TBC Capital updated Residential Real Estate Sector Analysis.
According to the research, in Q3 2019, the number of sold apartments totaled 8,204 in Tbilisi, down -11.9% YoY. The decrease was also significant in terms of sold apartment area -11.4% YoY. Despite, the market activity remains stronger compared to year 2017.
As of the research, depreciation of GEL resulted in less demand for residential properties. The slowdown of mortgage growth also had its toll on sales.
“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.
In 9M 2019, Tbilisi saw 149 newly issued building permits for multi-apartment and multi-functional blocks, which is 40% higher comparing to the same period of the previous year.
The index level increased by 6.6% in GEL and fell by -4.0% in USD in nominal terms, as compared to December 2018. The opposite directions of price change in different currencies is linked to depreciation of the local currency.
Researchers of TBC Capital predict real-estate price change in foreign currency”, - the research notes.
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