YEREVAN — Apartment transactions in Yerevan nearly doubled in July, while apartment prices in the city center rose 12.7% year-over-year, according to the World Bank’s Armenia Monthly Economic Update: September 2026.
The report said the accelerating growth of the real estate market was driven by increased demand stemming from a new influx of Russians and members of the Armenian diaspora.
Construction and non-trade services remained the main drivers of economic growth, expanding by 26.5% and 17%, respectively, in July. Overall economic activity growth, however, slowed from 7.4% in June to 6.5% in July. From the beginning of the year through July, economic activity increased by 7.7%.
Hakob Baghdasaryan, president of the real estate company Akcern Holding, told CivilNet in an interview last month that the initial impact of an influx of Russians is typically felt in the rental market, followed by an effect on apartment sale prices.
“When the rental market becomes more active and rents increase, that puts upward pressure on the prices of properties under construction or being offered for sale,” Baghdasaryan said.
According to Baghdasaryan, a significant number of those who relocated to Armenia in 2022 initially rented apartments, but some are now purchasing homes.
He attributed the shift to the prolonged Russia-Ukraine war and concerns over the security of savings held in Russia.
