Real Estate Market Oct-Dec 2019 Market Highlights

In comparison to Q3 2019, the Georgian real property market expanded by 4.7% in Q4 2019 (from 33,051 units sold in Q3 to 34,602 in Q4) while the annual increase was observed at 3.0% (YoY) compared to Q4 2018.

Tbilisi dominated the real property market with a 40.7% share in total sales in Q4 2019. The Tbilisi market was followed by Adjara and Kakheti, with a respective 12.4% and 12.2% of GEO sales.

RESIDENTIAL PROPERTY PRICES

In Q4 2019, the Sale Price Index (SPI) for residential properties experienced a decrease of 4.4% (QoQ), while the Rent Price Index (RPI) increased by 1.2% (QoQ).

During this quarter, the Average Sale Price (ASP) varied between 861 USD and 989 USD per m2 (monthly average), and the Average Rent Price (ARP) was between 7.2 USD and 7.5 USD per m2 (monthly average). The quarterly average is 934 USD for ASP and 7.3 USD for ARP.

For Q4 2019, the ASP in USD increased (YoY) in all districts of Tbilisi, excluding Isani (-0.9%). The greatest increases are observable in Nadzaladevi (+26.7%), followed by Samgori (+12.2%), and Krtsanisi (+11.4%).

The ARP in USD decreased (YoY) in Vake (-5.1%), Mtatsminda (-3.2%), and Saburtalo (-2.6%), and increased in the remaining districts, with the highest increase found in Nadzaladevi (16.7%).

In Q4 2019, comparatively the most and least expensive districts by ASP were: Mtatsminda (1,170 USD) and Gldani (579 USD); and by ARP: Mtatsminda (8.4 USD) and Gldani (4.5 USD).

For Q4 2019, the TOP 3 regions by unit sales were:

Tbilisi (14,084 units, 40.7%)

Adjara (4,288 units, 12.4%)

Kakheti (4,238 units, 12.2%)

For Q4 2019, the TOP 3 Tbilisi districts by unit sales were:

Saburtalo (3,591 units, 25.5%)

Vake (2,375 units, 16.9%)

Gldani (1,609 units, 11.4%)

COMMERCIAL PROPERTY PRICES

The SPI for commercial properties increased by 12.8% (QoQ) in Q4 2019, reaching 0.95 index points (index equals 1 in base period, Q3 2015).

The RPI increased by 12.6% (QoQ) and settled at 1.04 index points.

Throughout Q4 2019, the ASP varied between 1,135 and 1,437 USD per m2, and the ARP between 8.66 and 9.96 USD per m2.

In Q4, the ASP for commercial properties increased by 16.0% (YoY) and reached 1,248 USD per m2. While the ARP decreased by 6.1% (YoY), and reached 9.14 USD per m2.

BATUMI & KUTAISI RESIDENTIAL PROPERTY

In Batumi, the SPI for residential property in Q4 2019 decreased by 4.5% (QoQ), dropping to 1.12 index points. Whereas, the SPI for residential property in Kutaisi grew significantly, by 29.6% (QoQ), and reached its highest in three years at 1.39 index points.

The ASP of residential property in Batumi decreased by 1.8%, although it increased in Kutaisi by 7.7% (QoQ), and amounted to 768 and 509 USD per m2, respectively.