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Residential

1.

Updated: March 16, 2021

In February 2021, 688 transactions were registered in Batumi, decreasing by 16% in contrast with the same figure of 2020.

As for the market size, the figure amounted to USD 26 million, reflecting also 16% drop compared to the same period of the previous year.

Apartment Transactions and Market Size (USD, million) in Batumi, February 2021 vs. 2020
Transactions
Market Size

2.

Updated: March 16, 2021

In February 2021, 608 transactions were registered in new projects, that is 14% lower than the same period of the previous year. As for the number of old flat transactions, the figure dropped by a massive 31%, amounting only 80 units.

Apartment Transactions Distribution by Types in Batumi, February 2021 vs. 2020
New Flats
Old Flats

3.

Updated: March 16, 2021

The market size of new flats saw a 10% decrease when compared to the previous year, amounting to USD 24 million.

As for the old flats, the figure fell almost twice in contrast with February 2020, standing at USD 3 million.

Apartment Transactions Market Size by Types in Batumi (USD, million), February 2021 vs. 2020
New flats
Old flats

4.

Updated: March 16, 2021

The number of transactions recorded on economy new apartments saw a 13% decrease, while medium category flats dropped by 30%, when compared to the same figure of 2020. On the other hand, premium segment new flats recorded an insignificant 10% increase.

Transactions Distribution of New Apartments by Segments in Batumi, February 2021 vs. 2020
Feb-20
Feb-2021

5.

Updated: June 4, 2020

We have divided the residential market into the following price segments: Economy, Medium, and Premium. We have further analyzed the base scenario with moderate isolation until the end of 2020.

The prices of economy segment residential properties are not expected to change significantly , while the number of transactions in this category is forecast to drop. We expect the demand on economy class single-family houses to soar in the isolation period.

The projections are negative for the medium segment residential market in terms of the number of transactions and prices. Speculative transactions are expected to increase in the medium market due to decreased prices.

The number of transactions is expected to drop in the premium segment, but we anticipate very little price change in this category. The market of rental properties will be most affected, as both, prices and the number of transactions are expected to drop by the end of the year.

Transaction and price change forecast in economy, medium and premium housing price segment

*Distressed Real Estate with potential to increase prices

Economy - Apartments < $800 per m². Private Houses - < $70,000

Medium - Apartments $800 - $1,200 per m²; Private Houses - $70,000 - $200,000

Premium - Apartments +$1,200 per m²; Private Houses: > $200,000

Source: Colliers

Expectations and opportunities

Stability of the banking sector and the uninterrupted financing of real estate projects are among the main factors in maintaining the residential property market.
Developers might consider making changes to installment schedules in order to maintain cash flow from existing contracts. It is also unlikely that an aggressive price drop by developers will result in an increase on the market in total.
In line with adapting to a distancing culture, demand for single-family houses is expected to increase. Demand for land plots suitable for single-family house development near Tbilisi, and in other regions of Georgia, is also expected to increase.
Given its adequate response to the pandemic, there is a chance for Georgia to position itself among the safe countries. This can encourage foreigners to acquire property in Georgia with the purpose of long-stay or relocation. An attractive segment to target could be the elderly European population (25% of total European population above 60) and freelancers from the CIS, CEE region, for whom location is not the decisive factor, but rather safety and new experiences.