The Georgian real estate
market has seen a price drop in the recent period.
The sharpest decline was observed
in rental prices. The supply on the
market significantly exceeds demand due to the collapse of the tourist season caused
by the closure of borders.
Galt & Taggart research shows
that developers and private investors are gradually adapting to the new,
post-quarantine reality, especially in apartment rentals.
According to the company's
analyst Kakha Samkurashvili, if the tourism sector doesn’t recover, the rental
market will be in an even worse situation than it is now. The real estate
sector is doing better, but still faces some difficulties.
“In May-June, the price of new apartments decreased by 9%
that is quite common and it is too early to talk about it as a
stable trend. in the second quarter of 2020 a 11% decline in rental prices was
observed that is quite natural amid the collapse of the tourism sector, ”he explains.
Samkurashvili expects that the government's program of
subsidizing mortgage loans will allow to reach last year's level of residential
property sales in the second half of 2020. Given the collapse during the
quarantine, sales can decline by 15%.