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March 2022 | Residential

Residential

In March 2022, the growing trend in demand for residential flats continued, with one of the highest weighted average prices compared to recent years.

Residential

The number of transactions amounted to 3,713 units, reflecting 20% YoY growth. Market size increased by 36% standing at USD 180 mln. In January and February 2022, there was a 36% and 15% growth in the number of transactions compared to the same period in 2021.

Residential

The number of transactions in new projects increased by 24%, while the figure for old flats grew by 13%.

Residential

The number of transactions of newly-built medium flats doubled, while about 2.5 fold increase was observed in the premium segment.

Residential

The weighted average price of newly-built flats has increased by 8% in the suburbs of Tbilisi, while in the city center and inner city the figure grew by 6% and 8%.

2021 | Sectoral Insights

Residential

In 2021, the average selling price of newly-built flats in Tbilisi city centre* stands at USD 939 per sq m, in the inner city – USD 742 per sq m, in the suburbs – USD 578 per sq m.

Residential

In the last decade, the price of newly built apartments in the suburbs is characterized by an increasing trend, reflecting an 11% growth in 2021 when compared to 2012.

Residential

In the last 10 years, the weighted average selling price of old flats in the city centre has not changed significantly.,

Residential

In 2021, The market size of residential flats in the suburbs has more than tripled compared to 2012. In the inner city as well as in the city centre the figure has doubled.

Residential

In 2021 a substantial upward trend is observable in rates, which should be attributed to the increased prices of construction materials, growing demand in the economy segment, as well as rising costs related to the regulatory changes.

Residential

The prices of residential apartments are expected to continue to rise in the short term, which will be further affected by the effects of the Russia-Ukraine war.

Residential

According to the issued construction permits, in the following years (2022-2025) the structure of supply might change in favour of the suburbs of Tbilisi, while the share of the city centre in the future supply will decrease.

Office

In parallel with the hybrid workflow, demand for office space has not diminished. In 2021, there was an unprecedented take-up (24 thousand square meters), exceeding the highest rate in 2018.

Office

The overall weighted average rent in Tbilisi modern business centres amounted to USD 14.8 per sq m, maintaining stability compared to 2019.

Office

The overall vacancy rate stands at 21%, implying a considerable increase in comparison with the pre-pandemic period.

Office

During the Covid-19 pandemic, the occupancy rate of Tbilisi co-working spaces stood at 61%. In line with the increased capacity resulting from the opening of new spaces, the same occupancy rate was maintained in 2021.

Retail

Along with the recovery of economic activity and tourism inflow, the occupancy and turnover rates of the Tbilisi retail sector were restored.

Retail

High streets turned out to be exposed to the pandemic, in terms of increased occupancy rates and slightly decreased weighted average rents. However, Pekini avenue appeared to be most resistant achieving USD 32.1 per sq m and occupancy at 6%.

Retail

2021 was a quite challenging year for shopping centres. Despite the increased vacancy in several shopping centres, the overall rate remained stable due to considerably decreased vacancy at City Mall Saburtalo. As for the rental rates, a decrease is observable in particular shopping centres, however, due to exceptional cases, the overall picture has not changed significantly.

* City Centre – Vake, Mtatsminda, Saburtalo

** Inner City – Isani, Chughureti, Didube, Bagebi, Krtsanisi

*** Suburbs – Gldani, Samgori, Didi Dighomi, Nadzaladevi, Didgori, Tskneti, Ponichala