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Residential Real Estate Leases - Armenia

Armenia

Armenia's Residential Real Estate Leases market market is expected to witness significant growth in the coming years.
By the year 2024, the revenue of this market segment is projected to reach US$753.10m.
Among the various types of leases, House Leases dominate the market with a projected market volume of US$613.70m in 2024.
Looking ahead, the market is expected to grow at an annual growth rate (CAGR 2024-2029) of 8.38%.
As a result, the market volume is forecasted to reach US$1,126.00m by 2029.
Armenia's residential real estate lease market is witnessing a surge in demand due to increasing urbanization and a growing middle class.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in Armenia is experiencing significant growth and development due to several key factors.

Customer preferences: Armenian customers are increasingly opting for residential real estate leases due to a variety of reasons. One of the main reasons is the flexibility that leasing offers compared to buying a property. Leasing allows customers to have a place to live without the long-term commitment and financial burden of purchasing a property. Additionally, leasing provides the opportunity to live in a desired location without the need for a large down payment or mortgage.

Trends in the market: One of the major trends in the residential real estate leases market in Armenia is the increasing demand for rental properties in urban areas. As the population in cities continues to grow, there is a higher demand for housing, leading to an increase in rental prices. This trend is driven by factors such as urbanization, migration to cities for better job opportunities, and the desire for a more convenient and modern lifestyle. Another trend in the market is the rise of co-living spaces and shared housing. This trend is particularly popular among young professionals and students who are looking for affordable housing options and the opportunity to live with like-minded individuals. Co-living spaces offer shared amenities and a sense of community, which appeals to this demographic.

Local special circumstances: One of the unique aspects of the residential real estate leases market in Armenia is the influence of the diaspora. Many Armenians who live abroad invest in residential properties in Armenia and lease them out to generate income. This has led to an increase in the supply of rental properties and has contributed to the growth of the market. Additionally, the government has implemented policies to attract foreign investors, which has further stimulated the real estate market in the country.

Underlying macroeconomic factors: The development of the residential real estate leases market in Armenia is also influenced by macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income and improved living standards. This has resulted in a higher demand for housing and, consequently, an increase in residential real estate leases. Furthermore, low interest rates and favorable lending conditions have made it easier for individuals to invest in residential properties and lease them out. In conclusion, the residential real estate leases market in Armenia is developing due to customer preferences for flexibility and the desire for a convenient lifestyle. The increasing demand for rental properties in urban areas, the rise of co-living spaces, and the influence of the diaspora are all contributing to the growth of the market. Additionally, macroeconomic factors such as economic growth and favorable lending conditions are fueling the development of the market.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.