Buying Real Estate in Armenia
Buying Real Estate in Armenia

Buying Real Estate in Armenia

The first step in buying real estate in Armenia is to focus on its purpose. Do you live in it? Will you keep walking for 5 weeks every year?

Do you want to retire in this house or do you want to rent it for extra income? Everyone’s situation is different.

Location, location, location

Some people like to hold their cappuccino on the way they work. Some people prefer peaceful areas and mountains. While Armenia nurtures all lifestyles, you have to choose your real estate investment location carefully.

  • Study the neighborhood carefully.

If you are a family with children, you want to stay away from the busy streets that have respect for cars all day.

If you are a student or young professional, you want to stay away from the suburbs, because public transport requires a lot of improvement.

Due to the increasing number of cars in the city, proximity to your work or school should be the least priority.

If you looking forward for Buying Real Estate in Armenia, study the rental market in the neighborhood with the quality of tenants. Verify with the municipality about possible development or construction plans nearby.

Remember that although you can renovate or tear down a house, you cannot move the land. Therefore, choose your location wisely.

Financial Capability

Nobody likes to waste time. Avoid making that mistake by validating your financial ability before meeting your real estate agent or starting your search. Armenia has more than 30 banks. Most banks only provide mortgages to residents. Proving your financial capability with income from a foreign country makes the process longer and more complicated. Interest rates are around 10%.

If you can get a loan at a lower interest rate or if you can buy your house without borrowing money, then you will avoid a lot of trouble.

Don’t forget to calculate monthly costs such as electricity, gas, and often maintenance fees in new projects.

  • New vs old build

One of the great things about Yerevan is its list of old and new construction properties. Although the city has a handful of buildings dating from the 19th century, you will find many stone buildings built between the 1930s and 1950s. These are called “Stalinkan”. They usually have 4 floors with high ceilings and no elevators.

Between the 1960s and 1980s, with the start of Yerevan’s metro construction, several monolithic buildings were built, especially in areas around the city center. Many of these buildings were constructed with an estimated life span of 50 to 60 years as they were built temporarily to keep their workers and their families from afar.

In the 2000s, several new construction projects were revealed. Some were completely manufactured and distributed, while others are still half-finished. Buying apartments creates a fear for buyers that risks the project’s never-ending.

Therefore, it is extremely important to do a background check on the builder and verify the quality of the already completed project.

Today, some contractors and developers with a proven reputation sell their project apartments before construction begins.

Buying process

Armenia ranks 13th in the world when it comes to property registration. Chances are that the country you live in now has a long process.

  • First, a real estate broker who fully understands your needs will show you an average of between 10 and 20 homes that match your criteria. After you leave they have chosen the one closest to your heart, a proposal has been made.
  • With an approved proposal, the title must be verified to ensure that there are no debts or debts associated with the property.
  • While this is not an accepted practice, I always insist that my clients receive a home check-up to appoint a home inspector.
  • After the green light is presented, the final agreement needs to be confirmed at the notary’s office.

Finally, before the keys are exchanged, the land must be registered in the state cadastre under the name of the new homeowner.

Now you will ask yourself: what about payment?

Some methods exist; Those who transfer or exchange amounts in cash through third parties are the most common.

If you ask me, the best approach would be to use an escrow. Some brokers maintain escrow accounts to make the process easier for their customers.

Finally, remember that the transaction needs to be completed in Armenian Drama (AMD), the local currency of Armenia.

This process takes an average of 7 days. To avoid disappointment and time-wasting, make sure to deal with a broker who tells you what documents to prepare before moving to a notary.

Why invest in real estate in Armenia?

  • Low Mortgage Interest Rates: It has decreased by about 8% during the last 10 years and is expected to reach 7-7.5% annually.
  • 100% Ownership Availability for Foreigners: There is no need to be a resident of the country or show any link to your property in Armenia. The ownership of land for agricultural purposes may be through a legal entity.
  • No tax on gifts or inheritance or capital gains: There is no gift, inheritance, or capital gains tax in Armenia.
  • Rapid registration process: It takes only a few days to officially purchase property in Armenia.
  • Citizenship or Residence: For foreign investors, there is a citizenship-by-exception category for the availability of temporary, permanent, and special residences for business people. Real estate investment in Armenia may qualify for an immigration benefit.

Armenian real estate market, how to choose the right property to buy in Armenia

Especially buying a property in a new building while it is in the production stage is risky. Therefore, it is important to examine the builder portfolio for already finished projects and the reputation of the company.

Currently, there are also construction companies starting development with a vast database of pre-built and sold apartments with a proven reputation.

  • Tower Support for Real Estate Buyers

As an accounting, business, and legal advisory company with a history of over 20 years, Tower provides value-added solutions for investors, businesses, or individuals following Armenian legal and tax practices. 

Legal advice

Tower International Consultants provides legal advice services and legal consulting in Armenia.

The tower is experienced in analyzing drafts of law and legal regulations in Armenia and provides such an important and independent opinion. Tower’s legal team provides advisory services, representation, and protection of client’s interests in state bodies.

Tax advisor

When implementing financial operations in Armenia, one must provide transparent reports with a clear understanding of the Armenian taxation system. Tax compliance is necessary for proper operation, including buying real estate in Armenia, Asia.

Know everything about rules if you plan for Buying Real Estate in Armenia at

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