This Email address is already subscribed
Thanks For Your Subscription
Categories you have subscribed
Aug 15, 2019
Residential Real Estate Sector Analysis – H1 2019 Update
- The number and the area of apartments sold in H1 2019 broadly mirrors the same period of the previous year, with a total sales of 16,296 apartments constituting 1,119,000 Sqm in living area.
- In H1 2019, new apartment sales kept growing, up 5.4% YoY, whereas the sales of the old apartments continued to decrease, down -7.1% YoY, driven by decline in transactions of relatively smaller apartments.
- The mortgage portfolio is on growth track, currently up by 3.9% on FX effect adjusted basis (6.1% adjusted for seasonality) since the beginning of the year.
- After the initial steep decline, the interest rates on GEL mortgage loans have leveled off since May at 8.9%.
- The overall price level of apartments has increased in GEL (up 2.6%), but decreased in USD (down -1.4%), explained by the depreciation of national currency relative to USD.
- There are signs of revival in new construction permits issued for residential apartment blocks in Tbilisi, with 91 new apartment block permits issued, comprising 417,000 Sqm of living area.
- The share of foreign buyers of Tbilisi residential real estate is at 8% of total sales by the end of June 2019. Throughout 2018, this share was 13%.