are also rising, he said, including amid higher petrol and diesel prices.
Tavadyan said the government had spent about a year trying to regulate taxation of rental income, with rates of 5% and 10% under discussion, but argued that the system was not fully functioning. With demand currently high, rents continue to rise, he said.
If the state intervenes, he believes temporary assistance for people who genuinely need rental housing would be more effective than imposing a ceiling on rents.
He said particular attention should be paid to people who were forced to move to Armenia after the 44-day war in 2020 and now live in rented accommodation. Such support could be provided for a short period, until market conditions change.
The increase may be temporary
Tavadyan believes the sharp rise seen in 2026 could prove temporary.
The market calmed the year after the surge in activity in 2022, he said, and a quieter period could follow the current increase as well.
In the longer term, the state should ensure that large but temporary inflows do not create lasting problems in the housing market, he argued. He also noted new hotel investments and additional hotels under construction in Armenia.
Agriculture, meanwhile, is experiencing problems and a decline, according to Tavadyan. Activity in Yerevan property, construction and banking continues to contribute positively to the country’s economic growth figures.