The National Bank of Georgia will start publishing residential real estate price and rent indices, along with a capitalisation rate, the body said.

The NBG noted it had been collecting regular data on residential real estate prices and rents since 2006, which were key indicators of financial stability, and added that the availability of the historical record would provide market participants, analysts, researchers, and other interested parties with timely relevant information.

From a methodological point of view, the indices of residential real estate prices and rents cover two major urban segments, the Saburtalo and Varketili districts of Tbilisi, the Bank emphasized.

"The indices are obtained from a regular collection of offer prices for typical one-room and three-room apartments in these segments from open sources, averaging them, and then calculating the result relative to a base period. Capitalization is calculated as the ratio of the annualized average rent of a given month to the average price of the same month”, the NBG said.

The body also added that the residential real estate price and rent indices, along with the capitalization rate, would be published monthly on the NBG’s website.