TBC Capital Renews Research on Residential Real Estate Sector
TBC Capital renews Tbilisi Residential Property Research according to the first quarter transactions of 2019.
On the background of new credit regulations, the research is based on the growing interest of large participants of the sector, to get relevant, reliable and competent information on the sector. The research aims to provide companies and potential investors with periodic information on current market conditions and sectors' development potential.
According to the survey, sales in the first quarter of 2019 have not decreased compared to the first quarter of 2018, they have maintained the same. As expected, sales decrease is likely to be compared with the fourth quarter of 2018, which is partially measured by the spectrum of the market in the last quarter of 2018.
Despite the absence of tangible research, there is a tendency to move from the trend: sales over the first quarter of each year exceed the first quarter of the previous year. The first quarter of 2019 is exception to this.
Sales of January 2019 grew by 6% comparing to previous January, a slight increase of 1% in February and 6% in March, but it is too early to conclude from this dynamic.
In the first quarter of 2019, the sale of newly built apartments has increased, and the older construction of apartments has decreased, which is due to the sale of small size flats in the segment. The mortgage portfolio has grown significantly over the quarter. The number and size of the loans is less than the loans issued in the first quarter of 2018.
As expected, interest rates decrease on new mortgage loans denominated in GEL, which promotes demand.
The average sales price is mostly stable and a slight decrease in comparison with previous quarters. At the same time, the price of newly constructed apartments is slightly higher, and the old built apartments - decreasing.
TBC Capital offers an analysis of the calculation of access to mortgage loans to the reader in an updated study, according to the flat size and price.