Demand on residential market shows further increase

According to Colliers International Georgia analyses, Georgian Real Estate market has experienced growing trend during the rst 5 months of 2017, based on NAPR data. Demand for residential real estate is still growing.

Currently in Georgia 580 ( 9% growth*) new residential projects are under development, comprising 33 575 (14% growth ) apartments ( including presale and available for sale), with total residential space of 3.47 mln (16% growth ).

During the rst 5 months of 2017 (from January to May) 9,609 apartments were sold, showing 17% growth compared to the same period of the previous year. Total volume of transac- tions incrased by 13% compared to the same timeframe of 2016 and reached USD 332 mln. Among total transactions, the volume of newly-built residential properties amounted to USD 193 mln, 17% growth compared to the same period of the previous year. As a result, share of newly developed resi- dential apartment sales grew by 4% and reached 52% (5,010 apartments).

Insigni cant changes took place in Tbilisi districts: highest de- mand is held by Saburtalo district, with 27% share out of total transactions (5,844 apartments). Followed by Samgori and Gldani districts (2,711 and 2,240 apartments). Based on this information, compared to the same period of the previous year, growth rate was 40% , 15% and 10%, respectively.

The three lowest performing districts (by number of transac- tions) remained the same: Mtatsminda (730 units), Krtsanisi (699 units), and Chughureti (626 units). As for May 2017, average selling price for newly-built residential apartments dropped by 4% and amounted to USD 618 per m2. Average selling price of old apartments declined insigni cantly by 1% (USD 587 per m2).

The highest average selling price of new ats in TBS was reported in Mtatsminda (USD 975), Vake (USD 805) and Saburtalo (USD 674). In opposite, lowest gures occurred in Samgoni (USD 521), Gldani (USD 502) and Didi Digomi (USD 477) districts. 

* compared to the same period of the previous year 

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