By Siranush Adamyan
Apartment transactions in Yerevan nearly doubled in July, while prices in the city center rose 12.7% from a year earlier, according to the World Bank’s Armenia Monthly Economic Developments: September 2026 report, released Monday.
The bank said the housing market’s accelerating growth was fueled by demand linked to new arrivals from Russia and the Armenian diaspora.
Construction and non-trade services remained the main drivers of economic growth, expanding 26.5% and 17%, respectively, in July. Overall economic activity growth, however, slowed to 6.5% from 7.4% in June. It grew 7.7% in January-July.
Hakob Baghdasaryan, president of real estate firm Accern Holding, said in an interview with CivilNet last month that the first effect of arrivals from Russia is felt in the rental market, before extending to home sales.
“When rents become more active and increase, they put pressure on the prices of properties under construction and those already on sale,” Baghdasaryan said.
Many people who relocated to Armenia in 2022 initially rented apartments, he said, but some are now purchasing homes. Baghdasaryan linked the shift to the prolonged Russia-Ukraine war and concerns about the safety of savings held in Russia.
“For Russian citizens, Armenia can serve as a backup country, whether for temporary or permanent residence or for conducting business,” he said.
Baghdasaryan said transactions at Accern Holding’s new residential developments had also increased in recent months, while prices had risen by about 15%. Those figures reflect the company’s own data and not official market-wide statistics.
He said external demand was particularly significant in the high-end segment. Buyers from Russia, the diaspora and, to a lesser extent, Iran may purchase homes not only to live in but also to diversify their assets or maintain ties with Armenia, he said.
Baghdasaryan also cited rising construction and project-startup costs as a factor behind higher prices. In Yerevan’s more expensive districts, he said, preliminary costs for a medium-sized residential project can reach several million dollars, excluding the cost of land.
Such costs limit the entry of small and mid-sized developers, reduce competition and contribute to higher sale prices, he said.
The market’s future growth will depend on the stability of external inflows, Baghdasaryan added. A sharp shift in the flow of people or capital from Russia could also affect the real estate sector.
Stories
