Sales of apartments down in all districts of Tbilisi
BAKU, Azerbaijan, Sept.14
By Tamilla Mammadova – Trend:
Sales are down in all Georgian districts from January through August 2020, with the sharpest declines of sold units observed in Chughureti (-47 percent year-on-year), Saburtalo (-44 percent year-on-year), and Krtsanisi (-41 percent year-on-year), Trend reports with reference to TBC Research Group at Georgian TBC Bank.
Notably, for seven months of 2020, the construction area was up in the majority of districts, except Didi Dighomi (-22 percent year-on-year), Samgori (-29 percent year-on-year), and Vake (-48 percent year-on-year).
After the sharp drop due to the COVID-19 pandemic in April and May, the dynamics of residential real estate transactions have considerably picked up, underpinned by the reopening of the economy by the end of May and activation of the government development stimulus program at the beginning of July.
In July and August of 2020, there were a higher number of transactions compared to the same period of 2016 and 2017, but lower than in 2018 and 2019.
In August of 2020, Tbilisi residential market featured 16,000 transactions, encompassing a total of 1.1 million Sqm area, down by 35 percent and 34 percent year-on-year, respectively.
The 9,900 units, encompassing 682,000 Sqm areas sold in 2020 were new apartments, while 6,200 units, covering 415,000 Sqm areas sold in 2020 were old apartments.
New apartments account for the larger share of transactions in Tbilisi. The proportion started to marginally decline post-May, but reversed in August, up to 65 percent on the back of the subsidy program.
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