Will apartments eventually get cheaper or not?

The number of real estate transactions has decreased. What is it connected with and what to expect in the future? If we try to present the reasons in a formal way, all those external and internal driving forces that have revitalized the real estate market in recent years have weakened. Let’s look at the statistics.

In the first quarter of 2025, the total number of real estate transactions fell by 6.2%. Meanwhile, compared to the last three months of last year, the drop is 18.2%. It should be noted that when examining the individual types of transactions, it becomes clear that rental housing has seen the sharpest decline. This is primarily due to an external factor: relocations from Russia to Armenia, which had generated significant demand for rental apartments. Now that this factor has diminished or disappeared, rental transactions have also declined.

So will apartments eventually get cheaper or not? A question that evokes contradictory impressions. To answer it, it is necessary to take into account the peculiarities of the real estate market. First, the market retains inertia: both developers and sellers of secondary housing are reluctant to lower prices immediately after a prolonged period of high demand. As a result, announced and statistical prices may remain high for some time. However, when negotiating with the same developer, it is possible to get a lower price.

Another trend has emerged: developers are increasingly offering more favorable purchasing terms. Of course, this is not a direct reduction in price, but an improvement in the terms of the deal. In any case, if demand continues to decline—unless unexpected positive shocks occur—a drop in real estate prices appears inevitable.