Residential Real Estate - Armenia

Armenia

The Residential Real Estate market market in Armenia is forecasted to reach a value of US$147.50bn in 2024.
This market segment is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 7.62%, leading to a market volume of US$212.90bn by 2029.
In comparison to other countries, China is projected to generate the highest value in the Real Estate market, with an estimated worth of US$112.9tn in 2024.
The residential real estate market in Armenia is experiencing a surge in demand due to increased foreign investment in the country's growing economy.

Key regions: Europe, Brazil, France, Asia, United States

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Analyst Opinion

The Residential Real Estate market in Armenia is developing at a steady pace, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Armenia, customers have shown a strong preference for residential properties that offer a combination of modern amenities and traditional architectural elements. Many buyers are looking for properties that are located in well-established neighborhoods with easy access to schools, hospitals, and other essential facilities. Additionally, there is a growing demand for properties with energy-efficient features and sustainable design elements.

Trends in the market: One notable trend in the Armenian residential real estate market is the increasing popularity of apartment living. As urbanization continues to accelerate, more people are opting for apartment complexes that offer a range of amenities such as gyms, swimming pools, and communal spaces. This trend is particularly prominent in the capital city of Yerevan, where high-rise apartment buildings are becoming a common sight. Another trend is the rising demand for luxury properties. Affluent buyers are looking for high-end residential units that offer premium features and services. This trend is driven by the growing number of high-net-worth individuals in Armenia and the desire to invest in prestigious properties.

Local special circumstances: Armenia's real estate market is also influenced by local special circumstances. One such circumstance is the presence of a large diaspora community. Many Armenians living abroad are interested in purchasing properties in their home country as a form of investment or for future retirement plans. This demand from the diaspora community contributes to the overall growth of the residential real estate market.

Underlying macroeconomic factors: Several macroeconomic factors contribute to the development of the residential real estate market in Armenia. One key factor is the country's economic growth and stability. As the Armenian economy continues to expand, with sectors such as IT and tourism experiencing significant growth, more people have the financial means to invest in residential properties. Additionally, low interest rates and favorable mortgage policies have made it easier for individuals to access financing for property purchases. This has further stimulated demand in the residential real estate market. In conclusion, the residential real estate market in Armenia is experiencing steady growth due to customer preferences for modern yet traditional properties, trends such as the popularity of apartment living and luxury properties, local special circumstances including the diaspora community, and underlying macroeconomic factors such as economic growth and favorable financing conditions. These factors combined create a favorable environment for the development of the residential real estate market in Armenia.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. 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.