Buying Armenia Property: Asia’s Most Obscure Market?

Buying Armenia Property Asia’s Most Obscure Market

Last updated March 29th, 2024.

Oftentimes, the countries where you normally wouldn’t think of investing are the best ones to purchase in. The Armenia real estate market certainly qualifies as overlooked.

This small, landlocked nation that bridges Asia and Europe probably isn’t the first place you’d think about when buying offshore property.

Yet a combination of low housing costs and strong growth, along with a recent political shift, bodes well for Armenia’s economic prospects as a whole.

It helps that property values in the capital city of Yerevan are just about $2,000 per square meter. Granting, that’s after rising from about $1,000 per square meter several years ago.

That’s considered near a global “floor”, giving the implication that home prices in Armenia have few places left to go besides upwards.

We have plenty of reasons why you should invest in Armenia’s housing market besides the simple fact that values here are cheap though.

Let’s discover more about this unusual property market located at the crossroads of Asia. We’ll cover the cost of buying a house in Armenia, your options as a foreign buyer, along with the risks of owning property here.


Armenia Real Estate: Risk and Potential

Nothing is certain – but Armenians living both in the country and outside seem generally positive when asked about their nation’s future prospects.

Armenia’s currency, the Dram, is also showing remarkable resilience.

The Armenian Dram is one of the rare currencies which have risen against the US Dollar, having appreciated by about 40% during the past few years.

Part of that is due to Armenia’s massive diaspora, many who are returning to their homeland following recent positive sentiment regarding the country’s future. This is noticeably increasing the demand for Armenia’s local currency.

Three million people live in Armenia. However, an estimated 11 million Armenians live outside the country – especially in Russia and the United States.

Migration from Russia is certainly a factor that is helping drive demand as well. In fact, Yerevan’s population rose by several hundred thousand inhabitants in the span of a few short months folllowing the Russia-Ukraine war.

Likewise, Armenia has made constant improvement towards fighting corruption, which is surely one of Armenia’s greatest obstacle towards economic development.

Rankings including the Ease of Doing Business Index and Corruption Perceptions Index consistently score Armenia as among the lowest in the region.



A five year chart of the Armenian Dram compared to the US Dollar. Note the Dram’s steady increase since the beginning of 2021.

Armenia Property Prices: Nowhere Left Except Up?

Our global economy is more interconnected than ever. Property values in a major city can only reach a certain “bottom” until foreign investors load up on assets.

How much does real estate in Armenia cost? As of 2024, you can find housing for sale in Yerevan’s centrally located Mashtots district for under US$2,000 per square meter.

Homes in Armenia don’t cost much at all compared to elsewhere in the region. In fact, such values are practically unheard of in any capital city.

The number of capital cities where property prices remain at US$2,000 per sqm are so few that you could count them on both hands. One of them is Cambodia.

Another is Armenia’s neighbor, Georgia, which is becoming increasingly difficult to invest in as a foreigner.

Most of the remaining countries where the cost of homeownership are below $2,000 per square meter are in far less developed nations like Pakistan and Bangladesh.

Armenia is, quite frankly, a much nicer place to live by comparison. You’d probably rather live in Yerevan than Dhaka.

In summary: Yerevan is the economic, cultural, and political center of Armenia. We think that, because of various factors stated further above, the cost of homes in Armenia will will almost surely rise from their current level.

But Armenia Has Problems Too

Nowhere is perfect and all investments have their own risk. Investing in Armenia certainly isn’t any different.

Therefore, despite its solid potential overall, Armenia has its own problems that are worth mentioning. Most of these issues would fall under the category of geopolitical risk.

Quite frankly, Armenia is surrounded by enemies. On the eastern border, Azerbaijan and Armenia are technically still at war over the Nagorno-Karabakh region.

Armenia is a landlocked country as well. Lack of access to the ocean gives any nation a huge disadvantage in terms of trade, cutting it off from sea routes which limits Armenia’s potential to ever become a major exporter.

Nonetheless, the economy is heading in the right direction. There’s room for property values to increase from here.

Real estate in Armenia should all see attractive long-term gains, provided the nation’s geopolitical issues don’t deteriorate.



How Much Do Houses in Armenia Cost?

You should expect to pay about $2,000 per square meter for a house or apartment in Yerevan's central areas. Further out into Yerevan's suburbs, prices are closer to $1,000 per square meter.

Of course, if you're looking at rural property and land in Armenia, the cost of real estate can be lower.

Can Foreigners Buy Property in Armenia?

Foreigners can own apartments in Armenia on a freehold basis, but only local citizens can directly own land under their own name.

However, companies in Armenia don't face any restrictions on their operations based on their owner's nationality. It's therefore possible to start a business as a foreigner and buy real estate in Armenia through it.

Is Armenia Real Estate a Good Investment?

While property values in Armenia are cheap compared to elsewhere in the region, it's difficult to say whether they'll increase from here.

Keep in mind that geopolitical issues and war also loom over the region with Turkey, Iran, and Azerbaijan all on Armenia's doorstep.


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