In June 2024, Tbilisi residential real estate market experienced a significant slowdown, with the number of transactions standing at 2,903, marking a 20% decrease relative to June 2023. This was the second consecutive month of decline, possibly due to postponed demand, a trend that might continue in the pre-election period, as some individuals might be more reluctant to buy property and choose to postpone their purchases. On a monthly basis, there was an 8% decline observed.
Overall, transactions in the first 6 months of 2024 stand 3% lower compared to the same period of 2023. In June, the asking sale price stood at $1,178, posting a 1% annual growth (-1% MoM). In the same period, the market size was valued at $222 Mln, decreasing by 21% annually.
As expected, the rent price posted a more noticeable decline in June 2024, standing at $11.6, 3% below the figure in the previous month and 8% lower than in the same period of last year. The rental yield in Tbilisi amounted to 10.4%, declining by 0.9 percentage points relative to June 2023. In terms of new constructions, in 6M 2024, permits were issued for residential area of 722 thousand SQM, which is 7% higher than in 6M 2023.
In June 2024, 621 new apartments were sold, decreasing by 22% compared to June 2023. As for old apartments, a total of 2,282 transactions were made, marking a 20% annual decline. Since sales of new apartments decreased more, their share in total sales went down to 21%.
The average sales price for new apartments decreased by 1.8% annually, however the price for old apartments increased by 1.5%. Compared to May 2024, the average sale prices remained basically unchanged.
In June 2024, apartments ranging from 50 to 75 SQM still took the biggest portion (43%) of the total apartments sold, which is a 1pp increase compared to the same period of last year. The flats above 125 SQM took 4% share. In the same period, the share of high price apartments (>1500 $/SQM) in total property sales reached 22% (+5pp, YoY).
