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Buying Real Estate in Armenia 2021 

Buying Real Estate in Armenia 2021

Armenia is a modern and fast-growing country with rich history and traditions, beautiful nature, excellent cuisine, low taxes, low crime rate, and low cost of living. Properties in central Yerevan increased in value by 34.5% in 2018-2019 due to the growing economy. Foreigners are allowed to be 100% owners of real estate in Armenia and can take advantage of investment opportunities. Armenia generally does not tax real estate transactions, capital gains, gifts, or inheritance. Real estate investment can also grant immigration benefits, such as residence or citizenship.


A knowledgeable local lawyer can help you navigate through the investment process, avoid pitfalls and minimize risks. Legal assistance can be very valuable in the process of due diligence checks, document review and preparation, payments, registrations, etc. Please contact us for a free evaluation of your case. 

Legal Guide to Buying Property in Armenia

#1. Foreign Ownership of Real Property

#2. Ownership Structure

#3. Payment Methods

#4. Appraisal and Survey

#5. Establishing Good Title

#6. Offer to Buy

#7. Preliminary Agreement

#8. Purchase and Sale Agreement (Deed of Sale)

#9. Registration

#10. Fees and Taxes

#11. Mortgage, Banking & Insurance

#12. Currency Exchange & Anti-Money Laundering Regulations

#13. Inheritance

#14. Tips and Pitfalls to Avoid

Property Prices in Armenia

Apartments in the central district of Yerevan (average price for one sq.m.). Source: official website of the Cadastre Committee. AMD/USD conversion according the rates published by the Central Bank

Last 12 Months

Month

Price

Change

Jan 21

$1,174

0

Dec 20

$1,173

-2.6

Nov 20

$1,204

-4.9

Oct 20

$1,266

-1%

Sep 20

$1,280

-1%

Aug 20

$1,293

-2.7%

Jul 20

$1,329

-3.1%

Jun 20

$1,372

-0.6%

May 20

$1,380

-1.3%

Apr 20

$1,398

+2.3%

Mar 20

$1,367

-1.6%

Feb 20

$1,389

+0.9%

Change in 12 Months

-15.5%

Last 12 Years

Year

Price

Change

2020

$1,234

-2.5%

2019

$1,266

+15.7%

2018

$1,094

+18.8%

2017

$921

+4%

2016

$885

0%

2015

$885

-1.8%

2014

$901

-14.4%

2013

$1,053

+3.1%

2012

$1,021

-10.8%

2011

$1,144

-10.2%

2010

$1,274

+2%

2009

$1,248

-20.8%

Change in 12 Years

-1.1%

Armenian real estate market grew exponentially between 2002 and 2008 with prices going up by 570%. In 2009 the country’s economy was hit by the global financial crisis and real estate prices went gradually down over the next few years. They remained flat during 2014-2016, and started growing in 2017. Prices in central Yerevan went up by 18.8% in 2018 and by 15.7% in 2019. In 2020, prices went down, mostly because of the devaluation of the local currency by more than 8%. The main factors contributing to the increase in prices in the recent years are:

  • Growing economy (7.6% GDP growth in 2019)
  • Lower mortgage interest rates. The rates went down from 18% in 2009 to around 10.5% and are expected to further decrease to 7-7.5%
  • Higher demand for rental properties, driven by growth in tourism and growing city population due to repatriation and urbanization.
  • Bank deposits become a less attractive alternative to rental property investment as interest rates on deposits continue to decrease. 
  • Limited construction of new dwellings in central Yerevan.

Get Free Advice

Real Estate 2018.11.27

Bank Sales & Foreclosed Properties

10 Reasons for Investing in Armenian Property

1. 100% Foreign Ownership

Foreigners can be 100% owners of real estate in Armenia: they can acquire, hold, lease, sell, bequest and otherwise dispose of their property on equal basis with locals. Foreigners do not need to have a residence permit or otherwise show any links to Armenia. Agricultural land can be owned through a legal entity.

2. High Appreciation Rates

Properties in central Yerevan increased in value by 34.5% in 2018-2019 due to growing economy and lowering mortgage rates.

3. High Rental Yield

The demand for rental properties is primarily boosted by the booming tourism industry.

4. Fast & Safe Registration

The entire process of buying a property in Armenia can take only a few days. Armenia ranks very high – the 13th – among 190 countries on the World Bank’s “Registering Property” index which measures both the efficiency and the quality of the property registration system. By way of comparison, the U.S. ranks 39th, the U.K. – 41st, , France – 99th.

5. No Gift or Inheritance Taxes

Armenia does not have gift or estate taxes.

6. No Tax on Capital Gains

Capital gains on the sale of real property by an individual are generally not taxed. 

7. Low Property Taxes

Tax real estate tax rates are in the range of 0% to 1% of the cadastral value which is normally significantly lower than the market value.

8. No Stamp Duties

There are no stamp duties. Only small official fees are paid and they do not depend on the value of the real estate.

9. Residency & Citizenship

Armenia offers temporary, permanent and special residence to foreign business people as well as citizenship-by-exception to important investors. Investing in real estate may qualify you for such immigration benefits. 

Property Search

Listings

Information on  properties in Armenia is abundant on listing websites such as estate.am, myrealty.ambnakaran.com, and list.am. These websites can give an idea of the type of properties available and their prices before you actually start your search. Having a clear idea of the type of property you are looking for (main residence, holiday home, rental or investment property) and its location (town or the countryside) will help make the property hunt a lot easier.


Agents/Brokers

In Armenia it is common for the agents to charge 2% to the seller and 2% to the buyer, bringing the amount of the commission to 4% of the value of the deal. The buyer will be asked to pay the commission separately and on top of the price of the property.

Tips on Selecting Rental Property in Yerevan

Country Overview

Header

Area SQ.KM.

29,700

PopulatioN

2,962,000

Capital:

Yerevan (1,075,000)

Religion:

christian (94.8%)

lANGUAGE: 

Armenian

LITERACY RATE: 

99%

Climate:

SUMMER 35C

WINTER 0C

Currency:

DRAM ($1 = 480 AMD)

Average Salary:

$387

GDP Growth (2019):

7.6%

GdP per capita:

$4,173

Unemployment:

16.9%

Inflation:

1.4%

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Copyright 2021 - Vardanyan & Partners LLC

Nerses Isajanyan

Managing Attorney
LL.M. Georgetown University
New York Bar | Armenian Chamber of Advocates

We are a team of licensed lawyers based in Armenia and Georgia. Our primary commitment is to provide quality service to clients at a compelling value that helps manage risk, overcome regulatory issues and advance their personal and business goals. 


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Nerses Isajanyan

Attorney

LL.M. Georgetown University

New York Bar | Armenia Chamber of Advocates

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