How to Invest in Armenia: From Bank Deposits to Bonds and Real Estate

Keeping money in a bank account or in cash usually does not preserve the purchasing power of capital due to inflation. Over time, money loses its value. If you want your savings to generate income, it’s worth considering investments.

Investing is a strategy of allocating assets that helps protect your money from inflation while providing stable long-term returns.

In Armenia, just like in other countries, people are looking for ways to grow and multiply their capital: some prefer bank deposits, others invest in securities or cryptocurrency, and many choose real estate. Let’s take a closer look at what investments are and what opportunities already exist in Armenia — and which ones are emerging in the near future.

What are investments in simple terms?

Investments mean directing money into areas where it can generate returns. Examples include:

1. A bank deposit, where you receive interest income;
2. Bonds, which provide fixed income (a coupon payment);
3. Stocks, which give you ownership in a company and sometimes dividends;
4. Real estate, which may increase in value and generate rental income;
5. Gold and other assets that can be sold at a profit later.

The core idea of investing is simple: money should bring more money. But it’s important to remember the balance: the higher the potential return, the greater the associated risk.

In Armenia, banks do not sell shares directly to individuals. To buy and sell stocks on the exchange, you need to open an account with a broker. Sometimes brokerage services are offered by the banks themselves, but through a separate legal entity — a subsidiary company or an investment department licensed by the Central Bank.

In simple words:

1. You can open a savings account or deposit directly at a bank.
2. But if you want to buy stocks or other securities, the bank will refer you to its subsidiary or a partner brokerage firm.

Why is it relevant to invest in Armenia now?

1. Stable dram and declining deposit rates

During several waves of economic turbulence, the Armenian dram has shown resilience. The Central Bank has kept inflation within reasonable limits, and there have been no sharp currency fluctuations in recent years.

At the same time, interest rates on deposits are gradually declining. If previously dram deposits could generate double-digit returns, today the average bank rate is 6–9% per year. Considering inflation, the benefit of such investments is shrinking, which makes keeping all savings in deposits less effective.

2. Rising Real Estate Prices and Rental Demand

Over the past three years, housing prices in Yerevan and other major cities have increased significantly. At the same time, the rental market remains stable due to the influx of IT specialists, migrants, students, and the growing popularity of short-term rentals through Airbnb and Booking.

For investors, this creates two potential income sources:

1. Rental income – on average 5–8% annually in foreign currency for long-term rentals, and up to 12% for short-term rentals;
2. Capital appreciation – the potential increase in property value if you sell an apartment in a few years.

However, property prices in Yerevan have already risen considerably, so a sharp increase in the near future is unlikely. In addition, landlords must account for expenses such as vacant periods without tenants, repairs, furniture, taxes, and utility payments (especially in the case of daily or short-term rentals).

For more details on where and how to buy an apartment or a house in Armenia, check out AFM.

3. Development of the Bond Market and Tax Benefits

The Armenian government is actively developing the bond market. Today, on the Armenia Stock Exchange (AMX), you can buy both government and corporate bonds.

1. Government bonds offer returns of 7–11% annually in AMD, and for residents, coupon income is exempt from income tax. This makes them more effective than deposits.
2. Corporate bonds provide yields 1–3% higher than government bonds and allow you to diversify your portfolio, but they carry higher risk and are subject to taxation.

Popular Ways to Invest in Armenia

1. Bank Products: Deposits and Deposit Certificates

A deposit is the simplest and safest investment tool.

1. Returns: up to 9% annually in AMD, and 5–6% in foreign currency.
2. Pros: minimal risk, government guarantee of deposits (up to 16 million AMD in local currency and up to 7 million AMD in foreign currency).
3. Cons: returns often do not fully offset inflation, and interest income is subject to a 10% income tax.

A deposit certificate is similar to a savings account, but funds cannot be withdrawn until maturity. In exchange, banks usually offer a slightly higher rate.

Tip: Start with a deposit – it’s a safe tool that helps you understand how interest accrual works.

Example

You place 1,000,000 AMD at 8% annual interest.

1. The bank accrues 80,000 AMD in interest.
2. A 10% tax is automatically withheld (8,000 AMD).
3. Your account receives 72,000 AMD net, bringing your total capital to 1,072,000 AMD.

If you reinvest and leave the funds, the next interest accrual will apply to the new amount, and your income will start to grow thanks to compound interest.

2. Bonds: Stable Income with Moderate Risk

A bond is a security through which an investor lends money to the government or a company. The issuer pays coupon income, and at the end of the term returns the full amount (the principal).

Government bonds

1. Yield: 7–11% annually in AMD;
2. Coupon income for resident individuals is exempt from income tax;
3. Minimal risk: payments are guaranteed by the state, and yields are higher than deposits.

Corporate bonds

1. Yield: typically 1–3% higher than government bonds;
2. Higher risk, since payments depend on the company’s financial stability;
3. Coupon income is taxed at 10% for residents.

Tip: Start with government bonds via your bank’s brokerage service — it’s a safe way to gain your first investing experience.

Example

You purchase a government bond worth 1,000,000 AMD with a 9% annual yield for one year.

1. Coupon income: 90,000 AMD.
2. At maturity, you receive back the 1,000,000 AMD principal.

In practice, coupon payments are usually made semi-annually, but for simplicity they can be calculated evenly by month.

3. Stocks: Business Participation and Capital Growth

A stock is a security that represents your ownership in a company. Income may come in two forms:

1. Dividends – a share of the company’s profits;
2. Capital growth – if the company develops, stock prices rise.

Returns: depend on the market and the company; they can be high, but also negative.

1. Pros: potential for high profits, opportunity to invest in global companies.
2. Cons: high volatility, no guaranteed income.

Tip: Beginners should start with large, well-established companies (“blue chips”) or Exchange-Traded Funds (ETFs), which provide instant diversification. Keep in mind that stocks carry more risk than bonds.

What is an ETF?

An ETF (Exchange-Traded Fund) is an investment fund traded on the stock exchange that combines a whole “basket” of assets: stocks, bonds, gold, or other instruments. By purchasing a single ETF share, an investor gains access to a wide range of securities — meaning ready-made diversification.

Key features of ETFs:

1. Traded on the stock exchange just like regular stocks;
2. Allow investing in dozens or hundreds of assets at once;
3. Typically have lower fees compared to mutual funds;
4. Can track different indices (e.g., S&P 500), bonds, commodities, or specific sectors.

Simply put: ETFs are a convenient way to invest not in a single company, but in an entire market, reducing risks and simplifying portfolio management.

Where to Open a Brokerage Account in Armenia?

To invest via the Armenia Securities Exchange (AMX) — in stocks, bonds, or ETFs — you need a broker with access to the exchange. Some reliable options include:

1. Apricot Capital – local broker, offers remote account opening, low fees, and educational materials.
2. Dimension Investments – direct AMX member, provides brokerage services on local and international markets.
3. Freedom Broker Armenia (Freedom Holding) – part of an international group, provides access to global markets.

Many investors also use international platforms, such as Interactive Brokers, XTB, Capital.com, and Swissquote, to access foreign markets.

4. Real Estate: Income and Value Growth

Buying an apartment for rental purposes remains one of the most popular investment options in Armenia.

Example

A one-bedroom apartment in Yerevan in 2025 costs 19,500,000 AMD (≈ 50,000 USD).

Long-term rental

1. Average rent: 136,500 AMD (≈ 350 USD) per month;
2. With 11 months rented per year, income ≈ 1,501,500 AMD;
3. This equals about 7.7% annual yield relative to the property value;
4. Considering vacancies, taxes, and maintenance, the net yield drops to 6–7% annually.

Short-term rental (Airbnb, Booking)

1. Average nightly rate: 11,700 AMD (≈ 30 USD);
2. With 70% occupancy (≈ 21 nights per month), monthly income ≈ 245,700 AMD;
3. For 11 months, income ≈ 2,702,000 AMD;
4. The “gross” yield reaches up to 13.8% annually;
5. After deducting platform fees (10–15%), cleaning, utilities, and seasonal vacancies, the net yield is 10–12% annually.

Capital appreciation potential

Housing prices in Yerevan have increased significantly in recent years, and this trend may continue. However, growth rates will depend on the economy and demand, so a sharp price surge is unlikely in the near future.

Conclusion: Real estate can generate solid income, but it is crucial to factor in all expenses and vacancies to ensure accurate calculations.

5. Venture Funds and Startup Platforms

Armenia is actively developing its IT ecosystem, and private investors have access to several venture funds:

1. FAST Foundation – a science and technology foundation;
2. Granatus Ventures – the first venture capital fund in Armenia, supporting IT startups;
3. HIVE Ventures – a diaspora-backed fund investing in technology projects;
4. Hero House / SmartGateVC – an accelerator and VC fund working with early-stage startups.

Tip: For beginners, it’s better not to start with direct investments, but to attend startup events and pitch sessions first. Keep in mind: venture capital is a high-risk field where many projects fail, so you should allocate no more than 5–10% of your portfolio to it. Also, minimum investment thresholds are often too high for ordinary investors.

Where to Start Investing?

Today, investing in Armenia is accessible to everyone — whether you have 100,000 AMD or 10 million AMD.

1. Up to 1 million AMD – deposits and government bonds are the most rational choice;
2. From 5 million AMD – you can add corporate bonds and small real estate investments;
3. Larger capital – it’s worth diversifying the portfolio and including alternative instruments.

The key is to understand where you are investing and not to chase maximum returns at any cost.

Conclusion

Investing is a marathon, not a sprint. It does not deliver instant profits – its strength lies in the fact that your money works for you every day, while the main results are achieved over the long run. The earlier you start, the more time your capital has to grow through the power of compound interest.

Today, Armenia offers all the conditions to build a balanced portfolio even with a modest amount – from reliable deposits and government bonds to real estate and venture funds. The key is not to wait for the “perfect moment,” but to take the first step now.

It’s not the one who guesses the best instrument who wins, but the one who invests consistently and stays the course.

AFM tip: Start with a simple portfolio of 2–3 instruments, give your money time and discipline, and it will start working toward your financial freedom.

This material is not an investment recommendation. All decisions must be made by investors independently.