The Georgian real estate market experienced significant shifts in 2024, as detailed in the latest review by Galt & Taggart.

Apartment Sales to Foreign Citizens

• The share of Russian buyers declined sharply from 7% to 2% of total apartment sales.
• Conversely, the share of Israeli buyers rose markedly, increasing from 4% to 12%, indicating a growing interest from Israeli citizens in Tbilisi's real estate market.
• The diversification of buyers from various other countries reflects an expanding and dynamic market.

Secondary Market Trends

• In November 2024, 1,669 apartments were sold in the secondary market (both new and old projects), marking a decline of 4.5% year-on-year (y/y) and 9.9% month-on-month (m/m).
• Cumulatively, 18,405 apartments were sold in the secondary market in the first 11 months of 2024, down by 4.9% y/y.

Price Trends

• Primary Market: Average prices increased by 6.6% y/y in November 2024 and 0.4% m/m, with year-to-date growth of +5.3%.
• Secondary Market:
  • New projects: +7.9% y/y.
  • Old projects: +1.6% y/y.
• Significant price disparities were observed within some districts, driven by differences in amenities, property conditions, and developer reputation.

Market Value

• The total market value of apartments sold in Tbilisi in November 2024 was $282.6 million, up by 18.2% y/y.
• For the first 11 months of 2024, the total market size increased by 5.5% y/y, reaching $2.8 billion.

Segment Trends

• Medium-sized apartments (51-80 m²) continued to dominate the market, driven by affordability and rental demand.
• The share of budget apartments (priced below $1,000/m²) declined due to rising prices.

Rental Market

• Rent prices remained stable at around $10/m², down from a peak of $11.8/m² in March 2023.
• In November 2024, the average rent for a typical apartment (50-60 m²) was $9.9/m², reflecting a continued moderation in rental rates.

Key Takeaways

The Tbilisi real estate market in 2024 demonstrated resilience and adaptability amid changing buyer demographics, stabilizing prices, and a slight decline in transaction volumes. Despite challenges, the market remains robust, supported by increased diversification and demand for medium-sized apartments.

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