TBC Capital published a report on Real Estate In Tbilisi. According to the document, in April 2023, the real estate market activity dropped significantly compared to the previous month, with the number of transactions falling behind March by 25%. A total of 2,512 transactions were made in April, which is 22% lower than in April 2022.
Despite the considerable decline in transactions, the asking sale price remained stable. The average price stood at USD 1,177 in the reporting period, which is 32% higher than in the same period of the previous year. Due to the decline in sales, the market size decreased by 23% YoY,
amounting to USD 200 million.
The growth of average asking rent price slowed down, standing at USD 12.8 and posting a 1.6% decline relative to March. In annual terms there was a 52% growth observed.
As for the average rental yield in Tbilisi, in April 2023 it stood at 11.4%, marking a 1.5 pp increase compared to April 2022.
Despite the sizeable decline in April in terms of sales and consequently, market size, the preliminary data for May 2023 seems more promising and we are not expecting a similar drop. Furthermore, it is important to note that in Jan-Apr 2023, the residential area covered by issued construction permits increased by 76% and considering this level of growth in market supply, TBC Capital will closely monitor the situation and update projections accordingly.
According to the report, in April 2023, Saburtalo still takes the top as the district with the highest number of sold residential properties in Tbilisi. New apartment sales posted a YoY decline in nearly all districts except for Isani, where the growth amounted to 4% relative to April 2022.
In case of old apartment sales, the majority of districts recorded negative growths. Vake (-41%), Didube (-33%) and Samgori (-26%) posted largest declines in YoY terms, while only Krtsanisi (+19%) and Isani (+4%) had positive growths.
Vake and Mtatsminda still posted the highest sale prices in Tbilisi. In April 2023, average price per SQM in Vake exceeded USD 1,800. In the same period, there was a double digit annual growth recorded in all districts for both new and old apartments.
