BAKU, Azerbaijan, June 8
By Tamilla Mammadova - Trend:
The Georgian real property market development slowed down by 21.2 percent in first quarter of 2020 compared to fourth quarter of 2019, while an annual decrease was observed at 4.3 percent (year-on-year) compared to first quarter of 2019, Trend reports referring to ISET-PI, a think-tank based at International School of Economics of Tbilisi State University.
Tbilisi dominated the real property market with a 42.8 percent share in total sales in first quarter of 2020. The Tbilisi market was followed by Kakheti and Adjara regions, with respective 12.6 percent and 8.8 percent of sales.
In first quarter of 2020, the Sale Price Index (SPI) for residential properties experienced an increase of 5.8 percent (quarter-on-quarter) reaching 1.14 index point, while the Rent Price Index (RPI) increased by 3.6 percent (quarter-on-quarter) and settled at 0.91 index points.
During this quarter, the Average Sale Price per sq.m. (ASP) varied between $930 and $1,041 per square meter (monthly average), and the Average Rent Price per sq.m. (ARP) was between $7.3 and $7.5 per square meter (monthly average). The quarterly average is $983 for ASP and $7.4 for ARP.
In the first quarter of 2020, the ASP in USD increased (year-on-year) in all districts of Tbilisi. The greatest increases are observed in Chughureti (+20 percent), followed by Isani (+17.9 percent), and Mtatsminda (+16.2 percent) districts.
The ARP in USD also increased (year-on-year) in all districts of Tbilisi, with the greatest increases in Gldani (32.8 percent) and Nadzaladevi (21.8 percent) districts.
In first quarter of 2020, comparatively the most and least expensive districts by ASP were Mtatsminda ($1,255) and Samgori ($624); and by ARP - Mtatsminda ($8.8) and Gldani ($5) districts.
The SPI for commercial properties decreased by 21.2 percent (quarter-on-quarter) in first quarter of 2020, reaching 0.75 index points. The RPI decreased by 4.8 percent (quarter-on-quarter) and settled at 0.99 index points.
Throughout first quarter of 2020, the ASP varied between $1,145 and $1,154 per sq.m., and the ARP between $8.7 and $10.1 per sq.m.
In first quarter of 2020, the ASP for commercial properties increased by 17.3 percent (year-on-year) and reached $1,148 per sq.m. While the ARP increased by 6.1 percent (year-on-year), and reached at $9.4 per sq.m.
In Batumi, the SPI for residential property in first quarter of 2020 increased (+35.5 percent, quarter-on-quarter), reaching 1.5 index points. The SPI for residential property in Kutaisi city decreased by 1.9 percent (quarter-on-quarter), and settled at 1.36 index points.
The ASP of residential property in Batumi increased by 9 percent, and decreased in Kutaisi by 9.8 percent (quarter-on-quarter), amounting to $837 and $459 per sq.m., respectively.
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