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
Number of transactions
Number of transactions
Real estate market in Batumi, Bakuriani, and Gudauri heavily relies on foreign buyers. In 2022, demand surged due to recovering tourism and migration, leading to higher prices driven also by increased construction costs and wages. In 2023, residential demand slowed down, but prices remained high.
Currently, there are 167 projects under development in Batumi, 18 in Bakuriani, and 9 in Gudauri. A steady supply and stable construction material prices are expected to stabilize price growth in these regions.
Residential market in Batumi
Residential Real Estate
• Tbilisi
• Batumi
• Bakuriani/Gudauri
Number of transactions
In Jun-23, the number of apartments sold in Tbilisi reached 3,940 units, showing 1.4% y/y and 8.0% m/m increase. This growth was solely attributed to a significant rise in primary sales, which surged by 18.8% y/y, reaching a record high of 1,830 apartments (excluding Dec-21). In contrast, the secondary market experienced a decline in both new and old apartment sales, with decreases of 5.7% y/y and 12.8% y/y, respectively.
Number of transactions
In May-23, apartment sales increased after reduction in previous month - 3,650 apartments were sold in Tbilisi, up by 2.0% y/y and by 34.9% m/m. This growth was solely driven by primary sales increasing by 20.0% y/y to record high 1,650 apartments (excluding Dec-21). Meanwhile, secondary market posted decline both in new and old apartment sales, -5.5% y/y and -12.0% y/y, respectively.
