Armenia could become a key market for digital residential management in South Caucasus – CEO Unitify

YEREVAN, March 31. /ARKA/. Against the backdrop of active housing construction and rising service quality demands in Armenia, the topic of digital management of residential complexes is becoming increasingly relevant. Unitify, an international PropTech company developing solutions for management companies, developers, and residents, views the Armenian market as a potential area for further expansion. The platform integrates applications, payments, resident communications, analytics, and AI tools into a single system and is already operating in other markets in the region.

In an interview with ARKA news agency, Unitify CEO Ilia Sotonin, co-author of the book "Developer and Management Company" and a specialist with 15 years of experience in real estate management, discussed why Armenia is becoming an attractive candidate for such solutions, the extent to which local developers and management companies are ready for digitalization, the most pressing operational challenges in building management today, and the role AI can already play in this area. Sotonin, whose IT solutions are used by 4,000 management companies worldwide, also discussed the company's experience in Georgia and Uzbekistan and explained which metrics will be key for Unitify's launch in Armenia.

ARKA - Why is Unitify considering entering the Armenian market now, and what, in your opinion, makes the country an attractive location for such solutions?

I. Sotonin - We consistently enter markets with a clear growth stance: active development, a growing middle class, and demand for quality service. That's how we entered Georgia, Uzbekistan, and now Armenia.

In Armenia, several factors coincided: new construction, an audience that knows what they want and doesn't remain silent if something isn't working. Digitalization takes hold most quickly in places where pressure from residents is high. Arriving in Yerevan, you're greeted by billboards advertising residential complexes at the airport, and active construction is underway throughout the city. You look around and realize that life is in full swing here.

ARKA - How prepared, in your opinion, are Armenian developers and management companies for digitalization?

I. Sotonin - Developers are open, especially those who already think of a building not just as a construction and sale, but as a long-term product with a reputation. Among Armenian developers, we see players who are already embedding a service model into their concept. A striking example of this approach is the construction of a luxury residential area in Yerevan, built around the idea of ​​community and quality of life. Such projects require high-quality operational capabilities—and that's our client.

The picture among management companies is still uneven: many continue to work in Excel, communicating with residents through multiple channels simultaneously, and as a result, processes are driven by specific individuals rather than by the system. We've observed the same in all our markets. This isn't an Armenian peculiarity; it's a universal growth point.

ARKA - What two or three operational problems in residential complex management in Armenia do you consider the most pressing, and which of them can Unitify solve the fastest?

I. Sotonin - The first and foremost problem is that residents don't understand what they're paying for. They receive a bill, the amount is there, but there's no breakdown or explanation. This destroys residents' trust faster than any breakdown in the system. Unitify helps quickly issue clear bills: every line item is justified, every payment is transparent.

Another problem is the lack of a unified system of knowledge among all team members about what's happening in the buildings. Dispatchers, technicians, accountants, and managers each have their own tasks, and coordination between employees and contractors often devolves into daily chaos. In turn, we provide the entire management team with a single operating system where all relevant information is available, a single data source instead of a bunch of disparate tools.

Thirdly, there's the problem of communication between residents and the management company. Very often, interactions with residents aren't systematic: an ad goes up, but some residents don't see it. An application is submitted, but the status is unknown. This isn't a people problem, it's a tool problem. Unitify solves this.

ARKA - You place a great deal of emphasis on transparency and clear communication with residents. Why is this critical for managing modern residential complexes, and what is currently lacking in this regard in markets like Armenia?

I. Sotonin - Conflicts in housing and utilities almost always begin not with the breakdown or problem itself, but with uncertainty. But if residents can see the status, know the contractor, and the deadline for resolving the issue, the tension is relieved even before calling the management company. In markets like Armenia, what's most often lacking is systemic, predictable communication: not goodwill (there's plenty of that), but a working tool.

ARKA - Which AI functions in residential building management do you consider practically applicable today—in billing, communication with residents, application processing, and analytics? Which of these are you realistically prepared to launch in Armenia in the near future?

I. Sotonin - We have two AI products in production. The AI ​​Concierge is an omnichannel bot that accepts requests from residents via chat, voice, and messaging. It classifies the problem, routes it to the appropriate specialist, and tracks its status. The second product, the AI ​​Finance Manager, automates accruals and reconciliations, identifies payment anomalies, and manages debtors.

A specific example from practice: previously, a management company could be profitable starting with 250,000–300,000 square meters. With AI tools, this threshold is reduced to 50,000–100,000. This fundamentally changes the economics of the industry—small management companies have the opportunity to earn money, not just survive.

All this works not instead of the team, but alongside it. The technology frees people from routine tasks so they can focus on what truly matters to residents. We are ready to launch both tools for Armenia in the initial phase.

ARKA - Which digital features do you think will be most in demand in the Armenian market initially: basic services for residents, tools for management companies, or more complex smart building solutions? Why?

I. Sotonin - The database solves everything: applications, notifications, clear payments, a unified system for the team. Smart building sounds attractive and modern, but if the entrance hall isn't properly cleaned, a smart intercom won't help. First, you need to clean up the operating system, then fine-tune the add-ons, otherwise you'll end up with a beautiful storefront with chaos inside.

ARKA - Unitify is already present in Georgia. What conclusions have you drawn from the Batumi market: who makes such decisions faster—developers, management companies, or the residential complexes themselves? What of this experience is applicable to Armenia, and what isn't?

I. Sotonin - I can give the example of Georgia. The modern residential complex Ande Tower in Batumi, where a digital management model was implemented from the very first day of operation. The developer had attended our residential building management training for developers before the project was launched, and we agreed on a pilot launch in a new country. As Pavel Makarov, CEO of the management company, stated, the company was striving to move away from disparate communication channels and manual processes in favor of a unified system. Unitify became the core platform, unifying key processes in a single interface for both the management team and residents.

In general, negotiations with management companies in Georgia proceed in different ways. Some are immediately open to collaboration, especially where the developer has explicitly defined a service standard as part of the product. Others take a wait-and-see approach. The best approach is to remove skepticism and show a real-world example. When the team sees how a request from a messenger is automatically entered into the system, assigned a status, and distributed to contractors, everything becomes clear.

The main conclusion: the best cases are those where the developer considered maintenance even before the building was completed. This is directly applicable to Armenia.

ARKA - Negotiations regarding the integration of Unitify into the building management system of an Armenian developer are in the final stages. What will be your key indicator of a successful launch in Armenia: the number of connected properties, the quality of the service, resident engagement, time savings for management companies, or other metrics?

I. Sotonin - The key metric is resident engagement. Not the number of connected properties, not revenue, but the percentage of residents who actually use the system. Connecting a building is a technical task that takes a couple of days. But getting residents to open the app every month, see their charges, submit applications, and vote—that's a measure of real value. If residents are engaged, everything else will follow: it's easier for the management company, payment collection increases, and the number of conflicts decreases.

ARKA - Which client are you primarily targeting in Armenia: the developer at the launch stage, the management company, or an already occupied residential complex? Why do you think this particular market entry is the most realistic?

I. Sotonin-We focus on the developer at the launch stage of a new project. They have a motivation: they've invested heavily in construction and want to sell their apartments at a high price. A digital management service is a selling point. We've seen this in various countries: when a developer can show a buyer that their building has an app with a personal account, an AI concierge, and transparent charges, it drives sales.

The most important thing for a building's residents begins after the developer has left. The management company remains, and its performance determines whether the resident will recommend the developer to their friends. In other words, the quality of management is a developer's marketing asset for future projects.

ARKA-What could hinder the implementation of such solutions in Armenia the most: market conservatism, the lack of digital processes among management companies, the cost of implementation, the complexity of integration, or the lack of local partners?

I. Sotonin- It's not the price. $0.50-$1.50 per apartment per month isn't the amount that's holding back a decision, nor is it the technology—we integrate quickly.

The main obstacle is the argument that "everything works for us anyway." This isn't conservatism in a bad sense. People simply don't realize that things could be different. I saw an example like this in New York City, in a building near Central Park. The management company says: residents provide receipts, they don't need to pay in the app, and the notices are printed out on A4 paper, posted on the door, and everyone reads them.

Resistance is more often rooted in habit than malicious intent. Until the management company sees how it works in the building next door, it's difficult for them to make a decision. This is why the first pilot project is so important: it becomes a showcase for the entire market.

ARKA - Looking at the next two to three years, how do you see Armenia's place on Unitify's development map: as a pilot market, as a growth point in the South Caucasus, or as a fully-fledged area for scaling?

I. Sotonin- I wouldn't narrow the scope. Armenia is a compact market with good potential. If the first project shows results, scaling within the country can be rapid. Plus, Armenia is a natural hub for the region: its proximity to Georgia, a familiar cultural context, and a tech-savvy population.

Yerevan today is a strong tech ecosystem, a dynamic city with a new generation of globally minded developers. Armenia knows how to build quickly and think long-term—a rare combination.

A realistic scenario is that Armenia becomes a key market in the South Caucasus, from where it's easier to expand. But everything depends on the first project. We don't build strategies on PowerPoint—we build them on real launches.