Head of Central Bank admitted a decline in the investment attractiveness of real estate
26.05.2026,
11:18
The Armenian real estate market will see a relative stabilization of demand and a slowdown in price growth in 2025, stated Martin Galstyan, Chairman of the Central Bank of the Republic.
YEREVAN, May 26. /ARKA/. The Armenian real estate market will see a relative stabilization of demand and a slowdown in price growth in 2025, stated Martin Galstyan, Chairman of the Central Bank of the Republic.
"The price-to-rent ratio of residential real estate in the country has increased, which may lead to a decline in the investment attractiveness of real estate," he said yesterday, presenting the 2025 Financial Stability Report of Armenia.
Galstyan explained that the investment attractiveness of real estate is being impacted by the situation in recent years, when prices have shown slight growth amid declining rental rates.
At the same time, according to the head of the regulator, the high growth of lending to the construction industry in recent years and the continued increase in the area of residential buildings commissioned, while demand is gradually saturating, could create risks of oversupply and increased credit losses on construction loans.
According to Armstat, the volume of construction work in Armenia in the first quarter of 2026 amounted to 95,640.1 million drams at current prices, an increase of 22% compared to January-March 2025. In March 2026, 24,782 transactions were completed in the real estate market, compared to 19,345 transactions in March 2025.
"The price-to-rent ratio of residential real estate in the country has increased, which may lead to a decline in the investment attractiveness of real estate," he said yesterday, presenting the 2025 Financial Stability Report of Armenia.
Galstyan explained that the investment attractiveness of real estate is being impacted by the situation in recent years, when prices have shown slight growth amid declining rental rates.
At the same time, according to the head of the regulator, the high growth of lending to the construction industry in recent years and the continued increase in the area of residential buildings commissioned, while demand is gradually saturating, could create risks of oversupply and increased credit losses on construction loans.
According to Armstat, the volume of construction work in Armenia in the first quarter of 2026 amounted to 95,640.1 million drams at current prices, an increase of 22% compared to January-March 2025. In March 2026, 24,782 transactions were completed in the real estate market, compared to 19,345 transactions in March 2025.
