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Residential Real Estate Leases - Georgia

Georgia

The Residential Real Estate Leases market market in Georgia is anticipated to achieve a revenue of US$1.01bn by the year 2024.
House Leases emerges as the dominant segment with a projected market volume of US$0.67bn in the same year.
Furthermore, a steady annual growth rate (CAGR 2024-2029) of 0.78% is predicted, which will contribute to a market volume of US$1.05bn by 2029.
The residential real estate leasing market in Georgia is experiencing a surge in demand due to the country's growing economy and attractive investment opportunities.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in Georgia is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trajectory. Customer preferences in the Residential Real Estate Leases market in Georgia are driving the demand for rental properties. Many individuals are opting to rent rather than buy a home due to the flexibility and affordability it offers. Renting allows individuals to have more freedom to move and explore different areas without the commitment of a long-term mortgage. Additionally, renting is often more cost-effective for individuals who are not yet ready to invest in a property or who prefer to allocate their finances to other priorities. Trends in the market indicate a rising demand for rental properties in Georgia. As the population grows and urbanization increases, the need for housing also expands. This trend is particularly evident in major cities such as Tbilisi, where there is a high demand for rental properties due to the influx of young professionals and expatriates. Furthermore, the rise of the sharing economy and short-term rentals platforms has also contributed to the growth of the Residential Real Estate Leases market in Georgia. Many property owners are capitalizing on this trend by renting out their properties on a short-term basis, catering to tourists and business travelers. Local special circumstances in Georgia also play a role in the development of the Residential Real Estate Leases market. The country's favorable investment climate and relatively low property prices compared to other European countries make it an attractive destination for real estate investors. This has led to an increase in the supply of rental properties, further fueling the growth of the market. Additionally, the government has implemented policies to encourage foreign investment in the real estate sector, providing incentives and tax breaks to attract investors. Underlying macroeconomic factors contribute to the positive development of the Residential Real Estate Leases market in Georgia. The country's stable economic growth and increasing disposable income levels have created a favorable environment for individuals to enter the rental market. Additionally, low interest rates and easy access to financing have made it more feasible for individuals to invest in rental properties. These factors, combined with the growing tourism industry and the country's strategic location as a gateway between Europe and Asia, contribute to the overall growth and development of the Residential Real Estate Leases market in Georgia. In conclusion, the Residential Real Estate Leases market in Georgia is experiencing significant growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The demand for rental properties, the rise of the sharing economy, the favorable investment climate, and the country's stable economic growth all contribute to the positive trajectory of the market.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.