In Jan-25, apartment sales in the projects of selected developers continued declining (-7.5% y/y). Secondary market apartment sales stood at 1,363 indicating 9.3% y/y decrease.
Price per square meter on the primary market remained flat m/m at US$ 1,319.
In Nov-24, based on official registrations, real estate transactions in Tbilisi increased by 6.5% y/y, reaching 3,513 units. A real-time survey of developers also indicates a rebound in demand in November, with apartment sales up 12.3% m/m and flat y/y. Additionally, primary market prices in November rose slightly by 0.4% m/m, reaching $1,312 per square meter. On the supply side, the area of construction permits increased by 74.3% y/y in November, continuing growth after a decline in June-September period.
In October 2024, based on official registrations, transactions in Tbilisi increased by 12.8% y/y and 6.3% m/m, reaching 3,750 units. However, a real-time survey of developers indicates a slowdown in demand. Sales among selected developers in Tbilisi fell by 10.9% m/m and by 11.8% compared to 4M24 average, period of strong sales. This decline is attributed to domestic political instability. Additionally, primary market prices in October rose slightly by 0.3% m/m, reaching $1,307.
After record-high demand in 2022-2023, Batumi real estate market experienced a slowdown in 2024. This decline can be attributed to several factors, including a gradual outflow of migrants, rising prices, high interest rates, and domestic political instability. Despite these challenges, Batumi’s real estate market remains one of the highest-yielding in comparison to many peer cities, and prices continue to rise, albeit at a slower pace.
In September 2024, demand for real estate continued to improve. Prices in September increased slightly by 0.1% m/m after 0.3% m/m increase in August. On the supply side, the volume of construction permits has stabilized in the last two months, although it still remains lower by 23.6% y/y, partially reflecting last year's high base. The dynamics of permit issuance are expected to remain steady through the end of 2024, with future trends determined by the strength of demand.
In August 2024, demand for real estate continued to improve, but it still remains sluggish compared to the beginning of the year. Prices in August increased slightly by 0.3% m/m on the primary market, after remaining flat in July. Weakened demand is also affecting supply - over the past three months, the volume of permits issued for construction has decreased sharply, by 41.9% y/y. Permit issuance dynamics are likely to be maintained by end of 2024 as developers await until demand improves considerably.
In July 2024, demand for real estate improved, but still remained sluggish compared to 4M24. As a result of weakened demand, price growth decelerated - Jul-24 was the first month when prices remained completely flat m/m, since the beginning of 2022. Sluggish demand also affected supply - in the June-July period, permit issuance decreased drastically by 58.2% y/y and 40.3% y/y, respectively. Permit issuance dynamics are likely to be maintained by end of 2024 as developers await until demand improves considerably.
Residential market in Adjara
In 2Q24, the total number of registered transactions in Batumi reached 3,670, indicating a 6.7% y/y decrease. Notably, sales reduced on both, primary and secondary markets (-3.3% y/y and -11.0% y/y, respectively). Sales decreased in every district of Batumi, except New Boulevard Area (+4.9% y/y).
