Tbilisi Residential Market
The financial impact of COVID-19, and more specifically that of countrywide travel restrictions, pessimistic expectations and the bearish tendencies is starting to reflect on the residential real estate market. To gauge outlook on the present and future of the sector, we surveyed a group of Georgian developers who together hold more than 50% of the market share.
The study was conducted in two stages: the first survey round was conducted in the last week of March, when the State of Emergency had just been announced and the State borders had been closed, however no transport restrictions were yet in place. The second round was conducted in the last week of April – a very different time for the developers, considering the city-wide lockdowns, travel restrictions and a starkly reduced demand on residential real estate. Response rate for the two rounds stands at 58% and 60% respectively. Participants were sampled purposively and chose to remain anonymous.
To supplement our survey findings, we also analyzed transactional data for January-March 2020 and compared annual and monthly growth trends to those of the years past. In this publication we review the findings of our survey as well as transactional dynamics of the first quarter of 2020.