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%.

 

Residential Real Estate Sector Analysis

November 7, 2019
Sales are down, with the decrease observed both in sold residential units and in sold apartment area. We believe that somewhat steeper decline might be concealed by the lag in the registration of sales.While th ... learn more

Fixed Income Securities in Georgia

November 4, 2019
The total stock of outstanding Georgian bonds increased by 41% Y-o-Y (32% excluding FX effect) by the end of 3Q2019, mainly on the back of local corporate bonds and Eurobonds.Georgia is getting closer to an inv ... learn more