Commercial Real Estate - Armenia

Armenia

The projected value of the Commercial Real Estate market market in Armenia is expected to reach US$25.57bn in 2024.
This growth is anticipated to continue with an annual growth rate of 7.93% from 2024 to 2029, resulting in a market volume of US$37.45bn by 2029.
It is worth noting that in global comparison, the United States is expected to generate the highest value in the Real Estate sector, with a projected value of US$25,280.0bn in 2024.
Armenia's commercial real estate market is experiencing a surge in demand, fueled by increased foreign investment and a growing tech industry.

Key regions: Europe, France, Japan, Brazil, Asia

Market

Region

Region comparison

Currency

Analyst Opinion

The Commercial Real Estate market in Armenia has been experiencing significant growth and development in recent years.

Customer preferences: In Armenia, there is a strong demand for commercial real estate properties, particularly in the capital city of Yerevan. Business owners and investors are increasingly looking for office spaces, retail outlets, and industrial properties to expand their operations. This demand is driven by the country's growing economy and the increasing number of local and international businesses setting up operations in Armenia.

Trends in the market: One of the key trends in the Commercial Real Estate market in Armenia is the rise of mixed-use developments. Developers are increasingly combining residential, commercial, and retail spaces in a single project to cater to the diverse needs of consumers. These mixed-use developments offer convenience and a vibrant atmosphere, attracting both businesses and residents. Another trend in the market is the growing interest in sustainable and energy-efficient buildings. Developers are incorporating green building practices and technologies to reduce energy consumption and minimize the environmental impact of commercial real estate properties. This trend is driven by increasing awareness of environmental issues and the desire to create more sustainable and eco-friendly spaces.

Local special circumstances: Armenia's strategic location between Europe and Asia makes it an attractive destination for businesses looking to expand their operations and access new markets. The country's membership in the Eurasian Economic Union also provides businesses with access to a larger market and trade opportunities. These factors contribute to the demand for commercial real estate properties in Armenia, particularly in Yerevan.

Underlying macroeconomic factors: The Commercial Real Estate market in Armenia is also influenced by several underlying macroeconomic factors. The country has been experiencing steady economic growth, driven by sectors such as information technology, tourism, and agriculture. This growth has led to increased business activity and the need for more commercial spaces. Furthermore, the government of Armenia has implemented various reforms to improve the business environment and attract foreign investment. These reforms include simplifying the procedures for starting a business, reducing bureaucracy, and improving the legal framework for property rights. These measures have boosted investor confidence and contributed to the growth of the Commercial Real Estate market in Armenia. In conclusion, the Commercial Real Estate market in Armenia is developing rapidly due to customer preferences for commercial spaces, such as mixed-use developments and sustainable buildings. The country's strategic location, growing economy, and government reforms also play a significant role in attracting businesses and investors to the market. With these favorable conditions, the Commercial Real Estate market in Armenia is expected to continue its growth and offer new opportunities for investors and businesses alike.

Methodology

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.