Number of transactions
In Jun-24, the number of sold apartments in Tbilisi stood at 2,957 units, down 21.9% y/y and 7.5% m/m. Notably, sales have decreased in both the primary and secondary markets.
Prices
In Jun-24, monthly price increase on the primary market was only 0.1%, which is the lowest increase in the last 30 months. The slowdown in the price growth pace is slightly more noticeable in the premium segment projects.
Number of transactions
In May-24, the number of sold apartments in Tbilisi stood at 3,197 units, down 7.9% y/y and 0.7% m/m. The decline can be attributed to the numerous public holidays in May-24 and domestic political tensions. Unstable environment and subsequent fluctuation of GEL exchange rate, prompted some potential home buyers to postpone their decisions and to wait until the situation stabilizes, in our view.
Prices
Number of transactions
In Apr-24, the number of sold apartments in Tbilisi stood at 3,220 units, up 24.7% y/y and up 7.7% m/m. Strong annual growth is explained by last year’s low base effect.
Prices
In Apr-24, prices increased monthly for new projects (both, primary and secondary markets).
Market size
Presales from developers
Based on survey results of selected developers, around 20% of the real estate projects that started in 2018-19 remain unsold, while almost 60% of the projects that began in 2020-21 are completely sold out. Notably, in the real estate market of Adjara during 2023-24, Georgian citizens accounted for 20% of total sales, while citizens from Russia and Israel comprised 24% and 6%, respectively. The remaining half of apartment sales involved a diverse range of countries.
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
