How to Buy an Apartment in Armenia: With or Without a Mortgage?

Buying an apartment in Armenia is a major decision — especially when the budget is limited and the market is constantly changing.

Today, buyers have several options:

1. save money on their own,
2. take out a mortgage from a bank,
3. use an installment plan from a developer,
4. or apply for a subsidy under one of the current government programs.

Each path has its own advantages, risks, and pitfalls.

If you're wondering how to buy an apartment in Armenia without overpaying on interest, or unsure what’s more beneficial — a new build or a resale, with or without a mortgage — this article will help you navigate the options.

We’ll compare different scenarios, outline the mortgage programs available in Armenia in 2025, explain how income tax refunds work, and show where to find great property deals in Yerevan and other cities.

Everything is laid out clearly, with examples, numbers, and comparison tables.

If you're planning to buy an apartment in Yerevan or anywhere in Armenia, don’t miss this guide — it will save you time, money, and stress.

Ways to Buy an Apartment in Armenia: Which to Choose?

For some, buying a home is a long-term goal years in the making. For others, it’s a problem that needs to be solved right now.

Which approach is right for you?

There are several paths to owning property in Armenia, and each comes with its own pros and cons.

Let’s take a closer look at the main options.

Buying with Your Own Funds

If you prefer a calm and debt-free approach and want to avoid loan interest and obligations, then saving up may be your best bet.

Pros:

1. No overpayments or interest charges
2. The apartment is fully yours from day one
3. No need to undergo bank checks or deal with mortgage paperwork

Cons:

1. Requires a long time to save up
2. Risk of reduced purchasing power due to inflation
3. Property prices may rise before you’re able to buy, making it harder to “catch up with the market”

Example:

A typical apartment in Yerevan costs AMD 20–30 million.

If you save AMD 300,000 per month, it would take 6–8 years to accumulate the full amount — and that’s not accounting for rising prices during that period.

This option works best for those who already have substantial savings — 50–75% of the property’s value today.

In this case, the remaining amount can be saved over a few years, and the apartment can be purchased outright with no loans.

Installment Plans from Developers

Since 2022, Armenia — especially Yerevan — has seen a boom in residential construction, with new projects ranging from economy to business class.

Some developers are willing to work directly with buyers and offer installment plans — without involving banks, interest charges, or credit checks.

Pros:

1. No bank interest
2. Often no down payment required
3. You can move in as soon as the building is completed

Cons:

1. Installment terms are limited (usually 12–36 months)
2. Monthly payments are often significantly higher than with a mortgage
3. Property ownership is registered only after full payment
4. The total price with installments may be higher than paying 100% upfront

Developer Installment Plans: A Mortgage Alternative

If you prefer not to deal with banks or don’t meet mortgage criteria, buying an apartment on an installment plan directly from the developer can be a smart alternative.

This is especially relevant during the construction phase, when developers are eager to attract buyers and offer competitive terms.

Here are a few developers in Armenia offering installment options:

1. RED Invest Group
2. Offers 0% interest installment plans through the end of construction, allowing staged payments without additional costs.
3. Shushi Palace
4. Provides installment plans with a 30% down payment, no interest charged.
5. A solid choice for buyers who want to avoid bank involvement.
6. Metrum Invest
7. Offers projects like Tsaghkadzor Park and Eden Park with installments: from 25% down payment, up to 12 months interest-free.

This approach helps avoid the financial burden of a mortgage, eliminates interest overpayments, and often gives you more flexibility when negotiating with the developer.

If you're interested in private houses, check out our article on how to buy a house in Armenia.

Bank Mortgage

A mortgage remains the most common way to purchase real estate in Armenia thanks to flexible conditions and government support.

Pros:

1. You can buy an apartment right away
2. Locks in the current property price
3. Monthly payments can start from AMD 90,000 for longer terms
4. Access to government-subsidized programs and tax benefits

Cons:

1. Overpayment on interest (depends on term and rate)
2. Harder to sell the apartment before the loan is fully repaid
3. Requires official proof of income
4. Long-term commitment (typically 10–20 years)

Important:

A mortgage is not just a loan — it’s a financial strategy.

You lock in the value of property and money today and repay it with your future income.

Want to learn how to save millions on a mortgage?

Read our in-depth guide on smart mortgage planning.

What Government Programs Are Available?

If you're working with a limited budget, be sure to check if you're eligible for one of Armenia’s current government programs.

There are five highly beneficial options that significantly reduce interest rates and help save millions of AMD.

Government Programs for Apartment Purchases in Armenia

All these programs are explained in detail throughout this article.

Which Apartment to Choose: New Build or Resale?

Before choosing a property, it's important to determine whether you plan to participate in a government support program.

This will influence your available options:

1. Some programs apply only to new developments
2. Others work only with resale properties
3. A few allow both, but offer different interest rates for each option

The type of real estate isn't just about looks — it affects documentation, move-in timelines, legal risks, and eligibility for subsidies.

Let’s break down the pros and cons of each.

New Builds:

1. Eligible for most government programs
2. Modern layouts and new engineering systems
3. Fewer risks with documentation (if the developer is reliable)
4. Often available at lower prices during the construction phase

Resale Properties:

1. Not all programs apply, but some subsidies are available (e.g., for military personnel)
2. Immediate move-in after purchase
3. Established infrastructure and known neighbors
4. Higher legal risks: must carefully verify ownership history and layout changes

How to Properly Arrange a Mortgage Purchase

If you've decided to take out a mortgage — great. Now it’s important to follow a step-by-step process to avoid delays and extra paperwork.

1. Assess Your Financial Capabilities

1. Ideally, your mortgage payment should not exceed 30% of your household income
2. Don’t forget additional costs: notary fees, property valuation, state duties

2. Choose a Bank and a Program

1. Compare interest rates, income requirements, and minimum down payments
2. Many banks offer mortgages at 7–13%, while government-subsidized rates range from 0 to 5.5%

3. Prepare Your Documents

Typically required:

1. Passport
2. Proof of income
3. Employment confirmation
4. Work certificate

Some banks offer “2-document” mortgage approval, but usually with higher interest rates

4. Get Pre-Approval and Choose an Apartment

1. Once pre-approved, you usually have 90–180 days to select a property

You can find a mortgage that matches your budget and conditions in the “Mortgage” section of AFM.

What to Pay Attention to When Buying an Apartment

Real estate purchase is not just exciting — it’s also a major responsibility.

You must check all documents and minimize legal risks.

1. Review all property ownership documents (especially for resale purchases)
2. Check for any encumbrances or shared ownership
3. Verify that the floor plan matches the official technical passport (BTI)
4. If you have doubts — order a legal review or title insurance

Frequently Asked Questions (FAQ)

To clear up any remaining doubts, here are answers to the most common questions people ask when planning to buy property in Armenia.

Can I buy an apartment without a down payment?

Yes. Some government programs — for example, for displaced families or border region residents — do not require an initial payment.

Is the income tax refund program still active in 2025?

As of 2025, new mortgage contracts no longer qualify for income tax refunds.

However, if your construction began before the end of 2022, you can still receive the refund.

Can I get a mortgage without a credit history?

Yes, many banks in Armenia approve mortgages even without a credit history, especially for applicants enrolled in government programs.

Where to find more affordable housing in Yerevan?

Here’s a quick breakdown by popular districts:

Conclusion: How to Make a Smart Decision?

In Armenia, buyers have access to flexible tools: mortgages, installment plans, government support, and self-funded savings.

To choose the right path, you should consider not only your income, but also your goals, timeline, property type, and willingness to take on long-term commitments.

If you have a stable income and some initial capital, a government-subsidized mortgage allows you to move into a new home immediately and lock in today’s prices — protecting you from inflation.

This is especially true if you qualify for programs for young families, military personnel, or displaced persons: interest rates can drop to zero, and the government may cover part of your costs.

If you prefer to avoid debt, consider developer installment plans or saving on your own.

However, these options require either strict financial discipline or the ability to handle larger monthly payments.

It’s also important to understand that choosing between a new build and a resale affects your move-in timeline, risk level, and potential renovation costs.

And different districts of Yerevan or regions of Armenia offer varying levels of comfort and price — all of which impact your overall gain.

The key takeaway from this guide:

In 2025, you can buy an apartment in Armenia with minimal overpayment — if you choose the right program, bank, and strategy.

Compare, calculate, and always check which benefits you qualify for right now.

Don’t wait too long — the market moves fast, and real estate is an investment in your peace of mind and your future.