• The lari depreciation caused a substantial decrease in USD prices of real estate. Average rental prices of residential property reached their historical minimum in March 2015.
• Property sellers are trying to compensate for the price decline by offering better, more expensive housing for sale.
• The lari price increase of rental properties has driven demand away from the central districts of Tbilisi to the nearby suburbs.
Some interesting phenomena can be observed on the residential property Tbilisi market in the period March-May 2015. First, average rental prices continued to follow a downward trajectory. In particular, in March average rental rates reached a historical low of 7.92 USD per m2. At the same time, average sale prices declined to 850.3 USD per m2 in March. Download the full report
Real Estate Prices Index Recent Publications
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Real Estate Market Highlights, #20 | Apr-Jun 2021
The Residential Sales Price Index (SPI) for Tbilisi increased moderately in April and May of 2021, however it decreased slightly in June and amounted to 114.4 index points (equaling 100 in the base period of January 2019). Compared to the second quarter of 2020, the SPI showed an increase in Q2 2021 – with the largest change of 7.9% (YoY) in June 2021. Consistent downward trends in the Rent Price Index (RPI) in 2021 reversed in May… Read More
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Real Estate Market Highlights, #19 | Jan-Mar 2021
After a decline in January 2021 compared to December 2020, the Tbilisi Residential Sales Price Index (SPI) showed an upward trend in Q1 2021, increasing from 110.7 index points in January 2021 to 113.5 index points in March 2021 (the index is equal to 100 in the base period, January 2019). Nevertheless, compared to the first quarter of 2020, SPI showed a decline in Q1 2021, with the largest drop of 2.4% (YoY) occurring in February 2021. Unlike… Read More
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Real Estate Market Highlights, #18 | Jan-Dec 2020
The Tbilisi Residential Sales Price Index (SPI) showed no significant fluctuations from the beginning of 2020; varying between 113 and 114 index points (the index equals 100 in the base period, January 2019). However, the COVID-19 pandemic and consequent economic effect of the lockdown hit the real estate market, resulting in significant deterioration of the SPI, which decreased by 4.1% (MoM) from April to May and a further 2.7% (MoM) from May to June. For the remainder of the… Read More
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Real Estate Market Highlights, #17 | April-June 2020
In comparison to Q1 2020, the GEO real property market contracted significantly by 45.5% in Q2 2020 (from 27,273 units sold in Q1 2020 to 14,855 in Q2 2020) while the annual decrease was observed at 53.6% (YoY) compared to Q2 2019. Tbilisi dominated the real property market with a 36.2% share in total sales in Q2 2020. The Tbilisi market was followed by Kakheti and Kvemo Kartli, with a respective 12.9% and 8.9% of GEO sales. The… Read More
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Real Estate Market Highlights, #16 | January-March 2020
In comparison to Q4 2019, the GEO real property market contracted by 21.2% in Q1 2020 (from 34,602 units sold in Q4 2019 to 27,273 in Q1 2020) while the annual decrease was observed at 4.3% (YoY) compared to Q1 2019. Tbilisi dominated the real property market with a 42.8% share in total sales in Q1 2020. The Tbilisi market was followed by Kakheti and Adjara, with a respective 12.6% and 8.8% of GEO sales. The highest annual… Read More
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