The average residential rental price first fell to 7.46 USD per m2 (a historical minimum since the start of the study) in October 2015, and after a slight peak in the following month reached 7.66 USD per m2 by the end of the year.
The lari depreciation caused a significant decrease in sale and rental prices in dollar terms. Rental prices slightly increased in August and September before the start of the new academic year. The commercial market turned out to be more resistent to the effects of currency depreciation.
The lari depreciation caused a substantial decrease in USD prices of real estate. Average rental prices of residential property reached their historical minimum in March 2015. Property sellers are trying to compensate for the price decline by offering better, more expensive housing for sale.
The lari depreciation has started to affect real estate market prices in Tbilisi. The average rental price for residential property has continued to fall, reaching a new historical minimum in February 2015.
Investments in real estate compensates for risk premiums (compared to money deposits) and more than covers its costs (Mortgage interest rate). Average rental price for residential property continues to fall and reaches its historical minimum since March 2013.