How can foreigners buy real estate in Armenia and obtain residency?

Opportunities for foreign citizens to purchase real estate in Armenia

Foreign citizens have the right to acquire real estate in Armenia, including apartments, which can be registered 100% in private ownership. Owners of such properties can freely manage them: they can sell, rent, gift, bequeath, or use them in any other way they see fit. No approval from government institutions is required to carry out any of these transactions, and there is no need to prove Armenian descent or any connections to Armenia.

Possibility of obtaining a residence permit

In addition, purchasing property can serve as a basis for obtaining a residence permit. It is important that the apartment is used for commercial purposes, such as being rented out. This will allow the owner to apply for a residence permit as an investor contributing to the development of the Armenian economy.

The historical significance of Armenia and Yerevan

Armenia is known for its centuries-old history. In particular, Yerevan, which locals believe was founded in 782 BC, is one of the oldest cities. Although many historical monuments have not survived in perfect condition, modern Yerevan took on its current appearance during the Soviet era.

Architectural features of Yerevan

In the city center, at Republic Square, there are iconic buildings in the Stalinist Empire style that shape the architectural appearance of Yerevan.

• Armenian architecture is distinguished by its unique aesthetics.
• Elements of ecclesiastical style are used.
• Traditional ornaments and pink volcanic tuff are used as building materials.

Thanks to these characteristics, Yerevan has earned the nickname "the pink city."

Construction trends in Yerevan

In recent years, there has been active construction of new buildings in Yerevan. The city hall reported that in 2021, the following was issued:

• 1863 permits for design.
• 3044 building permits,
• 529 acts of work completion.

These indicators suggest that the construction process will continue to gain momentum in the coming years.

Population and the residential real estate market

Currently, approximately one third of Armenia's population lives in Yerevan, where the number of residents is just under three million. This impacts the housing market as well as the service sector. Yerevan has the highest apartment prices in the country and is where job opportunities and various services are concentrated.

The active real estate market in Gyumri

Gyumri, the second largest city in Armenia, has a population of about 120,000 people. In Yerevan, 30% of all real estate transactions in the country take place. The local market is quite active and includes many participants. The year 2021 was significant in terms of the number of transactions:

• A total of 63,000 real estate transactions were concluded in Yerevan.
• This accounted for 31.4% of the total number of transactions across the country.

Compared to the results of 2020, the growth was 24%.

Introduction

One of the reasons for the increased interest in purchasing real estate in Yerevan is the introduction of a government program that allows buyers to reclaim a portion of their income tax. This initiative is aimed at buyers of new constructions, which can include both apartments and private houses purchased on credit, and it enables them to recover taxes on the amounts paid in interest on mortgage loans.

Despite the fact that the program has been in effect since 2014, it began to gradually wind down in July 2022. As a result, many potential buyers are eager to take advantage of this rate while the opportunity still exists.

Housing prices in Yerevan

Real estate prices in Yerevan vary significantly depending on the location. Apartments in the city center usually cost three to four times more than those in more remote areas. Over the past year, housing prices have increased in both more prestigious and less expensive areas — on average, prices across the city have risen by9.2%.

Expensive neighborhoods

Currently, the most expensive areas of Yerevan are:

• Kentron:672,000 drams per square meter (1,400 dollars) with an annual growth of 10.2%
• Arabkir:475,000 drams per square meter (1,000 dollars) with an increase of 8.4%
• Kanaker-Zeitun:350,000 drams per square meter (700 dollars) with a growth of 10.8%

Available areas

Among the affordable neighborhoods, Nubarashen stands out, where the price per square meter is189,000 drams($400) and shows growth of7.7%.

Factors affecting prices

Several factors influence price changes in Yerevan. These include:

• The rapid growth of the economy (GDP increased in 2021 by6.1%)
• Increase in construction material prices
• The decrease in mortgage rates, which fell from 18% in 2009 to around10.5%today

Moreover, government support through income tax refunds has made the process of acquiring new buildings easier. The high demand for housing is also linked to an increase in tourist flow and population growth, which leads to active rental of properties. However, new construction in the center of Yerevan continues to be limited.

The impact of migration on the market

In addition to this, in 2022, a large number of migrants from Russia, Ukraine, and Belarus arrived in Yerevan, which led to a sharp increase in rental prices. Within one month, under the influence of this influx, rental costs rose by30%Regardless of the area. Some property owners have started setting prices that are twice the usual rates, which has also affected rental yields.

State of the real estate market

Despite the noticeable interest in purchasing real estate, the buying and selling market reacts quite slowly to changes in demand, which in turn increases the rental yield of properties. For example, a good two-bedroom apartment in the central parts of Yerevan can still be purchased for amounts starting from80 to 100 thousand dollars.

The current real estate market in Armenia has not truly become international: although foreigners occasionally buy property, the number of transactions remains quite low. For instance, in 2021, foreigners purchased1,335 objectswhile selling more than twice as much —2,573If the migrants who arrived in Yerevan in the spring of 2022 decide to stay here for a long time, it could significantly change the situation in the local housing market.

Conclusion

In summary, it can be said that the real estate market in Armenia, particularly in Yerevan, is showing dynamic development and attracting increasing attention from both local and foreign buyers.The right of foreign investors to acquire real estate without significant restrictions opens up broad prospects for long-term investments.The opportunity to obtain a residence permit when purchasing an apartment is becoming an additional incentive for those who wish not only to live but also to develop a business in this country.

Architecture and infrastructure of Yerevan

The infrastructure of Yerevan continues to improve, and the city's architecture, which blends elements of historical and modern styles, makes it unique. Undoubtedly, the city has many resources for further growth and development, making it attractive not only for living but also for investment projects.

Key growth factors

• Growing interest in new buildingsand the activity in the rental market leads to an increase in housing prices.
• State supportTax incentives for buyers of new buildings remain an important factor contributing to the growth of the market.
• Increase in the number of tourists and migrantsdetermines the further growth of demand for real estate.

Prospects for foreign investors

Against the backdrop of all these changes, Yerevan could become an important attraction for investors willing to invest in a rapidly developing market.I am convinced that with each passing year, Armenia will attract more and more foreigners who wish not only to purchase real estate but also to become part of the new economic and cultural space that continues to develop in the country.