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Georgia’s Real Estate Market Rose by 20.2% in 2016

The fourth report has been published as part of Real Estate Laboratory (REM Lab), a joint project of TBC Bank, ISET research institute and JumpStart.

In 2016 Georgia’s real estate market recorded a significant upturn (up 20.2% year on year) and the number of transactions marked 89 120 units.

Tbilisi real estate market also increased by 37.5% and its ratio in real estate sales made up 38.6%. The number of transactions totaled 34 440 ones in the capital city. The month of December was particularly active with 3 593 transactions.

Excluding Tbilisi, in 2016 Georgia’s real estate market rose by 11.3%. At the same time, the highest ratio was registered for Kakheti Region with 12% and Ajara with 9.6%.

Vake, Saburtalo and Samgori districts were leaders among Tbilisi districts: Vake – 6 892 transactions with 20%, Saburtalo – 5 909 transactions with 17.2% and Samgori – 3 748 transactions with 10.9%.

Supply of new real estate considerably increased on Tbilisi real estate market in 2016.

Number of new buildings rose by 42% and made up 765 units (604 residential buildings and 161 commercial spaces).
Space of new buildings rose by 65.45% year on year and made up 1.4 million square meters (1.16 million square meter real estate and 0.28 million square meter commercial spaces).

In December 2016 residential property  prices index declined by 3.8% year on year, while rental price index rose by 2.1%. At the same time, average price of a square meter real estate  made up 866 USD, while averaged rental made up 7.20 USD.

In 2016 Mtatsminda District was the most expensive zone in the capital city with average price of 1 033 USD. Averaged rental marked 8.37 USD. The lowest average price was recorded in Samgori (547 USD) and the lowest rental was registered in Gldani (4.52 USD).

In December 2016 (compared to the previous month) commercial property  price declined by 11.7% and rental index decreased by 12.5%. At the same time, the averaged price of 1 square meter commercial space made up 1 087 USD and average rental totaled 10.28 USD.