Residential Real Estate Sector Analysis Report Update H1 2019

  • The number and the area of apartments sold in H1 2019 broadly mirrors the same period of the previous year, with a total sales of 16,296 apartments constituting 1,119,000 Sqm in living area.
  • In H1 2019, new apartment sales kept growing, up 5.4% YoY, whereas the sales of the old apartments continued to decrease, down -7.1% YoY, driven by decline in transactions of relatively smaller apartments.
  • The mortgage portfolio is on growth track, currently up by 3.9% on FX effect adjusted basis (6.1% adjusted for seasonality) since the beginning of the year.
  • After the initial steep decline, the interest rates on GEL mortgage loans have leveled off since May at 8.9%.
  • The overall price level of apartments has increased in GEL (up 2.6%), but decreased in USD (down -1.4%), explained by the depreciation of national currency relative to USD.
  • There are signs of revival in new construction permits issued for residential apartment blocks in Tbilisi, with 91 new apartment block permits issued, comprising 417,000 Sqm of living area.
  • The share of foreign buyers of Tbilisi residential real estate is at 8% of total sales by the end of June 2019.
  • Throughout 2018, this share was 13%.


Energy Sector Overview: Charging Forward

July 31, 2019
Electricity consumption is growing faster than generation in Georgia. Consumption has grown at a 5% CAGR over the past six years to 12.6 TWh in 2018, while generation increased at a 3.8% CAGR to 12.1 TWh. The h ... learn more


July 10, 2019
The total transaction value of Batumi residential real estate market reached USD 0.51bn in 2018, delivering the two year CAGR of over 30%. A total 12,303 apartments (+13.7% YoY) with livable space of 665,000 Sq ... learn more