Armenia has significantly changed the way state and community land is sold in 2026. Under a decision adopted in April, auctions for such plots must now be held only electronically through the State Property Management Committee’s official e-auctions.am platform.
The Ministry of Territorial Administration and Infrastructure has prepared methodological guidance for communities that sets out the procedure for electronic auctions, the roles of users in the unified system, and the functions of designated officials. Under the rules, auction notices must be published on the community’s official website, then posted on the public notices platform www.azdarar.am, and may also be distributed through other media outlets.
For movable property, an electronic auction may be held 15 days after public notice is given, while for real estate it cannot be held earlier than 45 days after the notice of sale. At the discretion of the community head, municipal staff may manage the entire process, from uploading the lot to the official auction site to summarizing the results.
Communities are already adapting the ministry’s guidance through their own decisions. In Abovyan, for example, the head of the municipality’s Department of Programs, Agriculture and Real Estate Management has been appointed as the official responsible for electronic auctions. Organizational duties were assigned to the department’s chief specialist and the deputy head of the Department of Financial-Economic and Revenue Accounting.
On July 31, the Abovyan municipality announced the sale of 5 land lots through an electronic auction. Bidding is due to start on September 24 and end on September 29. The winner will be determined by the system, and the winning participant must submit the system-generated auction results protocol to the organizer online within the set deadline.
Under the new rules, an auction is deemed not to have taken place or invalid only if no buyer participated. That means a single application is enough for an auction to proceed. The article says this approach may be linked to recent amendments to Article 67 of the Land Code, under which the starting sale price at auction is calculated on the basis of the plot’s assessed market value. At the same time, a community council or community head may set a starting price well above cadastral value if current market conditions justify it.
In Abovyan’s case, the land has been put up for sale at cadastral value. According to the municipality’s notice, that figure is already close to the plots’ current market value. The new methodology also changes the minimum bid increment. For a lot with a starting price of up to 100,000 drams, the minimum increase is 500 drams; from 100,001 to 500,000 drams, 1,000 drams; from 500,001 to 1,000,000 drams, 10,000 drams; from 1,000,001 to 10,000,000 drams, 50,000 drams; and above 10,000,000 drams, 1% of the starting price. If there are no competing bidders, a participant can purchase the property by adding only that minimum increment to the starting price.
The article also points to a problematic phrase in the guidance stating that a foreign citizen must submit passport copies and a translation. That could conflict with Article 60 of the Constitution of Armenia, which says foreign citizens and stateless persons do not enjoy land ownership rights except in cases prescribed by law. While the methodological guidance cannot override the Constitution, it is still expected to be drafted in line with existing legislation.
Direct land sales with installment payments and collateral
In July, at the government’s proposal, the rules for direct land sales were also amended. An addition to Article 66 of the Land Code now provides that community-owned land plots may be sold directly on installment terms in cases and under procedures defined by the community council. In such cases, from the moment the plot is transferred to the buyer, it is deemed pledged to the community until the full price is paid, and the community’s pledge right must be state-registered.
The amendments also expand the powers of community councils. In particular, Article 65 of the Land Code now allows community-owned plots to be granted free of charge for social, charitable or investment projects, including projects under the public-private partnership law. In such cases, donation agreements and council decisions must specify the purposes and conditions of land use.
In addition, a community-owned land plot or rights to it may be contributed, by council decision, to the charter or share capital of a legal entity, provided the value is not lower than the cadastral value. Direct sale contracts or PPP agreements must define the projects to be implemented, the amount and terms of investment, and liability for breaches of the sale conditions.
The changes also make it possible to grant state and community land for lease or development rights without a tender, if those cases are defined by the community council. The article argues that the government has effectively legalized an existing practice in which land leases often did not go through a competitive process and were largely arranged with the community head.
