T he article was published as part of the cooperation between "Orbeli" Center and Iran Daily.

In recent years, global structural changes in the world, including socio-economic issues, have directly impacted the real estate market. In this context, we emphasize the importance of analyzing Armenia’s real estate market. Particularly, the most recent data published by the RA Cadastre Committee revealed, that the number of transactions in the RA real estate market in December 2024 increased by 6.6% annually, and by 9.9% compared to the previous month, totaling 23,100. Furthermore, a comparison of December data over the past 10 years shows that the highest volume of transactions was recorded in 2024, which gives grounds to conclude that the number of transactions in the Armenian real estate market had a growth trend.

In December, real estate sales transactions increased significantly, particularly rising by 21.3% compared to the same period in 2023, and by 14% compared to November 2024, totaling 5909. The sales index for December 2024 is also the highest recorded in the last 10 years. Most transactions were conducted in the capital (2193), and in regions adjacent to the capital, including Kotayk (984), Armavir (482) and Ararat (474). In terms of property type, land sales accounted for the largest share (39.1%), followed by apartments (31.6%) and residential houses (10.8%).

The continuous growth of construction in Armenia, particularly in recent years highlights the development of the real estate market, making it one of the key branches of Armenia’s economic growth. In November 2024, construction volumes increased by 11.6%, and about 15% from January to November. In parallel, the number of building permits issued in Yerevan also increased. In November alone, 162 planning permissions and 303 building permits were granted, while the number of acts of construction completion was relatively low at 113. The summarized annual data revealed that the number of construction permits in Yerevan increased at the highest pace: particularly in 2023 there were 4448 permits issued compared to 4014 in the last year.

In December 2024, foreign nationals were parties to 368 real estate sales transactions, accounting for 6.2% of the total transactions. When analyzing transactions by states and regions, we noticed that the largest share is held by the property purchased in the Republic of Armenia by citizens of the Russian Federation (RF, 63.1%), followed by the United States of America (USA, 11.4%). In this context, there are some cooperative relations between the Republic of Armenia and the Islamic Republic of Iran (IRI), however, they constitute a relatively small part of overall transactions. In the list of partners, Iran ranks third in real estate purchases (4.8% share) and sales (2.8% share). Particularly, in December 2024, citizens of the Islamic Republic of Iran bought 8 and sold 6 real estate in Armenia. Compared to the last year, purchase and sale transactions increased by 2.7 and 2 times, respectively.

A remarkable picture emerges from the study of price dynamics, revealing that in December, the apartment prices per square meter increased by 4% year-over-year, but decreased by 0.1% compared to the previous month. The significant increase in demand for real estate in recent years has directly impacted price growth, largely driven by the income tax refund program implemented by the RA Government. The law was canceled across the entire territory of Yerevan in January 2025, from now on it will only apply to the RA regions, the main goal of which is to give impetus to housing construction in those areas. The influx of newcomers due to the Russian-Ukrainian conflict, along with the forced resettlement of compatriots from Nagorno-Karabakh, has to some extent affected property prices, leading to a significant increase in demand on the market.

Regarding real estate lease transactions, we note that they amounted to 1040 in December, which is 4.5% of the total number of state registrations of rights over real estate. According to statistics, the volume of transactions decreased by 21.5% compared to December last year, since the sector needs some regulation: a significant part of transactions is not reflected in the statistical indicators. Currently, actions are being taken in this direction, and as a result, a more accurate reflection of the number of transactions is expected.
Thus, the final annual data show that the RA real estate market remains active: purchase and sale transactions increased, reaching a 10-year high in December 2024. Along with the increase in transactions, real estate prices in the market have also increased, despite some monthly decreases, real estate prices in Armenia have a long-term upward trend. At the same time, the volume of construction and the number of building permits increased in Armenia, which once again documents the activity in the property market.