ArmInfo. At the end of 2025, the mortgage portfolio in Armenia amounted to 1.6 trillion drams ($4.2 billion), a 13.2% increase from the previous year, as stated by Daniel Azatyan, Chairman of the Union of Banks of Armenia (UBA) noted during a press conference on February 17. According to Azatyan, mortgages thus accounted for 21.3% of the total loan portfolio of the Armenian banking system.
He also mentioned that mortgage lending has been growing for the third year in a row, but the pace is slowing. In 2025, the growth slowed to 13.2% from 37% in 2024. He attributed this slowdown to the end of the income tax refund program for mortgage lending, which ended in Yerevan in 2025, but is still ongoing in the regions.
In this regard, the UBA head emphasized that the growth in 2025 was primarily driven by an increase in mortgage lending volumes in the country's regions - by 30.9%, or 113.1 billion drams, to 479.7 billion drams, while in Yerevan, the growth was 7.4%, reaching 1.2 trillion drams with an increase of 82 billion drams.
He pointed out the regions closest to Yerevan - Kotayk and Armivir - are the most active. "However, we hope that this trend will extend to other regions of the country in the near future," Azatyan said. Regarding real estate prices, he referenced Central Bank estimates indicating that real estate is currently overvalued by 20-25%. "There are two potential solutions here. Either the excess 25% will be neutralized over the next few years, returning everything to normal, or if prices decline by 20-25%, the financial system can handle the associated risks. While there may be other economic consequences, they are not expected to significantly impact the stability of the banking system," Azatyan noted.
It is worth noting that, according to the RA Real Estate Cadastre Committee, the average apartment price in Yerevan increased by only 0.3% in 2025, reaching 464,300 drams per square meter. In the regions, the average apartment price reached 171,000 drams per square meter, with an annual increase of 16.4%.
