Real Estate Market Q4 2018: Market Highlights

In Q4 2018, Sale Price Index (SPI) for residential properties experienced an increase of 6.2% quarterly (QoQ) while Rent Price Index (RPI) decreased by -7.3% (QoQ).

During this quarter, Average Sale Price (ASP) varied between 871 USD and 913 USD per m2 (monthly average), and Average Rent Price (ARP) was between 7.1 USD and 8.1 USD per m2 (monthly average). The quarterly averages are 887 USD for ASP and 7.5 USD for ARP.

For Q4 2018, ASP increased (YoY) in all Tbilisi’s districts. The highest increase can be observed in Isani and Didube, 18.4% and 16.3%, respectively. ARP revealed various patterns for various districts. The highest drop was in Nadzaladevi, by -9.5% (YoY), while the highest jump was in Isani, by 9.6% (YoY).

Due to the new law, which requires the pricing of real estate in GEL, prices in the local currency stabilized starting in Q3 2017, while the prices in USD became more volatile, reflecting exchange rate fluctuations.

In Q4 2018, the most expensive and the cheapest districts of Tbilisi by ASP were: Mtatsminda (1096 USD) and Samgori (552 USD); and by ARP: Mtatsminda (8.72 USD) and Gldani (4.40 USD).

COMMERCIAL PROPERTY PRICES

After its upward trend during the last three consecutive quarters, SPI decreased by 12.9% (QoQ) in Q4 2018, dropped to 0.856 index points. RPI decreased as well, by 37.1% (QoQ), to 0.924 index points.

During Q4 2018, ASP varied between 1032 and 1136 USD per m2, and ARP between 9.18 and 10.55 USD per m2. The ASP for commercial properties increased by 4.2 % (YoY), and reached 1076 USD per m2. While ARP increased as well by 4.0% (YoY) to 9.73 USD per m2.

BATUMI & KUTAISI RESIDENTIAL PROPERTY

In Q4 2018, ASP for residential properties in Batumi increased by 11.6 % (YoY) and reached 842 USD per m2. While in Kutaisi ASP increased as well but only by 6.4% (YoY) and amounted to 399 USD per m2.