Lari depreciation is behind a gradual reduction in Tbilisi housing prices - February, 2015
16 February 2015

• 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.

• In January 2015, for the first time since the beginning of the sample, Old Tbilisi was not the most expensive district on the rental market.

In January and February 2015, there was no significant change in the rental and sale prices of residential property, but the price on both markets remained below their long-run trends. Average rental prices declined in both months, reaching a new historical minimum of 8.23 USD per m2 in February 2015. Likewise, in the first two months of 2015, the residential rental price index decreased by 6.2% and 2.9% respectively, compared to the same period in 2014. Moreover, average sale prices declined sharply to 867.6 USD per m2 in January (the lowest level since June 2013), recovering only slightly in February.