Real Estate
Posted: 2 months ago

In February 2024, Tbilisi Sees $258.8 Million in Apartment Sales, Fueled by Primary Market Growth

Tbilisi's real estate market saw the sale of 3,444 apartments in February 2024, marking a modest year-on-year increase of 0.9% following a 6.3% annual increase in January, as reported by Galt & Taggart in their February 2024 review.

This growth was propelled solely by a surge in transactions within the primary market, which saw an 11.8% year-on-year increase. Conversely, the secondary market experienced a 7.5% decline in sales compared to the previous year. The downturn in the secondary market is attributed to the end of speculative buying and rental periods, influenced by a gradual reduction in rental prices and, subsequently, yields.

Nearly half of the apartment sales in Tbilisi during February 2024 (49%) occurred in the Didi Digomi (up 17% year-on-year), Samgori (up 11.5% year-on-year), and Saburtalo (down 8.2% year-on-year) districts. Notably, sales dwindled in Tbilisi's central districts, Vake (down 11.2% year-on-year) and Mtatsminda (down 35.9% year-on-year). Market trends remained consistent with medium-sized apartments (51-80 m^2) dominating sales due to their affordability and rental convenience, while the budget segment's share ($501-800/m^2) declined due to escalating prices.

The primary market sustained its upward price trajectory in February 2024, showing a 0.8% monthly and 16.5% annual increase. In contrast, the secondary market witnessed a downturn, with new and old projects seeing a monthly price decrease of 4.1% and 2.2%, respectively.

Overall, February 2024 apartment sales in Tbilisi amounted to $258.8 million, indicating a 4.9% year-on-year growth. This increase was primarily driven by the primary market, where a combination of heightened transactions and rising prices contributed significantly to the growth.