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Real-Estate Transaction Number 62% Higher Than Its Pre-pandemic Level - TBC Capital

61f8f5866b245
Natia Taktakishvili
01.02.22 12:30
491
TBC Capital published monthly watch on Tbilisi Residential Real Estate. According to the report, the end of 2021 was stronger than expected. In December 2021, an unusually high number of transactions was recorded and sold residential properties amounted to nearly 5000 units. This figure is 62% higher than its pre-pandemic level. In 2021, the total number of transactions exceeded its 2019 level by 9%. This strangely high number of transactions, in December 2021, can be partially explained by NBG’s decision to set the maximum mortgage loan limit in foreign currencies to 10 years instead of 15, effective since January 1, 2022.

Property prices remain stable, exceeding the pre-pandemic level. The average residential real estate price, in December 2021, is 1.2% higher compared to 2019. The rent continues recovering, with YoY figure improving slightly, standing at 9.3% in December 2021 (+7.2% in November). However, the pre-pandemic level is still out of reach. Rent remains 16.3% below the 2019 figure.

Tourism still needs time to recover and therefore, investments in Airbnb designated properties are less likely to occur.

In Q4 2021, the demand was higher for newer apartments and about 7800 of them were sold, which is 36% higher than in 2019 (+20% YoY). The share of new properties accounted for 66% of total transactions and the total area amounted to 532 thousand SQM.

In Q4 2021, average sales-weighted prices in USD terms are at their record high. The price for new apartments stands above the 2019 level by 12% (+14% YoY).

In 2021, the number of transactions, in the majority of districts, is higher or at the same level relative to 2019. The double digit growth club gained a new member, Gldani (+12%). The rest are the same, with Didube (+37%) taking the top, followed by Isani (+23%) and Samgori (+21%). Saburtalo still holds the largest share of total transactions in Tbilisi (19%).