Will Real Estate for Sale in Georgia Drop in Price?
The situation in the real estate market is developing slow - TBC Capital explains this with the expectation that the government will take measures to support the development sector. At the same time, they hope that the gradual opening of the economy and government support measures will help improve the trend.
According to the NBG index, the price of apartments in USD decreased by 3.5% in May compared to February 2020. The price of rent continues to fall in USD, which was 12% less in May compared to February 2020.
TBC Capital points out that the cost of rent is a precursor to a change in the sale price of an apartment, which raises expectations for the housing prices to continue to fall.
“As a result, rental income is declining and in February 8.7%, 8.1% in April and 8.0% in May, and is currently slightly below its long-term trend (8.3%), "- said the investment company.
As for the trend of the last week, as of June 18, the annual decrease of the average 7-day flats sold in Tbilisi was 41%. The decrease is -22% compared to the January-February period.