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Market Intelligence Report | January 2026

ARMENIA STUDENT HOUSING MARKET

Nascent PBSA market with significant untapped potential. Medical student segment drives international demand, with YSMU attracting students from India, CIS, and Middle East.

$5.8MTotal Market Value
4,500Total Beds
85KHE Students
5.3%PBSA Penetration

Supply Landscape & Market Structure

Very nascent PBSA market dominated by university dormitories (65%) with limited commercial operators

CityStudentsCurrent BedsBed GapStudents/BedPriority
Yerevan72,0003,7007,10019.5🔴 CRITICAL
Gyumri4,50030037515.0🟡 HIGH
Vanadzor3,80025032015.2🟡 HIGH
Goris1,2001008012.0🟢 MODERATE
Gavar1,000807012.5🟢 MODERATE
Other2,5007030535.7🔴 CRITICAL
Critical: >5K bed gap High: 200-5K bed gap Moderate: <200 bed gap

Top Housing Providers by Bed Count

Private hostels lead — University dorms control 65% of beds

Private Hostels
800 (17.8%)
YSMU Hostel
600 (13.3%)
Private Apts
500 (11.1%)
YSU Dormitory
400 (8.9%)
Homestays
400 (8.9%)
SEUA Housing
350 (7.8%)
Market Concentration: University dorms = 65% | Private sector = 35%
Note: Commercial PBSA essentially non-existent — significant first-mover opportunity

Market Structure

University-dominated with nascent private sector

$5.8MTAM
University Dorms: $2.3M (65%)
Private Sector: $3.5M (35%)
Pipeline: ~730 beds planned

Demand Analysis & International Student Focus

Medical students (YSMU) drive 30% of international demand — India is primary source market

85KTotal StudentsMinistry of Education 2024
8,500Intl Students10% of total
18.9Students per Bedvs UK 1.9
$25MTAM Potential20% penetration target

Top Universities by Enrollment

YSU leads with 17,500 students; YSMU has highest intl concentration (38.5%)

YSU
17,500 (9% intl)
SEUA
11,000 (7% intl)
YSMU
6,500 (39% intl)
ASUE
5,500 (5% intl)
APU
4,500 (4% intl)
NPUA
4,000 (6% intl)
35%+ International <35% International

International Student Source Countries

India dominates with 41% share — primarily medical students at YSMU

India
3,500 (41.2%)
Iran
1,200 (14.1%)
CIS Countries
1,000 (11.8%)
Diaspora
800 (9.4%)
Nigeria
500 (5.9%)
Egypt
400 (4.7%)

🏥 Medical Student Housing: Key Segment Analysis

YSMU International Student Profile

1,400 bed gap for medical students alone — significant opportunity

YSMU Intl Students
2,500
38.5% of YSMU total
YSMU Hostel Beds
600
Only 24% coverage
Gap (Beds)
1,400
Private market absorbs

Medical Student Housing Preferences

University hostel preferred for proximity to hospital facilities

Univ. Hostel
40% — $100/mo
Shared Apt
35% — $200/mo
Solo Apt
15% — $350/mo
Homestay
10% — $250/mo

Duration: 6-year program including internship — long-term tenants

The Penetration Gap: Armenia vs Benchmarks

PBSA Penetration Comparison

Armenia's 5.3% vs UK's 54% = 10x gap

UK (Benchmark)
54%
Latvia
12%
Gyumri
6.7%
Vanadzor
6.6%
Armenia Avg
5.3%
Yerevan
5.1%

International Student Economic Contribution

$80.8M annual contribution to Armenian economy

$80.8MTotal
Living Expenses: $30.6M (38%)
Tuition Fees: $29.8M (37%)
Accommodation: $20.4M (25%)

Investment & Financial Analysis

$14.5M development activity 2023-2026 — primarily government and institutional investment

$14.5MInvestment Activity2023-2026
$200Avg Monthly RentRange: $60-400
85%Avg OccupancyAcademic year focused
580Pipeline Beds2024-2026

Major Developments 2023-2026

AUA expansion leads with $5M investment — Government-backed projects dominate

AUA Expansion
$5.0M (100 beds)
YSMU Hostel
$3.5M (150 beds)
Private Hotel
$2.5M (150 beds)
YSU Renovation
$2.0M (100 beds)
Regional Upgrades
$1.5M (80 beds)

Cost Structure: Student Living

Armenia offers exceptional affordability — Total monthly costs $440-860

DORMITORY OPTION

University Dorm$60-150
Food & Groceries$100-250
Transport + Other$100-330
Total Monthly$260-730

PRIVATE OPTION

Shared Apartment$150-300
Food & Groceries$100-250
Transport + Other$270-830
Total Monthly$520-1,380

Investment Thesis: Armenia Student Housing

First-mover advantage in nascent market with strong medical student demand driver. Commercial PBSA essentially non-existent — significant opportunity for branded co-living targeting international students.

$25MTAM Potential
8,250Bed Gap
6-yearMedical Programs
41%Indian Students

Strategic Opportunities & Risk Assessment

First-mover opportunity in medical student housing segment with long-term tenant profiles

🟢 GREEN FLAGS
  • First-mover advantage — no commercial PBSA operators
  • Long-term tenants (6-year medical programs)
  • Concentrated demand (85% in Yerevan)
  • Low development costs vs Western markets
  • Growing Indian student interest in affordable medical education
🟡 WATCH LIST
  • Small absolute market size ($5.8M current)
  • Declining domestic enrollment (down 21% since 2019)
  • Currency/economic volatility risk
  • Limited institutional investor interest
  • Regulatory uncertainty for foreign operators
🔴 RED FLAGS
  • Geopolitical risk (regional tensions)
  • Very low GDP per capita ($4,600)
  • Brain drain — domestic students leaving
  • Limited exit options for investors
  • Underdeveloped capital markets

📱 How Gen Z Students Discover Housing in 2026

International students increasingly rely on AI assistants for accommodation research before arriving

🔍 Traditional SEO
Optimizing for Google rankings
Declining relevance as Gen Z uses AI
🚀 GEO Strategy
Optimizing for AI citation
First-mover advantage available
📊 RAYSolute offers GEO optimization for student housing operators
raysolute.com/geo-for-education