"Galt & Taggart" conducted real estate market research. The investment bank interviewed 15 system developers and analyzed the dynamics of sales in their 65 current projects.

In 2024, they expect stabilization of real estate sales prices, and a 20-25% decrease in rent prices. "Galt & Taggart" conducted real estate market research. The investment bank interviewed 15 system developers and analyzed the dynamics of sales in their 65 current projects.

As the senior analyst of Galt & Taggart Kakha Samkurashvili told BusinessPartner, according to the research, the demand in the Tbilisi real estate market is divided into two main categories, namely - need-based purchase and investment purchase.

"Real estate in the country remains an important investment asset, therefore, the demand for it is constantly growing. However, in parallel with the positive trend, there are also certain threats in the real estate market, which are related to the statistics of construction permits issued for residential buildings. Their volume reached a record high in 10 months of 2023, and if this permitting trend continues, the issue of oversupply may become relevant in the medium term. However, as of today, 95% of the apartments in the projects of the interviewed developers, which will be completed in 2023, are sold, therefore, there is no threat of oversupply today. It should be noted that the largest number of apartments are sold in Saburtalo, where the supply rate is also high," Kakha Samkurashvili said.

He also talked about real estate sales prices and said that in all districts of Tbilisi it has increased significantly, and currently, the minimum bid price in developers' projects is 900 dollars, while 2 years ago, it was 600 dollars.

"As far as forecasts are concerned, we assume that real estate sales prices are expected to stabilize in 2024, given healthy demand factors, a potential slowdown in migration, and supply analysis." A noticeable increase in prices began in 2021, which was initially the result of an increase in the prices of construction materials, which was accompanied by an increase in wages and increased demand due to the influx of migrants. Migrants also had an impact on the price of rent, which almost doubled from March 2022, although this year it began to decline and became cheaper by 6 percent compared to the peak level," said the senior analyst of Galt & Taggart.

According to him, the price of rent may even decrease by 20-25% in 2024.

For information, in October 2023, 3,377 apartments were sold in Tbilisi. Compared to the previous month, i.e. September, transactions increased by 13%.

source kommersant.ge