Real Estate Prices Index

Details: Created: 08 November 2016

Tbilisi real property market continues to grow steadily. Total sales grew to 3331 units in September 2016 to hit a new monthly record. Market rose also in July 2016 followed by slight decrease in August 2016.

Sales Price Index and Real Price Index for residential property have been increasing during July-September 2016. While Average Sales Price continued to trend downward, Average Rental Price recovered slightly in September 2016 after two months of continuous decline.

Sales Price Index for commercial property has been increasing during July-September 2016, while Rental Price Index has decreased substantially since July 2016. Average Sales Price has been recovering fast from July`s slump, and Average Rental Price also increased in September 2016 after sharp fall in the previous month.

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

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Details: Created: 01 September 2016

Average Sale Price (ASP) for residential properties has fallen consistently over last 3 months, to its current level of USD 836 [GEL 1829]. ASP rose to a year-high of USD 900 [GEL 2159] in December 2015 and fell to a year-low of USD 836 [GEL 1940] in August 2015 and June 2016. Appreciation of GEL since February 2016 exerted downward pressure on prices expressed in local currency decreasing at faster rates compared to prices in USD.

Sales Price Index for residential property reached 1.034 in June 2016, which represents 0.5% increase MoM and 1.8% decrease YoY. Therefore, observed decrease of ASP for last month is reflection of lower quality of supply rather than deterioration in market fundamentals.

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

Read the full article

Details: Created: 23 September 2015

• Average sale price on residential real estate starts to increase in dollar terms during the last three month of 2015.
• Fisher index on rental prices of residential property falls drastically, decreasing annually by more than 18% terms in October 2015.
• Chughureti is the most expensive district for buying and renting commercial property in Tbilisi.

The average residential rental price first fell to 7.46 USD per m2 (a historical minimum since the start of the study) in October 2015, and after a slight peak in the following month reached 7.66 USD per m2 by the end of the year. Download the full report.

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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