Property for sale in Tbilisi

An analysis of the real estate market in Tbilisi shows that prices have risen faster than rents in recent years. As a result, property owners earn less rent per U.S. dollar/Lari of investment today as compared to several years ago. This trend may be due to improved political and economic conditions, strong economic growth and rising incomes. Another factor may be that speculative property buyers are driving up prices based on very optimistic expectations about future price increases. Get more information on property for sale in Georgia.

After strong increases in recent years, real estate values significantly exceed marginal building costs, which are the long-term drivers of real estate prices according to standard economic theory. Developers are taking advantage of rich prices by building large volumes of new real estate.

Buyers of real estate, whether for their own use or for investment, need to be cautious.

Buying decisions should generally not be based on the expectation of further price increases, as such expectations may prove incorrect. Trade-offs between buying and renting and between investing in real estate and other alternatives need to be evaluated. Investors may consider the varying prospects of different market segments. Despite this report’s conclusion that an oversupply of real estate may be in store for Tbilisi overall, some niche segments of the market seem to remain scarce. Also, building costs vary widely between projects, with higher-cost projects most at risk.