How much have apartments gone up in price in Georgia, and in particular in Tbilisi, in 2021? How much profit did they bring to the owners? The answers are in the article. | Sea Inside
Covid-the restrictions imposed to stop the coronavirus pandemic have affected the economy all over the world, including in Georgia. The increase in the cost of building materials, which the construction market experienced last year, was added to the external factors acting on the real estate market: rebar almost doubled in price, prices for wood, concrete, brick, cement, sand, paints, plastic windows, electrics soared. On average, the prices of materials have risen by 40%. Analysts suggest that in 2022, building materials may rise in price by another 15%.
This has affected the price per square meter – after all, materials account for about a third of its market value. Developers have already raised prices. According to the Statistics Service, real estate in Tbilisi in 2021 has risen in price by 10% compared to the previous indicator. Today, the average cost of an apartment in a new building in the center of Tbilisi is $1200–$1400/sq.m. You can buy an apartment in residential areas for $700-$800/sq.m.
Developers note a new trend – the demand for apartments in central areas has gone down, and in residential areas has risen. If earlier they cost about $400-$500/sq.m, now they cost $600–$800/sq.m.
Current price for real estate in Georgia:
- economy segment – $600-$900/sq. m (without repair)
- comfort class – $900–$1200/sq. m (without repair)
- premium class – $1600-$2200/sq. m (turnkey)
Another trend that experts note is that private houses and townhouses have become more in demand. Large families are especially interested in them. Usually foreigners purchase real estate in Georgia either for the purpose of investment and earnings, or for relocation or immigration, or for seasonal residence.
Since the end of February, there has been an increased demand. Experts expect a rise in the price of real estate in Tbilisi in 2022 against the background of continuing demand. On average, it becomes more expensive by 10-15% annually.Analysts advise those who plan to buy an apartment in Georgia not to delay.
Sea Inside managers help foreign citizens to choose and arrange real estate in Tbilisi and Batumi. We work without commission.