BAKU, Azerbaijan, Sept. 10
By Tamilla Mammadova – Trend:
After a moderate decrease in 1Q2021, on average, the Rent Price Index (RPI) for commercial properties increased significantly (11.9 percent) in 2Q2021, compared to the previous quarter in Tbilisi, Trend reports via the ISET-PI, a think-tank based at the International School of Economics of Tbilisi.
During 2Q2021, the Average Sales Price (ASP) for commercial properties increased from $1,004 per m2 in April 2021 to $1,018 in June 2021 (monthly average). However, the ASP for commercial properties decreased by 3.5 percent compared to the previous year. While the Average Rental Price (ARP) rose from $7.6 per m2 in April to $8.5 in June 2021 (monthly average). Moreover, the ARP for 2Q2021 increased by 9 percent on average compared to the previous year.
In comparison to 1Q2021, the GEO real property market expanded by 15.9 percent in 2Q2021 (from 30,825 units sold in 1Q2021 to 35,735 units in 2Q2021), and held an annual growth of 140 percent (year-on-year) compared to 2Q2020. This annual increase was largely triggered by a significant upsurge in April 2021 sales (from 649 units sold in April 2020 to 12,515 in April 2021).
Tbilisi dominated the real property market with a 38.5 percent share in total sales in 2Q2021 (the capital held 39.3 percent of total sales in 1Q2021). The Tbilisi market was followed by Adjara and Kakheti, with 11.9 percent and 10 percent of GEO sales, respectively.
In 2Q2021, Racha-Lechkhumi & Kvemo Svaneti experienced the highest increase (year-on-year) in sales (312 percent), followed by Adjara (257 percent) and Tbilisi (153 percent). In total, the market outside the capital grew by 133 percent (year-on-year).
More than half (51.3 percent) of GEO sales were registered in the three largest cities: Tbilisi, Batumi, and Kutaisi.
---
Follow the author on Twitter: @Mila61979356