Apartment prices in Yerevan in the context of European capitals

Introduction

It’s common to hear the claim that “apartment prices in Yerevan are higher than in major cities of large European countries.” This widespread belief is often neither justified nor realistic. To approach the issue fairly and comprehensively, it’s essential to compare not just with European cities in general, but specifically with capital cities—since capitals are more comparable in terms of economic activity, demand, and price levels.

(Yerevan’s data is sourced from the RA Cadastre Committee, while data on European capitals is taken from the Global Property Guide analytical platform.)

Reasons Behind the Widespread Belief in “Expensive Yerevan”

1. Lack of context and international comparison
   People often assess prices in isolation, without comparing them to income levels or actual purchasing power in other countries. For example, a 60 m² apartment in central Yerevan costs $175,000, which seems expensive given the average salary of $746. However, few compare this to the fact that in Paris, with an average salary of $4,000, the same-sized apartment starts at $628,800.
2. Sharp price increases in recent years
   Between 2018 and 2023, apartment prices in Yerevan nearly doubled, especially in the Kentron, Arabkir, and Davtashen districts. This has led to a public perception of “unfairly high prices.”
3. Psychological factors
   When young people are unable to purchase an apartment for years, it creates the myth: “If it’s inaccessible here, then we must be worse off than everyone else.”
4. Income–price disparity
   This is the key issue: Yerevan has some of the highest real estate prices in the region, while offering some of the lowest wages among comparable markets. This creates the impression that “apartments are very expensive.”

What’s Happening with Real Estate Prices in Europe?

In European capitals, real estate prices range from $1,750 to $59,000 per square meter.

Let’s present the main capitals ranked by apartment price per square meter (from highest to lowest):

• Monaco – $59,000
• Luxembourg – $12,500
• France, Paris – $10,840
• United Kingdom, London – $10,570
• Norway, Oslo – $9,985
• Netherlands, Amsterdam – $9,494
• Sweden, Stockholm – $8,886
• Austria, Vienna – $8,756
• Ireland, Dublin – $8,435
• Armenia, Yerevan – $2,916
• Moldova, Chișinău – $1,750

From this list, we can conclude that Monaco has the most expensive apartments in Europe, while Chișinău has the cheapest. If we position Yerevan within this ranking, it takes the 10th spot out of 11, surpassing only Chișinău.

Let’s Also Calculate the Housing Affordability Index

We divide the average price per square meter by the average monthly salary in each city. This index shows how affordable housing is for someone earning an average income. A higher index value means real estate is relatively less affordable in that city.

(Data sources: Euronews, National Bureau of Statistics of the Republic of Moldova, IMSEE, Eurostat)

It becomes clear from the data that real estate is least affordable in Monaco, where purchasing 1 square meter of an apartment requires, on average, more than 11 months of salary. In Yerevan, the index stands at 3.9, meaning that buying 1 sqm requires nearly 4 months of average income. In terms of this index, Yerevan is closer to London and Paris than to Chișinău, yet it significantly lags behind in income levels—highlighting the relatively low housing affordability in Armenia. This may also point to an artificially high price level for apartments compared to the population’s purchasing power.

What Should Be Understood When Comparing Yerevan and European Capitals

It’s easy to draw quick conclusions from surface-level numbers, but real estate prices are shaped by numerous factors, including:

• The country’s gross domestic product (GDP)
• Average income levels
• Economic activity
• Housing demand (market scarcity)
• Cost of construction materials and labor
• Tax policy and mortgage accessibility

In other words, the same price per square meter can carry different weight in different countries. In Paris, a price of $10,840/sqm aligns with the purchasing power of an average-income resident. In Yerevan, even a price of $2,500/sqm is often unaffordable for citizens in a mid-level socio-economic position, given the average wages.

So Where Does Yerevan Stand in This Context?

Yerevan holds a middle position in this list—being significantly more affordable than many European capitals (such as London, Vienna, Stockholm), but still ahead of Moldova’s Chișinău. However, this does not mean that “Yerevan is more expensive.” Yes, some figures may be higher than in one or two countries, but it’s incorrect to generalize based on a single example. Chișinău is an exception and should be viewed as a distinct economic environment. Moreover, the income-to-price ratio in Armenia (i.e., real estate prices relative to wages) remains much higher than in developed European countries. So while the difficulty of purchasing a home in Armenia is real, it doesn’t mean prices are objectively higher—just relatively less affordable.

Conclusion

The belief that “everything is more expensive in Yerevan—even compared to Europe” is exaggerated and lacks analytical grounding. For a fair comparison, one must consider not only prices but also income levels, credit accessibility, and other macroeconomic factors.

In terms of pricing, Yerevan is not the most expensive city, but rather one that has seen regional growth and now occupies a mid-range or affordable position within the European market.

And of course, to substantiate such claims, one must account for all the factors that define property value and pricing. For the most objective and fair analysis, it’s essential to avoid incomparable examples—meaning, compare city centers with city centers, and suburbs with suburbs.