Prices in the residential real estate market in Georgia are still high and this trend will continue. In the first quarter of 2024, the highest price for residential apartments and private houses in the capital is still fixed on Mtatsminda.

According to the National Statistics Service, compared to the previous quarter, the residential real estate price index (RPPI) increased by 1.1%, and the annual growth of the index amounted to 13%, which is 41.3% higher than the average of 2020.

Detailed statistics by districts are as follows:

In the first quarter, a total of 9,824 apartments were sold in Tbilisi, which is a decrease of 3% compared to the first quarter of the previous year. According to the Residential Real Estate Market Review, the market size increased by 3% to $622 million. In the mentioned period, a 4% increase in transactions was recorded in new projects, while in old projects, compared to the first quarter of 2023, the rate decreased by 16%.

Weighted average selling price of newly built apartments in Tbilisi in the first quarter:

• in the outer districts it increased by 8%;
• In the wider center it decreased by 3%;
• And no change was observed in the city center.

As for older apartments - their weighted average selling price in the first quarter of 2024 increased by 10% in the suburbs and the wider center, and by 7% in the city center.

Construction permit issued

According to the data of the National Statistics Service, the amount of construction permits issued in Georgia in January-March 2024 increased by 13.5%, which includes 2,492 declared permits. A total of 2,314.6 thousand square meters of construction permits were issued, which is 37% more than the corresponding period of the previous year. It should be noted that in January-March 2024, permits were issued for the construction of multifunctional residential complexes, shopping facilities, hotels, industrial enterprises, agricultural facilities and other buildings.

74.3% of permits are distributed among 4 regions of Georgia:

• Tbilisi - 48%;
• Kvemo Kartli - 10.8%;
• Mtskheta-Mtianeti - 7.9%;
• Kakheti - 7.6%.

Exploitation

In January-March 2024, 841 objects with an area of 805.1 thousand square meters (49.2% more than the corresponding period of the previous year) were commissioned (22.1% more than the corresponding period of the previous year).

More than half of the commissioned facilities come from 4 regions of the country:

• Tbilisi - 39%;
• Mtskheta-Mtianeti region - 14.6%;
• Kakheti region - 11.7%;
• Imereti region - 9.3%.