Rent Prices for Apartments in Yerevan Have Decreased
Apartment rental prices in Yerevan have dropped. According to experts, there has been a 30% decrease in rental rates.
The main reason for this trend is that foreigners now prefer renting homes on a daily basis rather than staying in hotels or finding monthly rental accommodations. After an unprecedented increase in rent prices in 2022, they began to visibly decrease from mid-2023, continuing into 2024.
The decline in prices has been further supported by an increase in the number of rental properties available in the cities surrounding Yerevan. Experts believe that this trend will continue in the coming years. Andranik Harutyunov, CEO of Silver REA Real Estate and a member of the Board of the Armenian Association of Real Estate Agencies, states that the decrease in prices is more of a market stabilization rather than a continual decline.
He explains that currently, rental offers in the range of 120,000-200,000 dram are quickly consumed, considering the income levels of the population. Real estate agent Ashot Amirkhanyan adds that while there is a significant supply of properties, the demand remains low. This is partly due to many renters purchasing apartments using income tax refunds or taking steps toward doing so. According to him, there may be an increase in market activity during peak tourist seasons.
The State Revenue Committee informs that individuals renting out real estate are required to pay a 10% income tax on rental income.
If the total rental payments exceed 60 million drams in a tax year, an additional 10% income tax must be paid on the excess amount. Furthermore, a contract must be signed and registered with the state, or a tax declaration about the rental agreement must be submitted.
Failure to comply with these requirements may result in a fine. It will be 5% of the market value of the property, up to a maximum of 500,000 drams.