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Colliers International: Average Price of New Apartments Drop by 7% Year on Year

The year of 2017 started with positive trends due to quantity of market transactions”,  Nikoloz Kevkhishvili, head of  Colliers International Georgia assessment and research department, said.

The demand for new apartments has risen and the growing number of transactions proves this statement. The first quarter recorded about 200 million USD real estate transactions, Kevkhishvili noted.

“Transactions on new apartments in the first quarter surpassed transactions on old apartments in terms of quantity and value. About 120 million USD transactions were recorded on new apartments.

Prices have declined. A major part of transactions is recorded in Saburtalo District with a 22% market ratio, Kevkhishvili said. Prices have mainly decreased on new apartments, while old apartments are sold for the same prices, he added.

“Prices of new apartments have decreased by about 7% year on year and by 6% compared to 2015. Price reduction was driven by general economic situation and currency exchange rate affect, as well as money transfers from abroad. Prices have declined rather on new apartments, because developers make prompt reactions to weak market stimulating factors and price reduction was compensated by growth in number  and value of transactions”, Nikoloz Kevkhishvili said.