Presales from developers
Based on survey results of selected developers, around 20% of the real estate projects that started in 2018-19 remain unsold, while almost 60% of the projects that began in 2020-21 are completely sold out. Notably, in the real estate market of Adjara during 2023-24, Georgian citizens accounted for 20% of total sales, while citizens from Russia and Israel comprised 24% and 6%, respectively. The remaining half of apartment sales involved a diverse range of countries.
Residential market in Adjara
In 1Q24, the total number of registered transactions in Batumi reached 3,371, indicating a 22.8% y/y and 5.3% q/q decrease. Notably, sales reduced on both - the primary and secondary markets (-23.3% y/y and -22.1% y/y, respectively), partly reflecting last year’s high base.
In 1Q24, prices of new projects (both primary and secondary markets) rose by 0.8% q/q. Notably, weighted average price of the old apartments declined to US$857/m2, marking a 8.1% q/q decrease. In 1Q24, the total market value of apartments sold in Batumi stood at US$ 209.3mn, down by 20.5% y/y. The reason was a significant reduction in recorded transactions during the period.
In 1Q24, the total number of registered transactions in Kobuleti reached 201, indicating a 24.1% y/y increase. Notably, transactions increased on both, the primary and secondary markets (+33.0% and +13.5% y/y, respectively). Notably, there is a rising trend of development activity in Kobuleti, with 26 ongoing residential projects at the moment vs 17 projects in 1Q23.
In 1Q24, weighted average price on the primary market in Kobuleti reached US$1,200/m2 (+6.5% y/y), driven by premium developments. In 1Q24, the real estate market size in Kobuleti increased by 19.5% y/y, reaching US$ 11.7mn.
Residential market in Bakuriani
In 1Q24, the number of apartments sold in Bakuriani reached 220 units, down 6.0% y/y. Majority of the transactions (65.5% of total) were recorded on the secondary market.
In 1Q24, weighted average price of apartments in Bakuriani was up slightly by 2.7% y/y, reaching US$1,044/m2. Total market size of apartments sold in Bakuriani stood at US$ 10.4mn, slightly down by 1.9% y/y, mostly due to reduced transactions on the primary market.
Residential market in Gudauri
In 1Q24, the number of apartments sold in Gudauri reached 95 units, up 3.3% y/y. Majority of the transactions (71.6% of total) were recorded on the primary market.
In 1Q24, weighted average price of apartments in Gudauri was down slightly by 1.7% y/y, reaching US$1,420/m2. Total market size of apartments sold in Gudauri stood at US$ 4.2mn, down by 11.0% y/y, mostly due to reduced prices.
