Low interest rates drive decline of average rental prices in October - 2014
14 October 2014

• In October, rental prices for residential properties in Tbilisi declined significantly in annual terms (-7.1%). 

• Buyers tended to purchase cheaper, lower quality units in October relative to the previous month.

• Lower lending and deposit interest rates made real estate investments more attractive, driving rental prices for residential property downward.

The October rental price index fell sharply by 7.1% in annual terms (see Chart 1). However, the average rental price remained stable and even slightly increased in monthly terms from 8.56 to 8.59 USD per m2, reflecting seasonal price changes in this market.