BAKU, Azerbaijan, May 18
By Tamilla Mammadova – Trend:
Fundamental indicators point to a healthy development market in Georgia, Trend reports citing the report entitled “The Impact of COVID-19 on the Georgian Economy” of TBC Capital at Georgian TBC Bank.
According to the report, in March, the rental income amounted to 8.1 percent, which is close to the value of the long-term trend.
“With the normalization of the situation, activity in the sector will resume. In Tbilisi, the cost of residential real estate is cheaper than in the capitals of several countries such as Sarajevo, Sofia, Bucharest, Riga, Vilnius and Tallinn," said TBC Capital.
"A comparative analysis shows that in the long run, apartment prices have an upside potential,” report said.
It was noted that in Georgia, sales of residential real estate in April 2020 fell by 90 percent year-on-year.
According to TBC Capital, in 2020, transactions are projected to decrease by 30 percent, and in the second quarter of 2020 - by 70 percent.
It is expected that demand for real estate will partially return to normal in 2021.
According to the forecast, the value (in USD) of real estate in Georgia on an annualized basis will decrease by 10 percent.
“Transactions will reduce by about 10 percent, and prices - by 0-5 percent compared to 2019. Georgia’s image as a safe country can accelerate the improvement of the real estate market in Batumi, where real estate is mainly sold for investment purposes. The state is actively working on programs to stimulate demand in the primary and secondary markets, which can improve dynamics," the report said.
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