Overview of prices for buying and renting homes
Foreigners’ interest in Georgian real estate has been growing for the last ten years. After the start of the Covid-19 pandemic, the market was forced to put the brakes on. Nevertheless, it did not take long to recover: the indicators of the second half of last year were positive, and the trend has continued in early 2022.
Is there demand? Yes, and it is increasing.
At the end of 2021 there was exceptional activity on the real estate market in Tbilisi. January 2022 was even more productive.
According to Oldypak LP property 2022 report, for the first month of the year 2,503 buyers made deals with real estate in the capital of Georgia, which is 30% more than a year earlier.
The increased number of sales can be partly explained by the difficult sanitary and epidemiological situation at the beginning of last year.
In January, buyers disassembled new buildings. The primary market accounted for 64% of all transactions, which is 19.6% more than a year earlier. Interest in the secondary market also increased significantly: +53% compared to the results of January 2021.
The most demanded type of real estate is apartments up to 70 sq. m.
Where do they buy apartments? Top 3 popular districts in Tbilisi
In some areas of Tbilisi in January, there was a rush: the number of real estate transactions jumped by 50% or more, compared with the results of last year.
Top 3 locations where there was a big increase in sales
- Chugureti (+86.7%)
- Samgori (+59.4%)
- Vake (+55,7%)
However, the districts of Saburtalo (19.5% of the total number of transactions) and Didi Digomi (17.3%) still have the highest number of transactions.
What about prices? Growth reaches 17% per year
Overall, the average selling price of real estate in Tbilisi increased by 0.5% in January 2022 and by 3.2% compared to the same month last year. In short, the growth across the city is insignificant.
Chugureti, a central neighborhood with good infrastructure, whose main development was formed in the XIX century, stands out of the general trend. At the end of January, the prices for local apartments went up by 17% and the number of deals jumped by 87%.
The most expensive locations in Tbilisi for buying an apartment are the central districts of Mtatsminda, Vake and Chugureti. Here the average cost per square meter has already gone beyond $ 1 thousand. At the same time in the Georgian capital are still a lot of locations where buyers pay less than $ 800 per square meter.
And what about rents? Pandemic in retreat.
Recovery of the rental market began in the second half of 2021, the positive dynamics continued in early 2022. Over the month, the average asking rate increased by 2.2%, and over the year by 18.1%.
According to Oldypak LP property 2022 report, rents in Tbilisi in the coming months will continue to rise in price, because the impact of the pandemic on this sector has come to its logical conclusion.
Renting in Tbilisi is going up faster than apartment prices, which leads to an increase in the profitability of properties. In January 2022, rental yields reached 8%, up 1% year-on-year.
The short-term rental sector is also gradually recovering. In January 2022, the average prices have almost reached the pre-crisis level (-3%). Nevertheless, the number of active listings is still 41% lower than before the coronavirus (2019).
At the beginning of 2022, the tourism sector still lagged behind pre-crisis levels, but the dynamics are already positive.
Oldypak Capital lp 