Armenia Sustainable construction

Sector outlook

Construction was one of the most profitable sectors during the years 2001-2008 in Armenia, and accounted for around 25% of the country's GDP (2008). Most of the construction industry was oriented towards an elite market, while fewer products were designed for the median or low budgets. After a strong decline caused by the financial crisis in 2009, signs of recovery are noticeable.


Strategic direction/ specific schemes and incentives

The main priorities of the government in this sector are to:

  • Improve the housing conditions;
  • Introduce energy saving technologies: 40% of the national energy saving potential is in the building sector;
  • Create an incentive legal framework: approximation of the EU legislation is underway.

UNDP/GEF 2010-2015 project on energy efficiency in buildings: development of a new regulation (energy efficiency building codes and certification scheme), trainings and capacity building, stimulation of the manufacturing of new energy efficiency materials and equipments.


Business opportunities

Investment opportunities in the construction industry:

  • Residential housing in Yerevan, surrounding prestige locations and resort;
  • Development of the middle class markets: a growing demand;
  • Construction materials: mainly stones (tuf, basalts, marble, etc.). Example of investment opportunity: Onix (Armenia) is looking for a partner to develop a continuous basalt fiber and basalt composite materials project. Estimated FDI: USD 3.5 to 10 million, for a production volume of 500 to 1600 ton/year.

Development of energy-saving construction techniques:

  • Sustainable design;
  • Thermal insulation: consumption can be decreased by up to 30%;
  • Municipal heating and hot water supply (condominiums);
  • Efficient lighting, modern, efficient windows, etc.


Some success stories

Litokol (Italy) is a large company manufacturing high performance building products such as cement-based adhesives, cement-based grouts, synthetic resin-based paste adhesives and a line of additives and primers. In 2009, the company established a local affiliate in Yerevan, Litokol Armenia, with an automated plant for hybrid pre-mixed products for the production of cement-based adhesives and sealants and of gypsum-based plasters.

Useful links and contacts

Armenian CCI

Armenian Development Agency (ADA)

SME Development National Center of Armenia

This publication has been produced with the financial assistance of the European Union. The contents of this publication are the sole responsibility of EUROCHAMBRES and can in no way be taken to reflect the views of the European Union.

© 2011 East Invest Support Office
Tel. +32 (0)2 282 08 50 | Fax +32 (0)2 230 00 38