Real Estate Market Highlights | January-March 2020

In comparison to Q4 2019, the Georgian real property market contracted by 21.2% in Q1 2020 (from 34,602 units sold in Q4 2019 to 27,273 in Q1 2020) while an annual decrease was observed at 4.3% (YoY) compared to Q1 2019.

Tbilisi dominated the real property market with a 42.8% share in total sales in Q1 2020. The Tbilisi market was followed by Kakheti and Adjara, with a respective 12.6% and 8.8% of GEO sales.


In Q1 2020, the Sale Price Index (SPI) for residential properties experienced an increase of 5.8% (QoQ) reaching 1.14 index point (index equals 1 in base period, Q3 2015), while the Rent Price Index (RPI) increased by 3.6% (QoQ) and settled at 0.91 index points.

During this quarter, the Average Sale Price per sq.m. (ASP) varied between 930 USD and 1041 USD per m2 (monthly average), and the Average Rent Price per sq.m. (ARP) was between 7.3 USD and 7.5 USD per m2 (monthly average). The quarterly average is 983 USD for ASP and 7.4 USD for ARP.

For Q1 2020, the ASP in USD increased (YoY) in all districts of Tbilisi. The greatest increases are observable in Chughureti (+20.0), followed by Isani (+17.9%), and Mtatsminda (+16.2%).

The ARP in USD also increased (YoY) in all districts of Tbilisi, with greatest increases in Gldani (32.8%) and Nadzaladevi (21.8%).

In Q1 2020, comparatively the most and least expensive districts by ASP were: Mtatsminda (1,255 USD) and Samgori (624 USD); and by ARP: Mtatsminda (8.8 USD) and Gldani (5.0 USD).


The SPI for commercial properties decreased by 21.2% (QoQ) in Q1 2020, reaching 0.75 index points (index equals 1 in base period, Q3 2015).

The RPI decreased by 4.8% (QoQ) and settled at 0.99 index points.

Throughout Q1 2020, the ASP varied between 1,145 and 1,154 USD per m2, and the ARP between 8.7 and 10.1 USD per m2.

In Q1, the ASP for commercial properties increased by 17.3% (YoY) and reached 1,148 USD per m2. While the ARP increased by 6.1% (YoY), and reached at 9.4 USD per m2.


In Batumi, the SPI for residential property in Q1 2020 increased (+35.5%, QoQ), reaching 1.5 index points. Whereas, the SPI for residential property in Kutaisi decreased by 1.9% (QoQ), and settled at 1.36 index points.

The ASP of residential property in Batumi increased by 9.0%, and decreased in Kutaisi by 9.8% (QoQ), amounting to 837 and 459 USD per m2, respectively.

04 June 2020 19:33