Presales from developers
Based on our developer survey results, in 2023, direct purchases of apartments from these developers increased by 4.2% y/y, reflecting uninterrupted demand on the Tbilisi real estate market.
Nearly all units in projects completed in 2023 and almost half of the apartments in projects due for completion in 2026-28 are already sold.
Number of transactions
In 2023, the total number of apartments sold in Tbilisi reached 39,949 units, indicating a 7.0% y/y decrease, primarily attributed to record-high 2022 base. However, it still represents a notable 7.7% increase compared to the 2021 level.
Notably, the decline in 2023 was entirely driven by a 13.5% y/y decrease in the secondary market, while the primary market posted a 1.6% y/y growth.
Prices
By end-2023, annual growth of apartment prices was twice more for primary market than the secondary one (+21.3% and +10.0% y/y, respectively).
By end-2021, buyers in Tbilisi could secure apartments at $600/m2, but the minimum benchmark has now risen to $900/m2.
Market size
In 2023, the real estate market size experienced a significant 9.9% y/y increase, reaching US$ 2.9bn, despite reduced sales. This growth was predominantly fueled by the rising prices in the primary market.
Rent
By end-2023, rent for an average apartment in Tbilisi stood at US$ 10.7/m2. Despite 5.1% y/y decrease, this rate remains twice as high as the 2021 level.
Construction permits
In 2023, 255 construction permits were issued for residential projects, with total living area of 1.9mn m2 (+34.1% y/y).