Number of transactions
In Jul-23, the number of apartments sold in Tbilisi reached 3,656 units, showing 4.7% y/y and 7.2% m/m decrease from the high bases of previous periods. Notably, sales were up on a primary market (+13.9% y/y) and down on a secondary market (-13.5% y/y in new projects and -18.8% y/y in old projects). Overall, despite slight deceleration of sales, demand on the market remained healthy.
In Jul-23, annual sales decreased in all of the central districts of Tbilisi (Saburtalo, Vake, Mtatsminda), while suburban districts, Samgori and Didi Dighomi, along with Nadzaladevi posted a strong increase in sales. Other notable features of the market remained consistent, including the prevalence of medium-sized apartments (51-80 m2) and rising attractiveness of midscale/upscale segments.
Prices
In Jul-23, prices on a primary market increased slightly by 0.8% m/m. Prices were also up (+2.7% m/m) on a secondary market of old projects. In contrast, prices on a secondary market of new projects decreased by 4.6% m/m, mainly due to reduced prices in Saburtalo, Gldani and Isani districts (collectively accounting for 39.4% of total sales on a secondary market of new projects).
Market size
In Jul-23, total market size of apartments sold in Tbilisi stood at US$ 256.3mn, up by 14.5% y/y, mainly due to increased prices compared to previous year.
Rent
In Jul-23, real estate rents reversed slightly and increased by 3.4% m/m, leaving rental prices elevated and real estate rental yield attractive for investors.
Construction permits
Construction permits issuance increased by 76.8% y/y in 7M23, in line with the ongoing upward trend observed since 2020. If this trajectory persists, it is expected to have a downward pressure on real estate prices and rental rates in the medium term, leading to oversupply on the market.
Most construction permits were issued for Saburtalo, followed by Didi Dighomi and Isani in 7M23.
Notably, there has been a significant growth of issued construction permits in Isani, Vake and Saburtalo districts in 7M23.