After a decline in January 2021 compared to December 2020, the Tbilisi Residential Sales Price Index (SPI) showed an upward trend in Q1 2021, increasing from 110.7 index points in January 2021 to 113.5 index points in March 2021 (the index is equal to 100 in the base period, January 2019). Nevertheless, compared to the first quarter of 2020, SPI showed a decline in Q1 2021, with the largest drop of 2.4% (YoY) occurring in February 2021.

Unlike the SPI, the Rent Price Index (RPI) was characterized by a consistent downward trend throughout Q1 2021, declining from 78.2 index points in January 2021 to 77.2 index points in March 2021. Similar to SPI, compared to the previous year RPI presented a decrease in every month of the first quarter, with the greatest decline in February 2021: 17.7% (YoY).

The Tbilisi Residential Sales Price Index (SPI) showed no significant fluctuations from the beginning of 2020; varying between 113 and 114 index points (the index equals 100 in the base period, January 2019). However, the COVID-19 pandemic and consequent economic effect of the lockdown hit the real estate market, resulting in significant deterioration of the SPI, which decreased by 4.1% (MoM) from April to May and a further 2.7% (MoM) from May to June. For the remainder of the year, the SPI presented an upward trend, reaching a peak in December 2020 of 114.6 index points. It is worth noting that the trend did not continue into 2021, with the SPI settling at 110.7 index points in January.

In comparison to Q1 2020, the GEO real property market contracted significantly by 45.5% in Q2 2020 (from 27,273 units sold in Q1 2020 to 14,855 in Q2 2020) while the annual decrease was observed at 53.6% (YoY) compared to Q2 2019.

Tbilisi dominated the real property market with a 36.2% share in total sales in Q2 2020. The Tbilisi market was followed by Kakheti and Kvemo Kartli, with a respective 12.9% and 8.9% of GEO sales.

The highest annual decrease in Q2 sales (YoY) was observed in Adjara (-67.5%), followed by Tbilisi City (-62.6%), Samtskhe-Javakheti (-55.3%) and Imereti (-52.0%) regions. In total, the market outside the capital shrank by 46.3%.

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