Residential Real Estate - Georgia

In the country of Georgia, the Residential Real Estate market market is anticipated to achieve a value of US$141.70bn in the year 2024.
This projection suggests a promising growth trajectory, with an estimated compound annual growth rate (CAGR 2024-2029) of 5.93%.
As a result, the market volume is expected to expand to US$189.00bn by the year 2029.
In terms of global comparison, it is noteworthy that China is poised to generate the highest value in the Real Estate sector, reaching a staggering US$112.9tn in 2024.
Despite the economic challenges, the residential real estate market in Georgia continues to thrive with increasing demand and a growing number of foreign investors.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Georgia is experiencing significant growth and development. Customer preferences are shifting towards modern, spacious homes with convenient amenities. The market trends indicate an increase in demand for residential properties, driven by factors such as population growth, urbanization, and improving economic conditions. Additionally, local special circumstances and underlying macroeconomic factors contribute to the positive trajectory of the market. Customer preferences in the Residential Real Estate market in Georgia are evolving. Homebuyers are increasingly seeking modern and spacious properties that offer convenience and comfort. The demand for apartments and houses with amenities such as parking spaces, gyms, and communal areas is on the rise. This shift in preferences is influenced by changing lifestyles and the desire for a higher standard of living. Additionally, there is a growing interest in eco-friendly and energy-efficient homes, reflecting a global trend towards sustainability. The market in Georgia is witnessing several key trends. Firstly, there is a steady increase in the number of residential property transactions. This can be attributed to population growth and urbanization, as more people move to urban areas in search of better job opportunities and improved living conditions. The demand for housing is also fueled by the growth of the middle class and increasing disposable incomes. Additionally, the development of infrastructure, such as transportation networks and commercial centers, is attracting investors and driving the demand for residential properties. Local special circumstances play a significant role in the development of the Residential Real Estate market in Georgia. The country's strategic location at the crossroads of Europe and Asia makes it an attractive destination for both domestic and international investors. Georgia's favorable business environment, including low taxes and streamlined regulations, encourages investment in the real estate sector. Furthermore, the government's efforts to promote tourism and foreign direct investment have contributed to the growth of the market. These initiatives have led to an influx of tourists and expatriates, increasing the demand for residential properties. Underlying macroeconomic factors also contribute to the positive trajectory of the Residential Real Estate market in Georgia. The country's stable political environment and commitment to economic reforms have attracted foreign investors. Additionally, Georgia's membership in the World Trade Organization and its association agreement with the European Union have opened up new opportunities for trade and investment. The strong economic growth and low inflation rate further enhance the attractiveness of the real estate market. Moreover, the availability of affordable financing options, such as mortgage loans, has made it easier for individuals to purchase residential properties. In conclusion, the Residential Real Estate market in Georgia is experiencing significant growth and development. Customer preferences are shifting towards modern, spacious homes with convenient amenities. The market trends indicate an increase in demand for residential properties, driven by factors such as population growth, urbanization, and improving economic conditions. Local special circumstances, such as Georgia's strategic location and favorable business environment, contribute to the positive trajectory of the market. Underlying macroeconomic factors, including stable political environment, economic reforms, and affordable financing options, further enhance the attractiveness of the real estate market in Georgia.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate - Georgia

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Living Space

Methodology

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