ArmInfo. Armenia's real estate market may grow significantly by the end of the year. These estimates were shared by Arsen Avetisyan, the founder of the Armenian Association of Real Estate Agents, during a press conference on September 12.
He explained that this will be due to the fact that by the end of the year the law on the return of income tax within the framework of mortgage lending expires. For developers it will be the last opportunity to sell off residential real estate. In addition, the activity in the market will be facilitated by industry events, including the major exhibition TOON Expo (October 25-27).
Thus, from September to the end of October and continuing on through inertia (until the end of the year), as Avetisyan noted, Yerevan will experience an increase in real estate transactions. The first quarter of 2025 will be realtively calm and market activity should be expected only from April 2025. He also highlighted the situation in other cities of Armenia, such as Hrazdan, Abovyan, Echmiadzin, Nor Achin, where there has been a deficit of new buildings for many years. Now, according to him, these cities are experiencing significant development. According to Avetisyan, consequently, the real estate market outside of Yerevan will also be active in the upcoming years, as there is an accumulated demand.
In his turn, the Chairman of the Board of the Association of Real Estate Agents Artur Mnatsakanyan noted that companies, that began construction projects 3 years ago, unaware of the abolition of tax deductions, will have to find other ways to fill the financial gap. According to Mnatsakanyan, they will use various instruments for this purpose, including discounts, installments and others. In other words, their offers will be quite attractive to buyers.
At the same time, the head of the Council of the Association recommended buying residential real estate now, because after 2025, according to his estimates, there will be a deficit in the market of new buildings. he said. Independent experts believe that due to various stimulating endogenous (tax deductions) and exogenous (capital flight to Armenia) factors, the real estate market in Armenia is currently thriving. However, these factors are slowly being neutralized and there is a gradual, almost imperceptible price decrease in the market. In their opinion, over the past 2-3 years the country has had a completely inadequate price policy in terms of fundamental factors. Prices in Yerevan have become indistinguishable from those in Moscow, Sochi, Prague and higher than in Madrid or Lisbon.
It should be noted that according to the data from the Real Estate Cadastre, in the first half of 2024, there were 7,820 real estate sale and purchase transactions in Yerevan, which is 21.7% higher than a year ago, while the growth for the half-year was 10.3%. The lion's share of purchase and sale transactions in the capital falls on apartments 59,7% or 4674, with an annual growth of 21,1% (with a growth of 10,9% for the half-year). Then follows transactions with garages - 1466 or 18,7% (an annual growth of 2 times, with growth of 48,5% for the half-year); private houses - 619 or 7,9% (an annual decline of 16,2%, with decline of 15,6% for the half-year); public buildings - 519 or 6.6% (an annual growth by 12.6%, with growth by 3% during the half-year); land - 479 or 6.1% (an annual decrease by 16%, with decrease by 17.1% during the half-year); industrial buildings - 63 or 0.8% (an annual decrease by 3.1%, with a decrease of 13.7% during the half-year). A total of 32,658 real estate transactions were made in Yerevan during the reporting period (with an annual growth of 14.8%, and a growth of 2% for the half-year), which constitutes 27.1% of the total number of real estate transactions made in the Republic.
