Tbilisi Residential Market: Monthly Watch

11 Sep, 2020
  • In August, 2,387 residential property transactions with a total of 158,300 Sqm area were registered in Tbilisi, with growth rates of -17.4% and -19.3% YoY, up from -17.9% and -20.5% YoY in July
  • Share of new apartments is up again (65% in august) boosted by the subsidy program
  • Sales were down in all districts in 8m 2020, Gldani and Samgori displayed more resilience
  • Small & medium-size apartments continue dominating the market
  • The proportion of mortgages to total sales is increasing, backed by returning demand and the subsidy program
  • While selling prices are down for old apartments, they are increasing for new apartments on the back of the returning demand
  • Construction permit issuance has remained solid in Tbilisi. In 7m 2020, Tbilisi saw 118 new apartment block permits, accounting for 586,000 Sqm residential space (+11 YoY)
  • Approved area is up in most districts, down in Didi Dighomi (-22% YoY), Samgori (-29% YoY) and Vake (-48% YoY)
  • 1,240,000 Sqm unsold living area is currently available on the primary market under permits issued since 2015. 23% of this outstanding stock is in Didi Dighomi, followed by Saburtalo (14%), Isani (14%) and Gldani (13%)
  • Compared to January, monthly rental asking prices are down by -16% in Tbilisi
  • Rental yield is on decline, standing at 7.7% in July, below its long-term trend
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