Secondary Market Is Real Estate Market Leader
01 March, 2012
Secondary Market Is Real Estate Market Leader

Georgian Business and Political Insight, an information analytical portal, published research of Georgian real market based on which real estate market players assure that market activity remains with the secondary market. This trend remains unchanged since the economic crisis of 2008-2009,  when a good number of newly launched constructions halted due to the lack of financial resources and consumer opted  to stick to the already built apartments. 

 

According to them, 82.3% of transactions implemented in January of 2012 comes with the secondary market and the first-hand transactions take just 17.7%. The last January the Public Registry Agency reported 5 747 new registrations, which by 35.4% lags behind the data of December of 2011,  although this January data exceeds the data of January 2011 by 10.9%.

The number of secondary transactions registered at Public Registry accounted for 26 703, which  by 17.7% exceeds similar data of 2011 and by 32.3% is behind the data of last December. However, as the market analysts explain, the peak turnover in December and slow-down in January is a normal tendency as people hurry to get through with affairs by end of the year but appear slow as the year starts.

The monthly index of the registration transactions [December of 2007=100] for the secondary and first-hand transactions stands at 0.168 and 1.230 levels respectively. According to Public registry 32 450 registration transactions took place overall in this past January.

The BPI.ge also aired rating of Tbilisi districts in accordance to prices fixed on February 1-6 of 2012 at web-site saqme.ge and place-ge focused on real-estate sale and purchase announcements.

20 districts of the capital of Georgia were researched and the demand and price for two-room apartments was chosen as a research benchmark. As a matter of fact, the research showed that the top districts of the capital are Vake, Saburtalo, and Mtatsminda-Sololaki in this period of year. Vake truned out the top expensive place:  price for the targeted apartment is in Vake averaged to USD 1015 per square meter there.

Saburtalo is runner up by USD 951 per square meter, and Mtatsminda-Sololaki takes the third place by USD 932.

The prices in the remainder districts of Tbilisi break down from USD 840 per square meter within the capital’s less prestigious districts including USD 678 fixed in Avlabari [old Tbilisi downtown by the way adjacent to the President’s residence], to USD 551-473 in the outskirts of the capital around Tbilisi Sea adjacent territory.

Except the location the price for apartments is also defined by its living condition and status: whether or not it is old, new or under construction.