TBC Capital published a report on Tbilisi Commercial Real Estate. According to the document, in Tbilisi street retail, average actual rent price increased by 11.2% YoY in 9M 2023, reaching USD 19.3 per SQM, almost the same as 2019 level (19.5 USD per SQM).
In January-September 2023, street retail rent price per square m stood at USD 27.2 in Vake, the growth amounted to 29%. Chugureti district ranks second with 32% growth, where per square m price amounts to USD 26.2. The cheapest street retail rent price per squre m was observed in Nadzaladevi and Samgori.
Average Rent Per SQM By District:
Vake- $27.2
Chugureti - $26.8
Mtatsminda - $22.7
Saburtalo - $19.6
Krtsanisi- $19
Didube - $18.3
Isani - $17.6
Gldani- $17.2
Didi Digomi - $16.5
Nadzaladevi - $15.3
Samgori - $15.2
In Tbilisi shopping malls actual rent prices posted a 7.5% YoY growth in 9M 2023. As the majority of rent agreements in shopping malls include turnover-based models, the high annual growth rate of actual rent price is explained by increase in turnover of retail sector.
The average vacancy rate in Tbilisi shopping malls stood at 7.4% in September 2023, a 2.9 pp improvement YoY. However, vacancies varied significantly by malls reaching 35% in some of them. Looking ahead to 2024, we anticipate even greater activity in Tbilisi shopping malls and the average vacancy rate is projected to decrease further, accompanied by increased rent prices.
