Real Estate Market Research - Georgia

The real estate market in Georgia has demonstrated resilience amidst economic fluctuations. Despite challenges, the market has seen steady growth, with various sectors showing promising trends. This report aims to provide a comprehensive analysis of the current market conditions, key indicators, and a forecast for the coming year.

Real Estate Market Overview

General Economic Overview

  • GDP Growth: 3.5% (2021)
  • Employment Rate: 12% (2021)
  • Interest Rates: 4.2% (2021)

Real Estate Market Trends

  • Transaction Volume: 25,000 transactions (2021)
  • Price Trends: 8% average price increase (2021)
  • Housing Inventory: 4 months of inventory (2021)

Analytical Data

Residential Real Estate

Year Number of Transactions Average Price (GEL) Median Price (GEL)
2021 20000 300000 250000
2022 22000 320000 270000

Market Segmentation

  • Luxury Properties: Increased demand for luxury homes in urban centers.
  • Affordable Housing: Steady growth in the affordable housing segment.
  • Rural vs. Urban Sales: Urban areas continue to dominate sales, but rural markets show potential.

Commercial Real Estate

Office Spaces
Year Vacancy Rate Average Lease Price (GEL/sq.m.) Major Transactions
2021 10% 25 Business Tower Tbilisi
2022 8% 28 Commerce Plaza Batumi
Retail Space
Year Occupancy Rate Average Rental Price (GEL/sq.m.) Major Developments
2021 90% 40 Mall Georgia Expansion
2022 92% 42 City Mall Kutaisi

Market Forecast

Factors Influencing the Market

  • Government Policies: Continued support for the real estate sector through incentives.
  • Interest Rate Changes: Potential slight increase, but overall stability expected.
  • Economic Outlook: Positive GDP growth projected, supporting real estate expansion.

Forecasted Trends

  • Residential Market: Anticipated 10% increase in transaction volume, driven by urban demand.
  • Commercial Market: Continued growth in office space demand, with retail sector adapting to changing consumer behavior.

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