Residential market in Batumi
In 3Q23, the number of apartments sold in Batumi stood at 3,902 units, down 17.0% y/y and 1.1% q/q. This decrease was observed on both the primary (-16.5% y/y) and the secondary real estate markets (-17.8% y/y).
In 3Q23, sales decreased in nearly all districts of Batumi, except for New Boulevard Area (+10.3% y/y) and Gonio-Kvariati (+10.6% y/y). This reflects shift of real estate development to the suburbs of Batumi and other neighbouring areas of the city. Additionally, New Boulevard Area is leading in terms of the number of ongoing development projects. Out of 189 construction projects currently underway in Batumi, 75 (39.7% of total) are located in the New Boulevard Area, increasing future supply of apartments in this district.
In 9M23, small (26-50 m2) and medium-sized (51-80 m2) apartment sales accounted for 90.5% of total sales.
Additionally, there is a gradual transition towards premium segments from budget/midscale price segments. This shift is primarily attributed to price increases. As a result, in 9M23, 34.9% of total sales were recorded in upscale (US$ 1,201-1,800) and upper-upscale segments (US$ 1,801-3,000) compared to 23.3% in 9M22.
In 3Q23, weighted average price of apartments increased the most on the primary market (+19.1% y/y), followed by the secondary market (+12.0% y/y in new and +8.5% y/y in old projects). Prices were up the most in Gonio-Kvariati (+44.8% y/y).
In 3Q23, total market size in Batumi stood at US$ 245.4mn (-6.9%y/y) and in 9M23 at US$ 750.7mn (+14.2% y/y). We expect Batumi residential real estate market size to reach US$ 1.0bn in FY23.
Residential market in Bakuriani
In 3Q23, the number of apartments sold in Bakuriani reached 233 units, down 34.9% y/y (due to the record high base in 3Q22) and up by 11.5% q/q.
In 9M23, small and medium-sized apartment (26-80 m2) sales accounted for 95.5% of total sales, in line with existing trend. Moreover, around half of sold apartments were recorded in the midscale price segment ($801-1,200).
Total of 19 projects are currently under development in Bakuriani and most of them (9 projects) are located near the Kokhta Mountain.
In 3Q23, weighted average price of apartments in Bakuriani was up by 5.0% y/y. Total market size of apartments sold in Bakuriani stood at US$ 10.2mn, down by 32.2% y/y (due to the record high base in 3Q22) and up by 13.5% q/q.
Residential market in Gudauri
In 3Q23, the number of apartments sold in Gudauri reached 98 units, down 14.8% y/y and up by 30.7% q/q.
In 9M23, small-sized apartment (26-50 m2) sales accounted for 87.0% of total sales. Notably, Gudauri has the highest proportion of small-sized apartments in total sales when compared to Batumi and Bakuriani. Moreover, over half of sold apartments were recorded in the upscale price segment ($1,201-1,800).
In 3Q23, weighted average price of apartments in Gudauri was up by 2.8% y/y. Total market size of apartments sold in Gudauri stood at US$ 4.8mn, down by 6.6% y/y and up by 19.9% q/q.