Real Estate Market Highlights, #18 | Jan-Dec 2020
27 April 2021

The Tbilisi Residential Sales Price Index (SPI) showed no significant fluctuations from the beginning of 2020; varying between 113 and 114 index points (the index equals 100 in the base period, January 2019). However, the COVID-19 pandemic and consequent economic effect of the lockdown hit the real estate market, resulting in significant deterioration of the SPI, which decreased by 4.1% (MoM) from April to May and a further 2.7% (MoM) from May to June. For the remainder of the year, the SPI presented an upward trend, reaching a peak in December 2020 of 114.6 index points. It is worth noting that the trend did not continue into 2021, with the SPI settling at 110.7 index points in January.

Unlike the SPI, the Rent Price Index (RPI) was characterized by a consistent downward trend throughout 2020, with the largest drops occurring during lockdown periods. More specifically, the RPI decreased by 5.9% (MoM) between April-May 2020, and by a further 7.0% from August to November 2020. Similar to the SPI, the RPI has a spike in December 2020, however, it fell in January 2021 and settled at 78.2 index points.

During 2020, the Average Sales Price (ASP) in Tbilisi varied between 914 and 958 USD per m2 (monthly average), with an overall upward trend. Much like the SPI, the impact of the lockdowns is visible in average prices, resulting in a significant decrease throughout both phases of the lockdown – April to June and September to November. Between lockdowns and before April, the ASP presented an upward trend. Following a decrease in November 2020, the ASP spiked in December 2020, however it fell again in January 2021, reaching 942 USD per m2.