The construction industry, along with related sectors, accounts for over 21% of Armenia's GDP and emerged as a key driver of the country's economic growth in 2023. However, rising tariffs and administrative barriers threaten the sector's further development, said Gurgen Grigoryan, Head of the Armenian Builders’ Association, during a press briefing on December 10.
According to the association, construction alone contributes 15.2% of the GDP, with the figure rising to 21–22% when including ancillary industries. "Our sector acts as the locomotive of economic growth, and maintaining this momentum requires the adoption of innovative tools," Grigoryan emphasized.
He highlighted several critical issues plaguing the industry: connection fees for utilities have increased dramatically, government and municipal approval processes are significantly delayed, and regulatory frameworks are constantly changing. "Regulatory instability negatively impacts the sector's investment appeal," he noted.
Grigoryan expressed particular concern about the rising costs of construction, driven by both global material prices and higher local fees.
For example, the permit fee for constructing a 14-story building in the Arabkir district of Yerevan can reach 50–60 million drams (approximately $125,000–$150,000). Under such conditions, Grigoryan does not foresee a decrease in real estate prices: "Significant price reductions are unlikely, as construction costs will continue to rise."
