Armenia Real Estate Market Outlook - 2026
The Armenia real estate market size was valued at $880.4 million in 2018, and is projected to reach $1,249.3 million in 2026, growing at a CAGR of 4.3%. Real estate is defined as a property, which is made up of land and any physical structures on it such as various types of buildings.
Increased focus on diversification of Armenian economy, and rise in the number of property transactions drives the Armenia real estate market growth. There is growth in the number of transactions pertaining to the purchase and sale of residential homes, land, public & industrial facilities, and garages. In addition, there were around 47,000 transactions for state registration of the right to immovable property in Armenia. One of the major reasons for market growth has been the law on returning the income tax to residents who re-pay mortgage loan. Many Armenians are repatriating and buying real estate. The rise in demand for property has also increased property prices.
In addition, the affordable interest rates on mortgage loans fuels the growth of the market. For example, in Armenia, interest rates on mortgage loans are affordable and equal to some of the neighboring countries in the region. It is noted that the mortgage loans in Armenian Drams are around 12% per annum for 10 years. However, the mortgage loans in dollars are offered even at lower rates. However, high dependence on the Russian economy, and high poverty and unemployment rate are expected to hamper the Armenia real estate market growth.
Furthermore, the rise in focus of the government to foster the growth of the Armenia real estate market is expected to offer lucrative growth opportunities for market players. For example, in November 2019, the Armenian parliament approved amendments to the law, which determines the procedure for the cadastral valuation of real estate close to market value. Therefore, instead of the current land and property tax, there will be an introduction of a unified real estate tax, which will include land and building, defining the land as its object. This ensures the transition from cadastral value to real market value. Hence, cadastral prices will be formed, which will be close to market prices, thereby increasing the cadastral value of the real estate in Armenia. The amendments are expected to come into force by 2021. Moreover, the government-held consultation on the property tax system reforms in the country to develop progressive taxation mechanisms for real estate, which ensures a fair and equitable distribution of tax burden. The rise in focus on the real estate market by the government is expected to drive the growth of market in the future.
By Property Type
Industrial is projected to grow at a significant CAGR
The Armenia real estate market is segmented into property type and business type. By property type, the market is classified into residential, commercial, industrial, and land. The industrial segment is anticipated to dominate the market throughout the study period. There is a rise in demand for industrial spaces in Armenia. This is mainly due to the opening of new factories or manufacturing plants in Armenia. For example, recently in April 2019, a Chinese elevator manufacturer has signed Memorandum with Armenia to open a plant in Kotayk Province, with an estimated annual production of 2,000-3,000 elevators. Further, a new Diamond cutting factory opened in the city of Abovyan in December 2019. In addition, a new cheese factory in Noragavit was opened in March 2019. Therefore, growth in the number of factories or workshops is expected to increase the demand for industrial spaces in the country.
Depending on business type, the market is segregated into sales and rental. The rental segment is anticipated to dominate the Armenia real estate market share throughout the study period. Growth in the commercial and industrial segment is expected to increase the lease transactions in Armenia. The commercial segment is one of the major contributors to the lease segment. There are many U.S. brands present in Armenia. These include Calvin Klein, Tommy Hilfiger, Polo, and Gold’s Gym. Further, the new government, which was elected into power in May 2018, announced that they will remove all administrative and customs barriers for entrants. This will help new retailers to enter market, thereby boosting the growth of the lease real estate market.
By Business Type
Rental is expected to grow at a significant rate during the forecast period.
Competition Analysis
The key market players profiled in the report of the Armenia real estate market include AdaTech LLC, “Akcern” Real Estate Corporation, BARS Real Estate Company, “CHARAGAYT” Construction Company, Comfy LLC, Elite Group, MLL Industries, LLC, Renshin LLC, Roxwell LLC, and Step Investment Group.
Key Benefits for Stakeholders:
- The report provides an extensive analysis of the current and emerging Armenia real estate market trends and dynamics. The report also provides Armenia real estate market size from 2018 to 2026.
- In-depth Armenia real estate market analysis is conducted by constructing estimations for the key segments between 2018 and 2026.
- Extensive analysis of the market is conducted by following key product positioning and monitoring of top competitors within the market framework.
- A comprehensive analysis four major regions is provided to determine the prevailing opportunities.
- Armenia real estate market forecast analysis from 2019 to 2026 is included in the report.
- Key market players operating in the market are profiled in this report and their strategies are analyzed thoroughly, which helps understand the competitive outlook of the Armenia real estate industry.
Armenia Real Estate Market Segments:
By Property
- Residential
- Commercial
- Industrial
- Land
By Business
- Sales
- Rental
Key Players
- AdaTech LLC
- Akcern
- BARS
- CHARAGAYT
- Comfy LLC
- Elite Group
- MLL Industries, LLC
- Renshin LLC
- Roxwell LLC
- Step Investment Group
Armenia Real Estate Market Report Highlights
| Aspects | Details |
 By PROPERTY TYPE |
|
 By BUSINESS TYPE |
|
 By Region |
|
 Key Market Players | ADATECH LLC, MLL INDUSTRIES, LLC, ROXWELL LLC., COMFY LLC, “CHARAGAYT” CONSTRUCTION COMPANY, STEP INVESTMENT GROUP, RENSHIN LLC, “AKCERN” REAL ESTATE CORPORATION, ELITE GROUP, BARS REAL ESTATE COMPANY |
Analyst Review
There is an increased demand for various properties such as residential and industrial in Armenia. The highest share of the residential segment is attributed to increase in number of buyers of houses due to various government programs, which made housing affordable. Further, there is rise in the number of manufacturing facilities in Armenia, which is further increasing the demand for industrial real estate.
Moreover, the development in the commercial industry, and focus of the government toward diversification of economy further helps fuel the growth of the Armenia real estate market over the coming years. However, high poverty and unemployment rate hampers the growth of the market. On the contrary, increased focus of the government to help the real estate market offers remunerative opportunities for the market growth.
The Armenia real estate market size was valued at $880.4 million in 2018, and is projected to reach $1,249.3 million by 2026, growing at a CAGR of 4.3% from 2019 to 2026.
The forecast period considered for the Armenia real estate market is 2019 to 2026, wherein, 2018 is the base year, 2019 is the estimated year, and 2026 is the forecast year.
To get latest version of Armenia real estate market report
The base year considered in the Armenia real estate market is 2018.
The top companies holding the market share in the Armenia real estate market report include AdaTech LLC, “Akcern” Real Estate Corporation, BARS Real Estate Company
The top ten market players are selected based on two key attributes - competitive strength and market positioning
In 2018, the sales segment dominated the Armenia real estate market, in terms of revenue, accounting for approximately 43% share of the market, followed by rental.
By property type, the land segment is the highest shareholder of the Armenia real estate market.
The report contains an exclusive company profile section, where leading 10 companies in the market are profiled. These profiles typically cover company overview, geographical presence, market dominance (in terms of revenue and volume sales), various strategies and recent developments.
The market value of the Armenia real estate market is $931.5 million in 2019.
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