In 3Q23, the number of apartments sold in Batumi stood at 3,902 units, down 17.0% y/y and 1.1% q/q. This decrease was observed on both the primary (-16.5% y/y) and the secondary real estate markets (-17.8% y/y), - according to Galt&Taggart.
In 3Q23, sales decreased in nearly all districts of Batumi, except for New Boulevard Area (+10.3% y/y) and Gonio-Kvariati (+10.6% y/y). This reflects shift of real estate development to the suburbs of Batumi and other neighbouring areas of the city. Additionally, New Boulevard Area is leading in terms of the number of ongoing development projects. Out of 189 construction projects currently underway in Batumi, 75 (39.7% of
total) are located in the New Boulevard Area, increasing future supply of apartments in this district.
In 9M23, small (26-50 m2) and medium-sized (51-80 m2) apartment sales accounted for 90.5% of total sales. Additionally, there is a gradual transition towards premium segments from budget/midscale price segments. This shift is primarily attributed to price increases. As a result, in 9M23, 34.9% of total sales were recorded in upscale (USD 1,201-1,800) and upperupscale segments (USD1,801-3,000) compared to 23.3% in 9M22.
In 3Q23, weighted average price of apartments increased the most on the primary market (+19.1% y/y), followed by the secondary market (+12.0% y/y in new and +8.5% y/y in old projects). Prices were up the most in Gonio-Kvariati (+44.8% y/y). In 3Q23, total market size in Batumi stood at USD 245.4mn (-6.9%y/y) and in 9M23 at USD 750.7mn (+14.2% y/y). We expect Batumi residential real estate market size to reach USD 1.0bn in FY23.
