After the reduction of prices in 2021, compared to the previous year 2020 , the sale price of real estate found its upward trend again and increased from 110.7 index points in January 2021 to 113.5 in March 2021. However, in 2021, the average sale price of real estate in Tbilisi in January 2021 increased from $942 per square meter to $949 in March of that year. Rental prices have been declining from $5.9 per each square meter in January to $5.8 in March.
Highlights of the Georgian real estate market
In first quarter of 2020 on average, the most expensive districts by ASP were Mtatsminda-Sololaki (1,402 USD), Vera (1,215 USD), and Vake-Bagebi (1,159 USD), while the cheapest district was Lilo at 419 USD per m2. By ARP, the most expensive districts in Q1 2021 on average were Tsavkisi-Shindisi-Tabakhmela (8.8 USD), Mtatsminda-Sololaki (7.7 USD), and Kiketi-Kojori (7.0 USD).
Commercial property prices
In 2021, the average price of commercial real estate in Tbilisi has increased by 12.0% compared to the last year, but the rental price index for commercial real estate has continued to decrease and has decreased by an average of 2.8% compared to the first three months of 2021.
Tbilisi and Georgia real property sales
As we said in previous articles, according to Kakhaber Samkurashvili, a senior real estate analyst, in 2021, the Batumi market will also be heavily dependent on apartments bought by foreigners. We are witnessing a sharp decline in sales in the Batumi market, and the situation in this market will not improve significantly until the tourism industry takes a positive trend. However, in 2021, the real estate market in Batumi decreased by 7.4% and in Kutaisi increased by 16.5%, resulting in real estate in Tbilisi dominating the Georgian real estate market with 39.3% of total sales.
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