ArmInfo.In 2025, there were 11,070 mortgage transactions concluded in Armenia, exceeding the 2024 figure by 32.2%, according to data from the State Committee of Real Estate Cadastre of the Republic of Armenia.
Mortgage transactions account for 30.9% of the total number of secured transactions. The lion's share of these transactions (57.5%, or 6,364) were carried out in Yerevan, with an annual increase of 33.5%. The highest growth in mortgage transactions in the country's regions was recorded in Tavush, up 78.4% to 182. Six other regions recorded double-digit growth rates in mortgage transactions: Aragatsotn (48.6%), Ararat (33.2%), Armavir (44.4%), Lori (53.6%), Kotayk (48.3%), and Shirak (44.4%).
A decline in mortgage transactions was noted in three regions-Syunik, Gegharkunik, and Vayots Dzor- by 6.1%, 44.7%, and 21.7%, respectively. The lion's share of mortgages is for apartments (75.5%), followed by private houses (17.2%), public buildings (3.1%), land (2.7%), garages (0.8%), and industrial buildings (0.7%).
According to the Financial Rating of Armenian Banks and the Ranking of Credit Companies of Armenia as of December 31, 2025, prepared by the ArmInfo Investment Company, the total volume of mortgage loans issued by 17 banks and three mortgage companies (Affordable Housing for the Young and National Mortgage Companies, which are designed to refinance mortgages, and First Mortgage Company) reached 2 trillion drams ($5.2 billion). The annual growth rate of mortgage lending slowed down from 28% to 15%. Moreover, in the banking sector, mortgage lending slowed in year-on-year growth from 33% to 17%, totaling 1.7 trillion drams ($4.5 billion). This represents 85% of the total mortgage market in Armenia.
It should be noted that the state program for income tax refunds for mortgage holders was discontinued in Yerevan in 2025, but continues in the regions. Armenian authorities plan to completely abolish the income tax refund on mortgage loans starting in 2029. The abolition will be gradual. Thus, after January 1, 2027, income tax on mortgage loans in the primary market will not be refunded if the property is located in the regions near Yerevan - Aragatsotn, Ararat, Armavir, and Kotayk. From January 1, 2029, the income tax refund on mortgage loans will also discontinue in the remaining regions. The restrictions will not affect border settlements.
Recall, the state program for income tax refunds on mortgage loans for primary market housing purchases (apartments in new buildings or new private homes) has been in effect in Armenia since November 2014. Overall, from 2015 to 2024, 209.7 billion drams ($529 million) were refunded from the state budget to citizens who took advantage of this program. In 2025, this amount will amount to 96.67 billion drams, or $253 million (the initially planned 84.07 billion drams, plus an additional 12.6 billion drams allocated).
