Galt & Taggart published a report on Tbilisi Residential Real Estate. According to the report, in Jul-24, the number of sold apartments in Tbilisi stood at 3,476 units, slightly down 1.3% y/y, but up 17.6% m/m.
The monthly growth is largely due to a one-off effect from the late registration of already sold apartments in several projects. Cumulatively, in 7M24, 22,353 apartments were sold in Tbilisi, reflecting a 3.2% y/y decrease. Notably, apartment sales were down on the secondary market (-3.7% y/y) and slightly up on the primary market (+1.1 y/y).
Other noteworthy features of the market remained unchanged, such as the dominance of medium-sized apartments (51-80 m2 ), due to affordability and the ease of renting, and falling share of sold apartments in the budget segment.
Prices In Jul-24, average price on the primary market stayed flat. This is the first time prices did not increase on the primary market since the beginning of 2022, reflecting weakened demand. Market size In Jul-24, the total market value of apartments sold in Tbilisi stood at US$ 270.4mn, up by 5.5% y/y and 18.4% m/m.
Cumulatively in 7M24, Tbilisi real estate market size was up by 1.9% y/y to US$ 1,708.5mn. Rent Price for renting an average apartment (50-60 m2 ) in Tbilisi decreased slightly by 0.9% m/m to US$ 9.8 per m2 .
Construction permits In Jul-24, a sharp reduction in construction permits continued, which started in Jun-24. A total of 20 permits were issued and the living area of these permits has declined by 40.3% y/y. We expect that developers will delay permit finalization process until the demand improves considerably.
