Armenian real estate market sees decline  following phased end  of  income tax refund program for mortgage holders

ArmInfo. The Armenian real estate market experienced a notable downturn in 2025, with the total number of transactions falling by approximately 3,800 compared to the  previous year. The decline was most pronounced in the primary housing  market, according to data shared by Suren Tovmasyan, Chairman of the  RA Cadastre Committee, during a press conference on January 19. 

Official data indicates a decrease in primary market transactions   from around 19,000 in 2024 to about 16,300 in 2025. Tovmasyan  attributed this trend to the gradual phasing out of the income tax  refund program for mortgage holders. Despite the year-over-year drop,  he noted that market activities in 2025 were still higher than those  in 2023 and the 2020-2021 timeframe.

Recall, the income tax refund program, which has been in place since  November 2014, allowed citizens purchasing new-build apartments or  private houses directly from developers to offset their mortgage  interest payments using their paid income tax. The government has  been incrementally restricting the geographical scope and eligibility  of this incentive as part of a planned wind-down of the policy.