Residential Real Estate Sector Analysis REPORT UPDATE 9M 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 the YoY decline can be partly explained by the high base of 2018, sales declined relative to the previous quarter as well. On the other hand, the market activity remains stronger compared to year 2017.
  • The depreciation of GEL resulted in less demand for residential properties. The slow-down of mortgage growth also had its toll on sales. As a counter-measure, the developers are more actively engaged in inner-installment schemes.
  • The interest rates on GEL mortgage loans started to increase, making the GEL mortgages costlier. This, together with the decreased reserve requirements in FX and stable or appreciating GEL, should contribute to the growth of foreign currency mortgages.
  • The construction permits picked up, indicating the increase in future supply.
  • The overall price level increased in GEL, but decreased in USD, explained by the depreciation of local currency relative to USD.


FMCG Sector Analysis: Moving Fast

November 29, 2019
A pie is getting bigger. The Georgian FCMG market is expected to reach GEL 9.4bn in 2019, up 7% y-o-y. Ongoing urbanization, decreasing unemployment and higher purchasing power drive the domestic FMCG consumpti ... 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