Presales from developers
in 1Q24 total apartments sales directly by developers decreased slightly by 2.7% y/y, partially reflecting decreased housing stock. In the Tbilisi real estate market, Georgian citizens drive demand, making up 85% of total sales. Citizens of Russia and Israel follow, each with 4% of total sales. Finally, based on the analysis of housing stock, the market demand remains robust. Nearly half of the projects that started in 2023-24 have already been completely sold out. Additionally, only 18% of the apartments in projects finishing this year are currently available for sale.
Number of transactions
In Mar-24, the number of sold apartments in Tbilisi stood at 2,991 units, down 13.0% y/y and 13.2% m/m. Decrease in transactions was recorded both, on primary and secondary markets (-5.2% and -18.7% y/y, respectively).
Prices
In Mar-24, real estate prices on the primary market continued to grow (+0.4% m/m and +15.1% y/y). Similarly, the prices increased on the secondary market as well (+3.9% and +2.7% m/m, on new and old projects, respectively).
Market size
In Mar-24, the total market value of apartments sold in Tbilisi stood at US$ 229.4mn, down by 8.4% y/y. Cumulatively in 1Q24, Tbilisi real estate market size is up by 2.5% y/y to US$ 717.4mn, while number of sold apartments is down by 2.4% y/y to 9,506 units.
Rent
In Mar-24, price for renting an average apartment (50-60 m2) in Tbilisi stood at US$ 9.9 per m2 (-0.2% m/m). Downward trajectory has been occurring since Dec-23, bringing rents to healthier levels and yields at 10.3%.
Construction permits
In 1Q24, 44 new permits were issued for residential projects, with the total living area of 364,591 m2 (-13.5% y/y). 21% of total permitted living area was in Saburtalo, followed by Didi Dighomi (17%) and Didube (16%).
