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.

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.

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.

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

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.

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.

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

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.

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

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

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%.

Despite the fact that the market drastically increased in 2021, it still is not massive. A few 10 thousand people are active in virtual real estate, however, after Facebook launches Meta for masses, the popularity of 3D world will increase, which will logically widen the segment of people interested in virtual real estate.