Batumi Real Estate Market Slows Down: Sales Drop by 15% Year-on-Year

According to a report published by Galt & Taggart, the Batumi real estate market experienced a slowdown in the first half of 2024, with a total of 7,041 apartments sold—a 15% decrease compared to the same period last year.

Galt & Taggart attributes the decline to several factors, including the market's sensitivity to the gradual outflow of migrants and high interest rates, which have negatively impacted the investment decisions of foreign buyers.

The report also highlights a growing trend of large-scale development projects in areas surrounding Batumi, such as Kvariati, Chiktra, and Kobuleti.

Despite the overall decline in sales, the average price in Batumi's primary market continued to rise, increasing by 2.2% quarter-on-quarter, likely due in part to weaker demand. Prices in the secondary market also saw growth, with new apartments up by 2.7% per square meter and older apartments by 7.7% per square meter, following a slight dip in previous months.

In the second quarter of 2024, the total value of apartments sold in Batumi amounted to $229.7 million, reflecting a 5.1% year-on-year decrease in sales. Meanwhile, rental prices in Batumi rose, driven by seasonality and an influx of tourists.

As land resources in Batumi become scarcer, real estate development has expanded into surrounding areas such as Gonio-Kvariati and Makhinjauri, where 19 and 20 projects are currently underway, respectively. This expansion now extends along the Adjara coastline, encompassing areas like Chakvi, Tsikhisdziri, and Kobuleti, with a total of 29 ongoing projects.

In Kobuleti, the weighted average price in the primary market reached $1,221 per square meter in the second quarter of 2024, an 11% year-on-year increase, driven by the growing supply of premium projects. However, the overall size of the real estate market in Kobuleti decreased by 11.5% year-on-year to $10.2 million, due to the high base effect from the previous year.