Georgia's Batumi sees decrease in real estate transactions
BAKU, Azerbaijan, August 3
By Tamilla Mammadova – Trend:
In the first half of 2020, transactions in real estate decreased by 29 percent year-on-year in Georgian Batumi while the market value decreased by 32 percent, Trend reports referring to the report of Canada-based Colliers International real estate services organization.
"It is important to note that the smaller decrease compared to Tbilisi is due to the increased number of transactions on Batumi residential market in the first quarter of 2020. Looking at June 2020, the market value has significantly dropped by 51 percent year-on-year," the report said.
As reported, unlike Tbilisi, premium class apartments in Batumi appeared to be most exposed class to COVID-19 crisis. In June 2020, the market value of this class has been decreased by 74 percent year-on-year.
The market value of medium-class apartments also decreased significantly - by 66 percent - in Batumi. If in 2019, premium class apartments represented 20 percent of the market, now it has been reduced to 11 percent. Of course this can be explained by the reduced price, however in terms of pricing it is advisable to wait a few months for the stabilized trend to emerge.
"The prices of economy segment residential properties are not expected to change significantly, while the number of transactions in this category is forecast to drop in Batumi. We expect the demand on economy class single-family houses to soar in the isolation period," the report said.
The projections are negative for the medium segment residential market in terms of the number of transactions and prices. Speculative transactions are expected to increase in the medium market due to decreased prices.
"The number of transactions is expected to decline in the premium segment, but we anticipate very little price change in this category. The market of rental properties will be most affected, as both, prices and the number of transactions are expected to drop by the end of the year," the company added.
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