Average rent price in Tbilisi up 70%, Sales Price grows 16%
Tbilisi residential market performance have stabilized during the recent months, reads the recent publication of TBC Capital on Residential Real Estate in Tbilisi.
In July 2022, the number of transactions, remained basically unchanged compared to the previous month (-0.3%), while it increased significantly relative to the same period of 2021 (+17.2%), the report says.
"The average asking sale price remained at the elevated level in July 2022 compared to July 2021 (+15.7%). However, in MoM terms sale prices declined by 0.6%, despite the GEL 3.6% appreciation against USD.
As for the average asking rent price, it stayed at a considerably higher level relative to July 2021 (+69.8%). In MoM terms rent prices declined (by 2%) for the second consecutive month.
The migration impact is already fully reflected in rent prices. Some migrants could leave the country or move to buying, which will negatively affect the rental market. On the other hand, the demand on Tbilisi rental market will be fueled by students who return to classrooms from the beginning of a new academic year.
The dynamic in average asking sale and rent prices drove the rental yield down by 0.2 percentage points (pp) in July 2022 to 10.2%. It was still notably higher than the long-term average rental yield (8.2%) and FX deposit rate (2%)," the report concluded.