Why invest in Armenian real estate?

Geographical position of Armenia

Armenia, a country located in the northeastern section of the Armenian Plateau in West Asia, occupies a special position due to its geographical location. This highland landlocked territory covers about 40,000 square kilometers and is inhabited by approximately three million people. Armenia borders four countries: Georgia to the north, Azerbaijan to the east, Iran to the south and Turkey to the west.

Historical and cultural significance

The central part of the country is the Ararat Valley, which is not only historically and culturally significant, but also important for the geography of the Armenian nation. According to legend, it was on this majestic mountain that Noah's Ark stopped.Image of Mount Araratis also present on the coat of arms of Armenia, which emphasizes its important role in the cultural identity of the nation.

Cultural heritage

The country is heir to a deeply rooted culture and diverse history, which has been subjected to various influences over the centuries. From the 19th century until 1917, Eastern Armenia was part of the Russian Empire, which left a significant mark on its culture and architectural appearance.

Tourism development

In recent years, Armenia has been actively working on improving conditions for tourists in an effort to develop the tourism sector. The country has built the latest tourist facilities and planned many attractive routes. There are both local tourist companies and large international operators working in the field of tourism. Armenia has tremendous opportunities for the development of various types of tourism, including:

• Ecotourism
• Ski resorts
• Mountaineering

Settlements

There are 48 cities within the country, most of which are small in size: 34 settlements have an area of less than 10 square kilometers, while 22 of them have fewer than 10,000 inhabitants. The main city and the only major metropolitan area is Yerevan, which has more than one million inhabitants and is characterized by a significant population density similar to that of Moscow.

Major cities of Armenia

Other cities that can be considered relatively large, although smaller in scale compared to Yerevan, include:

• Gyumri
• Vagharshapat
• Kapan
• Vanadzor
• Handed out
• Alaverdi
• Stepanavan
• Dilijan
• Artashat

Thus, if you consider the options of moving to Armenia with the possibility of living in a big city, the choice is obvious - it will undoubtedly be Yerevan with its diversity and rich urban life.

The role of Yerevan in the economy

Yerevan, being the capital of Armenia, occupies a key position in the economy and industrial sector of the country. The largest manufacturing enterprises, trade and financial institutions are located here, which makes it the center of economic processes. This city is considered to be one of the oldest settlements on the planet, which testifies to the millennia-long history of human settlements on this territory.

Modern life in Yerevan

The image of the city has changed considerably over the last hundred years, reflecting alarming changes and modern trends in its development. Armenia, with its rich historical heritage and unique culture, continues to attract the attention of both locals and tourists from afar, making it an attractive place for both real estate investment and living in a favorable environment.

Sights of Yerevan

The sights of Yerevan, the capital of Armenia, are mainly concentrated in its center, which was conceived and realized by the outstanding architect of Armenian origin Alexander Tamanyan in the first half of the twentieth century. Since then, the city has undergone many changes: some structures have been erected and others, unfortunately, have disappeared. Nevertheless, the general plan and unique architectural style have remained unchanged. Yerevan is famous for its amazing pink tuff, which became the main building material, thanks to which the city got its nickname“Pink City.”.

Education Center

Today Yerevan plays a central role as Armenia's educational hub. It has about 160 educational institutions teaching foreign languages, including Russian, as well as 11 higher education institutions and several branches of foreign universities, among which are educational institutions from Russia. The cultural scene of the city is very rich: Yerevan has many museums, theaters and historical churches.

The capital of Armenia has the following transportation hubs:

• two international airports,
• railroad station,
• three bus stations,
• developed subway networks.

These factors ensure good transportation accessibility. Important highways and railroads pass through the city, which connect it with other regions of Armenia.

Gyumri

Gyumri, which ranks second after Yerevan in terms of population and area, is considerably inferior to the capital: its population is ten times smaller and its area five times smaller. The city is located on the Shirak plateau, which is crossed by numerous mountain ravines. In 1988 Gyumri was hit by a devastating earthquake, which had a negative impact on its economy, as a result of which many enterprises were closed or temporarily shut down.

Growth of activity in the Armenian real estate market

In recent months, Armenia has seen a noticeable revival in the real estate market. This is due to the government's recent decision to cancel the tax refund program for those who buy new housing, including mortgage interest rates.

Real estate prices, which declined in 2020, are gradually recovering and are already comparable to pre-pandemic and pre-war levels. Experts anticipate that, provided the stable political and economic situation is maintained, real estate values will continue to rise.

Data on transactions in Yerevan

In Armenia's capital, Yerevan, the number of apartment transactions has doubled over the past year. More than 40% of all transactions are related to residential properties such as apartments and houses, and over a third relate to the sale of land plots.

According to information from the State Committee on Real Estate Cadastre of Armenia, by the end of last year the price of a square meter in Yerevan increased by 9.2% year-over-year to 357,000 drams, which is equivalent to about 733 U.S. dollars.

Housing prices in different neighborhoods

High prices for housing are traditionally fixed in the center of Yerevan, especially in Kentron district, where the average cost per square meter reaches 672,000 drams ($1,380).

The second place in terms of price is occupied by Arabkir district, where the price is equal to 475,000 drams ($975) per square meter. Kanaker-Zeytun with a price of 350,000 drams ($720) per square meter completes the top three.

The most affordable housing is offered in Nubarashen district, where the cost per square meter averages 190,000 drams ($390).

Market activity in the regions

Activity in the real estate market is also observed in the regions of the country, especially in the vicinity of Yerevan. In some of these regions, the cost of housing has become not only comparable, but in some cases exceeds the price of real estate in some metropolitan communities.

• In Abovyan, the price per square meter was more than 204,000 drams ($416).
• In Vagharshapat - 168,000 drams ($343).
• In Ashtarak and Artashat - 140,000 drams ($285).
• The highest prices are recorded in Tsaghkadzor, where the cost of housing reaches 295,000 drams ($600) per square meter.

Reasons for the growing interest in Armenian real estate

The sources of the growing interest of foreign investors, particularly CIS residents, in Armenian real estate lie in various economic and social factors.

• Language accessibility:First of all, a significant number of Armenians are fluent in Russian, which makes communication easier and more accessible.
• Construction growth:There has been an increase in construction opportunities amidst the increased demand for housing in the country.
• Luxury real estate:Finally, the third reason for the increasing importance of Armenian real estate is the availability of elite housing: comfortable apartments in the prestigious districts of Yerevan are becoming more and more attractive compared to offers in the secondary market.

Conclusion

In conclusion, I would like to emphasize that Armenia, with its rich history, cultural heritage and unique natural landscapes, is becoming increasingly attractive for real estate investments. Despite the economic challenges the country is facing, the real estate market is showing stable growth, which makes it interesting for both local and foreign buyers.

Attractive conditions for purchasing housing, especially in major cities such as Yerevan and Gyumri, open doors for people looking for safe and profitable investments.

Prospects of the real estate market

The housing market in Armenia offers many opportunities for investors who want to both secure their future and enjoy life in this magnificent country. I believe that together with the growth of tourism and the improvement of infrastructure, real estate in Armenia will continue to attract more and more attention from investors and tourists. This creates a solid platform for further development, which means that we can expect new interesting real estate projects that will make Armenia even more attractive for living and investing.

Investment opportunities

Anyone considering buying real estate in the country can find something to suit their needs - whether it's:

• Historic apartmentin the center of Yerevan
• Cozy homein picturesque Gyumri

Armenia is open to those who are ready to enjoy its culture, nature and centuries-old traditions, while ensuring a stable future for themselves. It is time to pay attention to this amazing corner of the world and utilize its gift for potential benefits and personal happiness.