The pandemic has significantly affected Batumi residential real estate market, marking a sharp decrease of transactions in 2020, - TBC Capital notes in the report.
According to the report, in 2020, Batumi residential real estate market featured up to 7,500 transactions with over 416 thousand Sqm area, down -40% and -38% YoY, respectively.
Homebuyers purchased up to 1,200 apartments in 2M 2021 (-31% YoY), encompassing circa 67 thousand Sqm area in total (-30% YoY). TBC Capital notes, that on the district level, I Line posted a severe decline of transactions in 2020, at -71% YoY (-67% in terms of total area sold). The coastal line is the most popular location for investments in aparthotels, with nonresidents accounting for a large portion of the demand.
As for other parts of Batumi, the drop of sales was relatively lower compared to the coastal line. In 2020, number of residential properties sold decreased by -37% YoY in Inner Center, by -35% YoY in Suburbs and by -23% YoY in Periphery, reflecting preserved demand of locals, which account for higher portion of sales in these locations as compared to the I Line.
According to the report, number of residential property transactions are forecasted to return to the level of 2019 by 2022 in Batumi, in line with a gradual recovery of tourism and return of interest from foreigners. Considering the vaccination scenarios in Georgia and in tourism inflow generating countries, it is assumed that relative to 2019 there will be a 25% and a 90% recovery of tourist inflows in 2021 and 2022
