In recent years, prices in the real estate market have been increasing
The president of the Armenian Developers Association, Gurgen Grigoryan, mentioned in an interview with journalists that in the Arabkir administrative district, the local fee for one 14-story building could be 50-60 million dram.
Gurgen Grigoryan also addressed the issue of income tax refund for mortgage loans, noting that they had previously presented their forecast to the government, predicting that developers would not carry out construction projects in remote regions, and as a result, the actual boundaries of Yerevan would expand.
Grigoryan also responded to the question of whether investing in the regions is profitable in this sector, to which the association president replied:
The sale prices in the regions are not that much lower because the main construction materials, the labor market, and other products are concentrated in Yerevan, additionally, there are costs related to transportation from Yerevan, water issues, and electricity payments, all of which affect the cost price. In other words, the cost price doesn’t differ much between Yerevan and the regions.
The president of the association added that in recent years, prices in the real estate market have been continuously rising because the construction cost in development projects is increasing.
The most expensive apartments have been in the Central administrative district of Yerevan, with prices ranging from 560,000 dram (1,400 USD) to 2.78 million dram (7,200 USD) per square meter, in Arabkir, prices ranged from 480,000 dram (1,200 USD) to 1.1 million dram (2,800 USD), and in Davtashen, from 420,000 to 750,000 dram (1,100 to 1,900 USD).
The construction of private houses has increased in recent years. According to statistics from January to August, construction funded by the population has increased by 70.2% compared to the same period last year, reaching 82.5 billion dram.
Since 2020, there has been significant growth in construction. In 2020, construction worth 432.6 billion dram was carried out, while in 2023, it increased by 43.2%, or 187.1 billion dram.