ArmeniaPashinyan says Yerevan’s rising rents could help rejuvenate regions outside capitalby Ani Ghulinyan• 2 min readShare▲Prime Minister Nikol Pashinyan during the press briefing. Photo: Prime Minister's official websiteArmenian Prime Minister Nikol Pashinyan has acknowledged that rising rents and property prices in Yerevan are a social concern for the government. However, he also emphasised some positives, arguing that high prices could push some businesses out of the capital and make redeveloping old housing more attractive to investors. Pashinyan told his cabinet on Thursday that he regularly receives letters from citizens about the cost of renting apartments, leading him to discuss the issue with the government. He acknowledged the increase in property prices, citing one example in which an apartment in central Yerevan was sold for $8,000 per square metre: a significant rise from the maximum price of $5,500 in 2023 Separately, experts have noted that in 2026, rental prices in some parts of Yerevan increased between 20% and 70%. Pashinyan did not announce any specific measures to address these increased costs, but argued that despite the social issues, prices in the city centre in particular could lead some businesses to relocate in order to cut costs. ‘The people who complain about rents are, understandably, those who came from the regions to Yerevan to find a job. If this process means that some workplaces move to the regions, it could be an opportunity for them to return and live in their homes there’, he said. Pashinyan also mentioned that high prices make Armenia’s housing renovation programme ‘realistic’, as demolishing old buildings and constructing new ones could become profitable for investors. Armenia’s housing is of bad quality, with apartments facing problems that include leaking and unsafe roofs, nonfunctioning elevators, lack of proper insulation, neglected common areas, and other structural problems. Most buildings constructed during the Soviet era do not meet modern requirements for thermal protection, requiring renovation for energy efficiency. In 2015 Armenia experienced a construction boom in the capital after the government introduced an income tax refund programme. Under the programme, income tax was deducted from taxpayers’ monthly paycheque and redirected towards major life expenses — which could include mortgage interest. After 2025, the programme stopped being valid in Yerevan, but is still in place outside of the capital. Housing costs in Yerevan have risen significantly in recent years, a trend that has been linked to Russia’s full-scale invasion of Ukraine in 2022 and subsequent mobilisation. In the autumn of 2026, rents increased again, which some attribute to fears of mobilisation in Russia following the elections. Ani is an Armenian journalist with a background in multimedia reporting, podcast production and documentary filmmaking. She has a Master´s degree in Media Studies and is interested in stories about migration and post-conflict transformation. Outside of work, she enjoys film festivals, cycling, photography, and baking.