Share of small apartments up in Georgia
BAKU, Azerbaijan, August 1
By Tamilla Mammadova – Trend:
In new apartment segment, medium-sized apartment (51-80 m2) sales were most prevalent and reached 49 percent of total sales in second quarter of 2020 in Georgia, Trend reports via Georgian investment company Galt&Tagart.
The share of the small-sized apartments (18-50 m2) went up to 32 percent in second quarter of 2020 from 28 percent in second quarter of 2019.
In the old apartment segment, medium-sized apartment (51-80 m2) sales were also most prevalent. Importantly, demand distribution by size among old apartments changed slightly with demand for large-sized apartments (81-150 m2 ) diminishing.
Low-price segment was mostly in demand – evidence that low-to-middle-income households drive demand for the housing market. Some 56 percent of total number of apartments sold were in the low-price segment (50 percent in second quarter of 2019), while the premium segment accounted for only 11 percent of total in second quarter of 2020 (13 percent in second quarter of 2019).
Demand was high on medium-sized apartments (51-80 m2) in all districts of Tbilisi, except suburban districts (Samgori, Gldani and Isani), where small-sized flats dominated the sales.
Apartment price spike in April 2020 was a one-off as sales volume was extremely low and average price was biased towards individual premium segment transactions.
New apartment prices were up in April (+8.3 percent year-on-year), down in May (-11.3 percent year-on-year) and June (-9.5 percent year-on-year).
Price volatility was higher in central districts, while remained relatively stable in suburbs in second quarter of 2020.
Weighted average selling prices posted the following trend in second quarter of 2020:
Mtatsminda to $1,346 (+21 percent year-on-year)
Vake to $896 (-6 percent year-on-year)
Sabutalo to $790 (-6 percent year-on-year)
Nadzaladevi to $585 (+7 percent year-on-year)
Gldani to $561 (+6 percent year-on-year).
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