Armenia’s Property Market Remains Stable

Predictions of an imminent collapse did not come true

Armenia’s real estate market has continued to demonstrate resilience in early 2026, despite repeated predictions of an imminent collapse. According to Andranik Harutyunov, founder and chief executive of Silver Ria real estate agency, alarmist narratives circulating in public discourse are not supported by transaction data or actual market behavior.

Why Talk of a “Crash” Distorts Reality

Harutyunov argues that much of the public debate relies on oversimplified interpretations of statistics. Describing the market as either “rising” or “falling” fails to capture its complex structure, which includes primary and secondary segments, rentals, diverse districts, and varying property classes.

Even within the same administrative area, price differences can be substantial. A new residential project may average significantly lower prices than another located just a few streets away. When higher-end properties dominate quarterly sales, average prices rise statistically, without indicating a market-wide increase.

Property Sales Continue

Over the past two years, analysts have repeatedly warned of a looming market “burst” driven by slowing sales. Harutyunov maintains that transaction volumes do not confirm these claims. Both the primary and secondary markets continue to function normally, with steady deal flow and ongoing activity.

Following legislative changes that limited income tax refund incentives for mortgages, developers adjusted their sales strategies rather than exiting the market. Long-term instalment plans lasting five to ten years, often without bank involvement, have become increasingly common and helped sustain demand.

Housing Prices in Armenia Are Growing Moderately

According to Harutyunov, property prices in Armenia have not declined and continue to grow at an average annual rate of 5–10%. This growth reflects natural capitalization dynamics and inflationary pressures. As the value of money erodes, real estate prices rise accordingly, reinforcing property’s role as a store of value.

The Issue of Buyer Awareness in the Real Estate Market

One of the most persistent challenges in the market remains limited awareness among potential buyers. Many households underestimate their financial capacity or fail to explore existing mortgage and support programs, leading to misconceptions about affordability.

Even years after the introduction of income tax refund schemes linked to mortgages, some buyers are only now discovering these opportunities, often regretting missed chances to enter the market earlier.

Mortgages Have Become Faster and Easier

Mortgage lending has also evolved significantly. Compared to a decade ago, approvals are now faster and more straightforward, largely due to income declaration systems and salary transparency. Banks can quickly assess a borrower’s financial profile, improving access to housing finance.

Long-Term Demand for New Housing in Armenia

Long-term demand for newly built housing is expected to remain strong. Much of Armenia’s housing stock is 50 to 60 years old and does not meet modern living standards. Buyers increasingly prefer new developments offering parking, infrastructure, and amenities aligned with contemporary urban lifestyles.

In the regions, however, construction remains constrained by weak infrastructure. Developers often have to invest heavily in roads, water supply, and sewage systems, which can account for up to 30–40% of total project costs.

Outlook for the Armenian Real Estate Market in 2026

Looking ahead, Harutyunov does not anticipate dramatic changes in 2026 unless major geopolitical shocks occur. In the absence of such disruptions, the market is expected to continue its steady trajectory, with ongoing construction activity and sustained buyer demand.

As reported by International Investment experts, Armenia’s real estate market in 2026 shows clear signs of structural stability. Moderate price growth, adaptive development models, and consistent transaction volumes suggest resilience rather than vulnerability, with collapse scenarios remaining unsupported by empirical evidence.