In 2024, the trend in apartment sales to foreign citizens shifted, with the share of Russian buyers declining from 7% to 2% of total and the share of Israeli buyers rising from 4% to 12%, - according to the report published by Galt&Taggart.
As of the document, the growing presence of buyers from various other countries underscores increased market diversification.
In Nov-24, based on official registrations, real estate transactions in Tbilisi increased by 6.5% y/y, reaching 3,513 units. A real-time survey of developers also indicates a rebound in demand in November, with apartment sales up 12.3% m/m and flat y/y.
Additionally, primary market prices in November rose slightly by 0.4% m/m, reaching $1,312 per square meter. On the supply side, the area of construction permits increased by 74.3% y/y in November, continuing growth after a decline in June-September period.
According to G&T's latest survey of systematic developers, in Nov-24 the number of apartment sales increased by 12.3% m/m and stayed flat y/y in Tbilisi.
The increase was driven by:
1. Pent-up demand after October 2024 elections.
2. The launch of new large-scale developments, with over five major residential projects starting sales since June 2024.
96% of apartments are already sold in the projects finishing by end-2024. For the projects completing in 2025, this figure is 71%. Importantly, the majority of these sales are facilitated through inner instalment schemes offered by developers.
In 2024, the trend in apartment sales to foreign citizens shifted, with the share of Russian buyers declining from 7% to 2% of total and the share of Israeli buyers rising from 4% to 12%. Furthermore, the growing presence of buyers from various other countries underscores increased market diversification.
In Nov-24, the number of sold apartments on the secondary market (new and old projects combined) in Tbilisi stood at 1,669 units, down by 4.5% y/y and 9.9% m/m. Cumulatively, in 11M24, 18,405 apartments were sold on a secondary market in Tbilisi, down 4.9% y/y.
