Real Estate Market Trends

New real estate market research results have been published on the back of regular market studies that have been jointly conducted by TBC Bank, ISET Policy Institute and JumpStart for the Real Estate Market Laboratory (REM Lab).

The research revealed a 27% growth in the number of transactions during the first quarter of 2018 compared to the same period last year. The total number of real estate sales was 27,495.

Once again, the growth of the national real estate market has been largely driven by the activity of the Tbilisi real estate market. Annual real estate sales in Tbilisi grew by 37.1% in the first quarter, at a time when real estate sales outside the capital increased by 21.0%. The first quarter has been particularly successful with regards to real estate sales for the regions of Racha-Lechkhumi and Lower Svaneti (annual growth rate of 105.0%), Guria (66.9%) and Kakheti (31.7%).

Amongst the districts of Tbilisi, the dominant positions on the real estate market have been retained by Vake, Saburtalo and Samgori. Saburtalo accounted for the largest number of real estate sales during the first quarter (2,924 units), followed by Vake (1,978 units) and Samgori (1,286 units).

The most expensive residential real estate in Tbilisi is found in the Mtatsminda district, while the cheapest is located in Samgori.

The research states that “compared to the previous quarter, the first quarter of 2018 saw an increase in both the real estate sales figure (5.1%) and the rental price figure (1.4%). The average sale price of real estate ranged between $ 860 and $ 906 per square metre during the period in question, while the average rental price was $ 6.7 to $ 7.7 per square metre. Mtatsminda retained its position as Tbilisi’s most expensive district both in terms of the average sale price ($ 1078/m2) and the average rental price ($ 8.71/m2) of residential real estate. The cheapest residential real estate is found in Samgori in terms of sales ($ 529/m2), and Gldani in terms of rental ($ 4.4/m2).”

Having seen a gradual decrease during the previous three quarters, the commercial real estate sale price figure rebounded in the first quarter of 2018 and grew by 12.2%, while the rental price figure continued to fall. The average sale price of commercial real estate ranged between $ 1,099 and $ 1,182 per square metre during the period in question, while the average rental price was between $ 8.7 and $ 9.6 per square metre.

A significant decrease has been recorded in the number of real estate transactions in Batumi (-11.0%) and Kutaisi (-6.1%) compared to the previous quarter. Against the background of a fall in the number of transactions, the residential real estate sale price figures increased in both cities, amounting to $ 772/m2 in Batumi and $ 391/m2 in Kutaisi.

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