Housing in Tbilisi is in demand: a review of the capital’s real estate market
TBC Capital Bank published data on the dynamics of the real estate market in Georgia. According to the analysis, in December 2022 housing in Tbilisi increased in price by 6% compared to November, and by 28% compared to the values of 2021.
At the same time, the cost of renting fell by 3% compared to November rates. However, despite the slowdown, rental prices in Tbilisi are still high. For example, in comparison with December 2021, rents have increased by 103%. As for the results for 2022, real estate sale prices in the capital increased by 17% and rental rates increased by 77%.
In December 2022 in Tbilisi were concluded transactions for the purchase and sale of 837 apartments in new buildings. This figure is almost 40% less than in 2021. As for the secondary market, there were 1.5% more objects sold than in the previous year.
Compared with November, in December 2022, the increase in sales of new apartments amounted to 7.7%, and the growth in the secondary market is fixed at 2.3%. Such dynamics indicate a high demand for real estate in the capital, especially for new buildings.
As for the most popular areas of Tbilisi, the first place is occupied by Saburtalo, where the volume of transactions increased by 18%. The second place was shared by Didi Digomi and Gldani with an index of 16%. Such dynamics are reflected in the cost of real estate, compared to the same period in 2021, it was growing in all areas of Tbilisi. The leader here is Gldani, where objects increased in price by 36%. It is followed by Chugureti, where prices rose by 35%, and Mtatsminda, where prices rose by 34%.
The construction sector also stimulates activity in the real estate market. In 2022, Georgia issued 72% more building permits than in 2021. In total, the authorities issued 10,822 permits, which involves the construction of facilities with a total area of 7.4 million square meters.
More than 77% of the issued permits for the construction of real estate are located in 4 regions of Georgia. Among them, Tbilisi is in the lead, where about 52% of the projects will be realized. This is followed by Mtskheta-Mtianeti, Kvemo Kartli, and Imereti regions.
Most of the permits were issued for residential complexes, hotels, and commercial facilities.
For the year 2022, also, the country built 2654 objects, which is more than 13% higher than the results of 2021. About 37% of the total amount of real estate is located in Tbilisi, and 12% is in Mtskheta-Mtianeti.