Real estate price hikes are not expected until the end of the year, Leo Chikava, a representative of the real estate company Colliers, says.
According to him, in August 2023, real estate sales in Tbilisi declined by 10% compared to last August while compared to January 2023 - by 4%.
Compared to the same period of 2022, real estate prices increased by 19%, further price hikes are not expected until the end of the year. At the same time, prices most likely will not go down. Until the end of the year, real estate prices will remain stable,” he notes.
In Leo Chikava’s words, unnatural increase in demand in 2022 was the main reason for the stability of real estate prices.
“In 2022, demand in Tbilisi rose by 24%, in Batumi - by 36%. This is a significant growth that was not natural. If before 2022, 15,000-20,000 apartments were built per year, in 2022 - already 25,000. In 2023 this figure returned to normal and stood at 15,000 that indicates a decrease in demand for housing,” - a representative of the real estate company says.
He adds that an increase in demand for real estate was caused by the inflows of migrants from Russia, now when migration rate is stable and explosive growth is not expected, real estate prices will go down.
Whether housing prices will increase or not?