According to the real estate price index of the National Bank of Georgia, real estate prices are down in Georgia.
The index fell 9.9 points in August comparing to July and amounted to 424.6, while the real estate price index is 36.7 points down in the last four months.
Price decline is related to reduced demand amid coronavirus crisis.
According to the NBG’s Financial Stability Report, real estate price decline will continue in the future, but price adjustment will not be as sharp as it has been during the financial crisis of 2008.
“Real estate transactions are 65% down in Q2, 2020 in Tbilisi comparing to the same period of the last year. Transaction reduction was caused by the restrictions, introduced to curb the spread of the COVID-19 and devalued national currency. However, it is expected that demand for real estate will continue to grow after the reduction of uncertainty and elimination of the negative effects of the crisis. Sector recovery largely depends on the remediation of the epidemiological situation and the depth of the recession caused by the pandemic”, the NBG’s report notes.
