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Residential

1.
Apartment Transactions in Tbilisi by weeks, 2021, 2020, 2019
2019
Before crisis
Recovery
2021

2.

Updated: June 15, 2021

In May 2021, 2,161 transactions were registered in Tbilisi, that is 25% less than the same period in 2019. As for the market size, the figure stands at USD 101 million, reflecting a 29% decrease compared to 2019. It should be noted that in 2020, the emergency situation was over since May 23. Therefore, the data of 2020 is not representative.

Transactions Distribution of New Apartments by Segments in Tbilisi, May 2021 vs. 2020 vs. 2019
Transactions
Market Size

3.

Updated: June 15, 2021

In May 2021, 1,380 transactions were registered in new projects, that is 30% less than the same period in 2019. While the number of transactions registered on old flats has decreased by 17% compared to 2019.

Apartment Transactions Distribution by Types in Tbilisi, May 2021 vs. 2020 vs. 2019
New Flats
Old Flats

4.

Updated: June 15, 2021

In May 2021, the market size of new flats has decreased by 37% when compared to 2019. As for the old flats, the figure stands at USD 35 million, decreasing by 10%.

Apartment Transactions Market Size by Types in Tbilisi (USD, million), May 2021 vs. 2020 vs. 2019
New Flats
Old Flats

5.

Updated: June 15, 2021

In May 2021, the number of transactions recorded on economy new apartments saw 12% decrease compared to 2019. As for the medium segment the number of transactions has fallen by 61%. The decline should be attributed to the massive absorption in M2 Hippodrome project in May 2019. Almost 40% of transactions was registered in this project. Excluding these transactions, the number of transaction would decrease by 32%. The figure in premium segment has decreased by 35% when compared to 2019.

Transactions Distribution of New Apartments by Segments in Tbilisi, May 2021 vs. 2020 vs. 2019
Apr-19
Apr-20
Apr-21

6.

Updated: April 15, 2021

In the first quarter (Q1) of 2021, 7,738 transactions were registered in Tbilisi, that is 4% and 6% lower than the same period in 2020 and in 2019. As for the market size, the figure stands at USD 343 million, reflecting a 2% and 4% decrease compared to 2020 and 2019

Apartment Transactions and Market Size (USD, mln) in Tbilisi, March Q1 2021 vs. Q1 2020 vs. Q1 2019
Transactions
Market Size

7.

Updated: April 15, 2021

In Q1 2021, 5,300 transactions were registered in new projects, that is 7% and 13% higher than the same period of 2020 and 2019. While the number of transactions registered on old flats has decreased by 3% compared to 2020 and by 6% compared to 2019.

Apartment Transactions Distribution by Types in Tbilisi, Q1 2021 vs. Q1 2020 vs. Q1 2019
New Flats
Old Flats

8.

Updated: April 15, 2021

In the first quarter of 2021, the market size of new flats has increased by 4% when compared to the previous year and by 7% compared to 2019. As for the old flats, the figure stands at USD 100 million, decreasing by 3% compared to Q1 2020.

Apartment Transactions Market Size by Types in Tbilisi (USD, million), Q1 2021 vs. Q1 2020 vs. Q1 2019
New Flats
Old Flats

9.

Updated: April 15, 2021

The number of transactions recorded on economy new apartments saw 13% and 19% increase compared to Q1 2020 and Q1 2019. As for the medium segment the number of transactions has decreased by 10% compared to Q1 2020 and has decreased by 11% compared to Q1 2019. On the other hand, the figure for premium segment has decreased by 30% compared to Q1 2020 and by 9% compared to Q1 2019.

Transactions Distribution of New Apartments by Segments in Tbilisi, Q1 2021 vs. Q1 2020 vs. Q1 2019
Q1 2019
Q1 2020
Q1 2021

10.

Updated: April 15, 2021

The weighted average price is not characterized with any significant fluctuations. The WAP for new flats has decreased by only 2% comparing to Q1 2020 and by 1% comparing to Q1 2019. On the other hand, the WAP has slightly increased for old flats. The figure has grown by 2% when compared to Q1 2020 and by 4% in contrast with Q1 2019.

The Weighted Average Price by Types in Tbilisi, Q1 2021 vs. Q1 2020 vs. Q1 2019
New Flats
Old Flats

11.

As long as lockdown measures are in place, it is hard to comment on the market response in terms of residential pricing. While the new-built market shows signs of a price reduction, secondary market pricing is still on hold.

A decrease in selling prices could put developers that offer internal installment plans at risk. Particularly in cases when only a small portion of a contract amount is paid, buyers will feel reluctant to continue their payments for already devalued properties. Based on initial consultations with developers, installment payments have diminished significantly during the lockdown period. In order to regain trust, it is vital for developers to demonstrate an uninterrupted construction process. Banks will have an important role to play in ensuring flawless funding for committed-to projects.

12.

In the short-term, it is highly likely that the number of transactions will drop, especially in touristic areas such as: Batumi, Bakuriani and Gudauri. Approx. 11,500 transactions were recorded in Batumi in 2019, most of which were investment properties. Similarly, property transactions in Gudauri and Bakuriani have predominantly investment purposes.

13.

The market for investment / rental apartments will face challenges. Significant price reductions are expected for both rental and sale property. On the other hand, this reduction may inspire a new wave of speculative investors who are active during the crisis period.

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.