The real estate market demonstrated considerable sensitivity to the political crisis
"“The decline in demand has made it increasingly difficult to rent out apartments or flats intended for tourist use. Our company anticipated this trend, as experience has shown that the real estate market is highly sensitive to political developments in the country. We remain hopeful that market activity will recover and return to previous levels”, Ekaterine Chigladze stated.
She noted that over the past month, demand for buying, selling, and renting properties has dropped significantly. Since her company operates primarily in Old Tbilisi, changes in demand are felt immediately in this area.
“Recent protests and political unrest in Tbilisi have adversely affected the real estate market. Buyers have halted purchases, rental demand has nearly vanished, and numerous deals have collapsed due to a loss of confidence. There have even been instances where European investors withdrew plans to invest in Georgia. Conversely, some current apartment owners in Tbilisi are now seeking to sell their properties,” explained the founder of Kedaro Group, a real estate management firm featured by GBC.
For context, in May 2024, the weighted average price of newly constructed apartments in Tbilisi declined by 0.5% in the city center, while the wider center and suburbs saw increases of 8% and 14%, respectively.
According to recov.ge, in the same period, the weighted average price of older apartments dropped by 1% in the city center but rose by 5% and 11% in the wider center and suburbs, respectively.
Transaction volume for new developments decreased by 4% in May 2024, while older projects experienced a sharper decline of 22% compared to May 2023.