Number of transactions
In Oct-23, the number of apartments sold in Tbilisi stood at 3,325 units, down by 16.6% y/y. This drop is mostly explained by last year’s high base. On a monthly basis, sales were up by 5.2%. Sales on the primary market increased the most (+6.9% m/m) compared to the secondary market new and old projects (+5.1% and +2.8% m/m, respectively).
In Oct-23, annual sales decreased in all districts of Tbilisi. Importantly, the biggest contributors to this decrease were Isani (-31.5% y/y) and Gldani (-20.8% y/y) districts.
Other noteworthy features of the market remained unchanged, such as the continued dominance of medium-sized apartments (51-80 m2) and rising share of midscale/upscale segments, driven by rising prices.
Prices
In Oct-23, prices increased the most on the secondary market for new projects (+1.4% m/m), followed by the primary market prices (+0.7% m/m). Prices on the secondary market old projects decreased by 4.4% m/m.
Importantly, the highest annual increase in average asking prices from developers on a primary market was recorded in Didube (+39.2% y/y), driven by rising number of premium-class developments in the area.
Market size
In Oct-23, the overall market value of apartments sold in Tbilisi stood at US$ 244.8mn, down by 3.2% y/y.
Notably, increase in the primary market size (+9.6% y/y) partly offset reduction in the secondary market size (-14.2% y/y).
Rent
In Oct-23, rents for apartments in Tbilisi decreased slightly by 0.4% m/m, however still remained elevated in annual terms (up by 24.7% y/y in US$).
Rents started to retreat since Mar-23 and decreased by 5.7% by Oct-23. The rents are expected to continue downward trend in the near future.
Construction permits
The volume of issued permits reached a record high in 10M23, which is explained by strong demand and regulations.
The area of issued construction permits increased by 41.1% y/y. On the other hand, the number of issued permits increased by 17.3% y/y in 10M23, which highlights significant increase in the average size of projects.
