Real Estate Prices Index

Details: Created: 01 May 2017

With a total of 21 611 property sales, Georgian real estate market in Q1 2017 grew by 6.1% (YoY).

194 new buildings with total area of 301.1 thousand sq.m were completed in Tbilisi during Q1 2017.

Mtatsminda with USD 1 061 per sq.m remained the most expensive district of Tbilisi.

At USD 720 per sq.m (Average of Q1 2017) Batumi real estate market remained twice as expensive as Kutaisi market at USD 354 per sq.m.

Learn more about real estate market from our Real Estate Laboratory report, jointly produced with TBC Bank.

Read the full article

Details: Created: 07 March 2017

In 2016, GEO real property market grew substantially. With a total of 89 120 transactions, the market this year surpassed 2015 by 20.2%. The highest number of sales was registered in AUG-16 & DEC-16, with 8 076 and 8 099 units respectively.

In 2016, 604 new residential buildings with total area of 1.2 million sq.m & 161 new commercial buildings with total area of 0.3 million sq.m have been supplied to the real property market. This represents annual growth of 54.3% by units & 86.8% by area for residential and 12.2% by units and 12.5% by area for commercial real property supply.

Sales Price Index & Rental Price Index for residential properties remained relatively stable throughout 2016, continuously lagging behind the same indices for 2015.

Learn more about real estate market from our Real Estate Laboratory report, jointly produced with TBC Bank.

Read the full article

Details: Created: 14 December 2016

Tbilisi real property market slowed down, but with 3 199 market transactions recorded in October 2016, it remains much more active as compared to October 2015.

During the last 10 months (January-October, 2016) 605 new buildings with total area of 1 202 828 sq.m have been supplied to the real property market. This represents 53.6% and 74.2% growth, respectively, over the same period last year.

Sales Price Index and Rental Price Index for residential properties remained relatively stable, while Average Sales Price displayed signs of recovery slightly surpassing Average Sales Price in October 2015. Average Rental Price continues its revival after slowdown of August 2016.

Learn more about real estate market from our Real Estate Laboratory report, jointly produced with TBC Bank.

Read the full article

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Real Estate Methodology

According to the best global practices, residential and commercial real estate price indices are calculated using several measures, namely the Laspeyres index or the Paasche index. Another popular measure, the Fisher real estate index is a combination of the two. These indices heavily depend on the available sample and do not take into account sample volatility across time (for example, the quality of purchased units in the sample may increase over time, which will be reflected in higher prices). One way of remedying this issue is to construct a standardized real estate unit in each time period (using a hedonic regression technique) and to use this unit to obtain quality-adjusted indices. The latter indices are called the Laspeyres hedonic imputation index and the Paasche hedonic imputation index (Handbook on Residential Property Price Indices, Eurostat Methodologies and Working Papers, 2013). Read More