Residential Real Estate USD 176.4 MLN Worth Was Sold In April In Tbilisi
2,705 apartments were sold in Tbilisi in Apr-23 down by 23.4% y/y (-24.9% m/m). Sales were down in all types of apartments (primary, secondary market new projects, secondary market old projects), reflecting last year high base effect as well as reduced demand,- according to the report published by Galt&Taggart.
In Apr-23, the key characteristics of the market were as follows:
* Sales by size - medium-sized (51-80 m2 ) apartment sales were most prevalent;
* Sales by segment – share of midscale/upscale segments increased reflecting price effect;
* Sales by district - Majority of sales were recorded in Saburtalo (18.2% of total) as usual, followed by suburban districts - Didi Dighomi, Samgori, Gldani – which accounted for 41.1% of total sales.
According to the document, real estate asking prices remained elevated up 31.1% y/y in April, however GEL appreciation eased pressure for customers as prices were up 7.9% y/y in GEL.
Despite continued growth in prices, reduced transactions resulted total residential real estate market size to fall to USD 176.4mn in Apr-23, down by 16.8% y/y and 21.5% m/m.
Real estate rents remained elevated (+52.3% y/y) in Apr-23, but growth pace has been on a downward trajectory since Feb-23, reflecting base effect.