Tbilisi Residential Real Estate Market Records 15% Growth - TBC Capital
The Tbilisi residential real estate market demonstrated notable growth in November 2024, with 3,560 apartment transactions recorded. While this reflects a 3% decline compared to October 2024, the annual growth rate reached 10%, according to TBC Capital's monthly report on Tbilisi's residential real estate market.
Cumulatively, the number of transactions over the first 11 months of 2024 surpassed the same period in 2023 by 2%. The market volume in November totaled $290 million, marking a 15% increase year-on-year, despite a slight dip in sales prices.
The average selling price in November stood at $1,247 per square meter, up 4% year-on-year but down 0.4% from October. In contrast, rental prices averaged $11.5 per square meter, reflecting an 8% decline compared to November 2023, while remaining stable month-on-month. Residential real estate yields in Tbilisi were recorded at 9.7%, showing a year-on-year decrease of 1.3 percentage points.
During the first 11 months of 2024, permits were issued for the construction of 1.2 million square meters of residential space, a 6% drop compared to the same period last year.
In November, sales of new apartments surged by 40% annually, with 846 transactions recorded—a 10% increase from the previous month. Old apartments accounted for 2,714 transactions, showing a modest 3% annual growth but a 6% monthly decline. The share of new apartments in total sales reached its highest point this year at 24%.
The average price for new apartments increased by 9% annually but decreased by 3% month-on-month. Prices for old apartments saw a 5% annual increase.
Apartments sized between 50 and 75 square meters remained the most in-demand, representing 42% of total sales in November. However, this figure decreased compared to both the previous month and the same period last year. The share of larger apartments exceeding 125 square meters remained steady at 4%, a 1-percentage-point decrease from November 2023.
Transactions in the premium price segment (>$1,500 per square meter) accounted for 23% of total sales, a 5-percentage-point increase compared to the same period last year.
The Tbilisi real estate market's performance highlights a robust demand for both new and old apartments, with a significant shift toward higher-priced properties.
