Forecasting Real Estate Prices of Georgia
In 2020, sales of apartments in Georgia will be reduced by about 30%. This is stated in the study of TBC Capital "Impact of COVID-19 on the Georgian economy." According to the same study, prices will fall by about 10%.
According to the research, in April 2020, real estate sales fell by 90% year-on-year. Already in 2021, partial demand is expected to return, while transactions will be reduced by about 10% compared to 2019, and prices will be reduced by 5%.
According to the report, in 2019, a total of 33,404 apartments were sold in the capital, of which 20,276 - new apartments, 13,128 - old ones. According to the authors of the study, the total number of apartments sold in the capital in 2020 will be reduced to 23,500, in 2021 - to 30,000, and the volume of real estate sold in 2022 will exceed the figure of 2019 and will reach 35,000.
However, as stated in the study:
- The partial suspension of new construction will lead to more demand-supply in 2021-2022;
- The image of a safe country in Georgia may accelerate improvement in Batumi, where real estate is sold mainly for investment purposes;
- Rapid return of international demand is important: in 2016-2019, foreigners bought about 10% of apartments in Tbilisi and more than 40% in Batumi;
- The state is actively working on stimulus programs in the sector for the first and second market, which can improve the dynamics.