In May-24, the number of sold apartments in Tbilisi stood at 3,197 units, down 7.9% y/y and 0.7% m/m.
Notably, sales have decreased in both the primary and secondary markets. The decline can be attributed to the numerous public holidays in May-24 and domestic political tensions. Unstable environment and subsequent fluctuation of GEL exchange rate, prompted some potential home buyers to postpone their decisions and to wait until the situation stabilizes, in our view. We anticipate a gradual month-overmonth recovery in apartment sales starting from Jun-24, provided stability is maintained.
Cumulatively, in 5M24, 15,920 apartments were sold in Tbilisi, reflecting a 0.8% y/y increase. This growth was driven exclusively by the primary market (+8.1% y/y), while the secondary market experienced a 5.1% y/y decline.
In May-24, over half of registered transactions were recorded in Didi Dighomi, Saburtalo and Samgori districts. Notably, the largest portion of transactions on the primary market, accounting for 24.4% of total primary sales, was recorded in Didi Dighomi.
Other noteworthy features of the market remained unchanged, such as the dominance of medium-sized apartments (51-80 m2 ), due to affordability and the ease of renting, and falling share of sold apartments in the budget segment (<$1,000/m2 ), driven by rising prices.
