“Patient” sellers try to compensate for the drop in USD prices: offer more expensive, better quality housing for sale - May 2015
11 June 2015

• The lari depreciation caused a substantial decrease in USD prices of real estate. Average rental prices of residential property reached their historical minimum in March 2015.

• Property sellers are trying to compensate for the price decline by offering better, more expensive housing for sale.

• The lari price increase of rental properties has driven demand away from the central districts of Tbilisi to the nearby suburbs.

Some interesting phenomena can be observed on the residential property Tbilisi market in the period March-May 2015. First, average rental prices continued to follow a downward trajectory. In particular, in March average rental rates reached a historical low of 7.92 USD per m2. At the same time, average sale prices declined to 850.3 USD per m2 in March.