Real Estate

Presales from developers

Number of transactions
In Feb-24, the number of sold apartments in Tbilisi stood at 3,444 units, up 0.9% y/y, after 6.3% y/y growth in Jan-24. This growth is solely attributed to increased transactions on the primary market (+11.8% y/y), while sales on the secondary market decreased by 7.5% y/y.

Number of transactions
In Jan-24, the number of registered transactions in Tbilisi stood at 3,068 units, up 6.3% y/y. This growth is solely attributed to increased transactions on the primary market (+21.2% y/y), while sales on the secondary market decreased by 5.8% y/y. 

Prices
Weighted average price on the primary market increased to US$ 1,266, up by 0.5% m/m. 

Residential market in Adjara

In 2023, the total number of apartments sold in Batumi reached 15,758 units, indicating a 7.5% y/y decrease. This decrease could be attributed to a record-high 2022 base and weaker migrant outflow. Notably, this reduction was mainly due to decreased apartment sales on the primary market (-10.0% y/y), while sales on the secondary market decreased at a relatively lower rate. However, number of sales in 2023 still represents a significant 29.6% increase compared to the 2021 level. 

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

Number of transactions

In Nov-23, the number of apartments sold in Tbilisi stood at 3,300 units, down 14.9% y/y (-0.8% m/m). 

Cumulatively in 11M23, the total number of apartments sold in Tbilisi reached 36,283 units, showing a 7.3% y/y decrease (attributed to a record-high base). However, this still represents a 12.0% increase compared to 11M21, still indicating robust demand in the real estate sector.

Prices

Interest in the Tbilisi residential real estate market has sharply increased in recent years, linked to the rise in demand and rental income. Consequently, this study addresses three pressing questions in Tbilisi's residential real estate market: Are demand factors healthy? Is there a threat of real estate oversupply? What do real estate prices reflect?

Number of transactions

In Oct-23, the number of apartments sold in Tbilisi stood at 3,325 units, down by 16.6% y/y. This drop is mostly explained by last year’s high base. On a monthly basis, sales were up by 5.2%. Sales on the primary market increased the most (+6.9% m/m) compared to the secondary market new and old projects (+5.1% and +2.8% m/m, respectively).

In Oct-23, annual sales decreased in all districts of Tbilisi. Importantly, the biggest contributors to this decrease were Isani (-31.5% y/y) and Gldani (-20.8% y/y) districts.

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).

Number of transactions