Real estate prices are constantly changing, if you own an apartment today, you are lucky because you own an asset whose price is increasing daily. The total number of apartments sold in the first quarter of 2024 decreased by 2.7% year-on-year, which was partially due to the reduced number of apartments remaining for sale. Georgian citizens create the biggest demand in Tbilisi real estate market, which accounts for 85% of total sales. In addition, citizens of Russia and Israel have a significant share of 4% in total sales. In today's market situation, we can say that there is a strong demand for real estate. Almost half of the projects starting in 2023-24 are already fully sold. In addition, only 18% of apartments are left for sale in projects that will be completed in 2024.

Number of apartments sold and market size

In the first quarter of 2024, a total of 9,506 apartments were sold in Tbilisi, which is a 3% decrease compared to the first quarter of 2023. It should be noted that in the mentioned quarter real estate worth 717.4 million USD was sold (+2.5% y/y and - 2.4% y/y, respectively). In new projects, a 4% increase in transactions was recorded, while in old projects, compared to the first quarter of 2023, the figure decreased by 16%. Weighted average selling price of newly built apartments in Tbilisi in the first quarter:

• In the suburbs it increased by 8%;
• In the broad center, it decreased by 3%;
• And no change was observed in the city center.

As for older apartments, their weighted average selling price in the first quarter of 2024 increased by 10% in the suburbs and the wider center, and by 7% in the city center.

The cost of the apartment

According to the National Statistics Service, compared to the previous quarter, the residential real estate price index (RPPI) increased by 1.1%, and the annual growth of the index was 13%, which is 41.3% higher than the average of 2020. In the first quarter of 2024, the median price of 1 m2 in the segment of newly built (completed) housing is as follows:

• Mtatsminda - 5578 GEL;
• Vake - 4866 GEL;
• Saburtalo - 3837 GEL;
• Krtsanisi - 3585 GEL;
• Chugureti - 3473 GEL;
• Didube - 3446 GEL;
• Nadzaladevi - 3383 GEL;
• Isani - 3338 GEL;
• Gldani - 3200 GEL;
• Samgori - 3041 GEL.
  
  

Rent

In the first quarter of 2024, the rent of an average-sized apartment in Tbilisi amounted to USD 9.9 per square meter, which is a monthly decrease of 0.2%. It should be noted that from December 2023 onwards, the trend of the average rent of an apartment continues to decrease.

Building permits

The amount of construction permits issued in Georgia in the first quarter of 2024 increased by 13.5% and includes 2,492 declared permits. A total of 2,314.6 thousand square meters of construction permits have been issued, which is a 37% increase compared to this period of 2023. 74.3% of issued permits come from 4 regions of Georgia:

• Tbilisi - 48%;
• Kvemo Kartli region - 10.8%;
• Mtskheta-Mtianeti region - 7.9%;
• Kakheti region - 7.6%.

It is a noteworthy fact that in the first quarter of 2024, permits were issued for the construction of multifunctional residential complexes, shopping facilities, hotels, industrial enterprises, agricultural facilities and other buildings.

Exploitation

In the first quarter of 2024, 841 facilities were commissioned, which is 22.1% more than the corresponding period of the previous year. The total area of ​​facilities put into operation is 805.1 thousand square meters, which is a 49.2% increase compared to the first quarter of the previous year. More than half of the commissioned facilities come from 4 regions of the country, 39% from Tbilisi, 14.6% from Mtskheta-Mtianeti, 11.7% from Kakheti and 9.3% from Imereti region.