In Jun-23, the number of apartments sold in Tbilisi reached 3,940 units, showing 1.4% y/y and 8.0% m/m increase. This growth was solely attributed to a significant rise in primary sales, which surged by 18.8% y/y, reaching a record high of 1,830 apartments (excluding Dec-21). In contrast, the secondary market experienced a decline in both new and old apartment sales, with decreases of 5.7% y/y and 12.8% y/y, respectively, reads the recent publication of Galt & Taggart on Tbilisi Residential Real Estate - June 2023.
In Jun-23, the main contributors to sales growth were Samgori (+23.6% y/y), Didi Dighomi (+25.2% y/y) and Didube (+28.0% y/y). Importantly, Saburtalo and Vake had a significant reduction in apartment sales in Jun-23, decreasing by 21.6% y/y and 27.1% y/y, respectively. Other notable features of the market remained consistent, including the prevalence of medium-sized apartments (51-80 m2) and the midscale/upscale segments (801-1,800$).
Prices
In Jun-23, prices increased the most on a primary market in projects sold directly by developers (+28.0% y/y), indicating growth potential in secondary market prices as well. The biggest price growth was detected in Didube (+41.0% y/y) and Nadzaladevi (+31.8% y/y).
Market size
In Jun-23, total market size of apartments sold in Tbilisi stood at US$ 253.6mn, up by 7.2% y/y and 4.2% m/m. Primary market size increased the most (+18.2% y/y).
Rent
In Jun-23, real estate rents remained elevated (+43.3% y/y), however, the rate of growth has been steadily declining since Apr-23, indicating a trend towards stabilization.
Construction permits
Construction permits increased by 124.5% y/y in 5M23, in line with the ongoing upward trend observed since 2020. If this trajectory persists, it is expected to have a downward pressure on real estate prices and rental rates in the medium term.
Notably, residential construction permits were distributed equally in 5M23 between central, wide center and suburban districts of Tbilisi (34%/33%/33%). Markedly, average permit size increased by 37.5% y/y, indicating preference for larger residential projects. Most construction permits were issued for Saburtalo, followed by Didi Dighomi and Isani in 5M23.
