"If prices are not adjusted, the downward trend in apartment sales will continue," former head of the First Credit Union, founder of Green Investments Givi Korinteli states.
According to him, the downward trend in apartment sales has been observed for a long time that is mainly driven by two factors- a decline in demand for real estate after the migration boom and difficult conditions for taking out mortgage loans.
Note: as per Colliers Georgia data, in April 2025 the weighted average price of newly-built flats in Tbilisi has increased by 12.9 % in the wide centre compared to April 2024, 6.7% growth was observed in the city centre , while in the suburbs 8.1% increase was witnessed. The growth is mostly driven by the primary market, where weighted average price increased by 13.8% citywide (some primary transactions are registered late, resulting in a price growth trend that does not reflect reality.) In the secondary market of newly built apartments, the weighted average price across the city increased by 5.5%.
As of April 2025 in Tbilisi the weighted average price of old flats has increased by 7.5% in the suburbs compared to April 2024, in the city centre 4.4% growth was witnessed, while in the wide centre the weighted average price decreased by 1.5%.
"This process [declining sales] has been going on for a long time. There are two main reasons for this such as migration boom that led to prices and sales growth in 2023, as well as in the first half of 2024, the market is now adjusting. Demand growth was also caused by the well-known events [the Russian-Ukrainian war].
The second reason is the complicated process of obtaining mortgage/construction loans from banks, which continues to this day. This also influenced the situation.
I think that until prices are corrected (for example, until they hit the 2023 level, when prices were artificially inflated), this trend will probably continue. If we evaluate in the context of one year, then I think that a rush demand was observed win the same period of last year when
things didn't go according to plan. Thus, we will probably return to stable sales and the numbers we had before. “In addition, a lot depends on the banks, how mobile they will be in terms of mortgage loans,” stresses Givi Korinteli.
