Demand for real estate in Batumi fell at the beginning of 2024. According to a report from a real estate agency Colliers Georgia, in the first quarter of 2024 there has been a decrease in interest in purchasing apartments in Batumi. During this period, 3,374 apartments were sold, which is 24% less than during the same period last year.
Prices for apartments in new buildings in Batumi increased by 5%
The average price for an apartment in new buildings in Batumi increased by 5%, reaching $945 per square meter, while prices on the secondary market decreased by 6%, the average price being $685 per square meter. This indicates an overheating of the real estate market in Batumi. An investor, buying an apartment in a new building and immediately selling it, loses 27.5% of his investment.
Real estate market activity in Batumi in 2024
The volume of transactions in the primary market decreased by 23%, and in the secondary – by 32%. Which indicates the continuing stagnation of the real estate market in Batumi.
Read also: Stagnation of the Batumi real estate market in autumn 2023
An analysis of the Batumi real estate market in 2023 showed that the average price per square meter of housing in Batumi increased by 20.1% over the year, reaching 1.3 thousand dollars. The majority of sold apartments (42%) are located on the territory of New Boulevard.
This is explained by the fact that 60.1% of transactions are carried out on the primary market, where projects are actively being implemented in this area. According to G&T, the majority of sales come from apartments ranging from 26 to 80 square meters. However, in 2023 the number of transactions decreased by 31% compared to September last year.
The number of apartments sold in Batumi in 2023 was less than in 2022
This follows from a study conducted by the consulting company Galt & Taggart. The decline in sales is due to record high results in 2022 and a decrease in the number of migrants. However, the 2023 figures were almost a third higher than in 2021.
In total, almost 16 thousand transactions were made. Of these, 8.9 thousand were purchased apartments in new buildings, and 6.8 thousand were purchased on the secondary market. The most successful sales were apartments on New Boulevard. However, at the moment, 78% of apartments in buildings whose delivery is planned between 2024 and 2028 have already been sold.
Real estate problems in Batumi
Apartment complexes in the city are often built without parking or with insufficient parking spaces, which exacerbates traffic flow problems. The expansion of multi-storey housing construction leads to an increase in population density in Batumi itself. Some developers have already started construction in neighboring areas such as Makhinjauri and Gonio.
Read also: Rental prices in Georgia fell by almost 30% 2024
There are also problems with population density in Batumi. At the moment, the official population density in Batumi is about 3,000 people per square kilometer. However, this figure is approximate and is likely underestimated due to insufficient statistical control over foreign citizens actually living in the city on a permanent basis.
Problem with commissioning new buildings in Batumi in 2024
The problem with commissioning new buildings in Batumi in 2024. Most new buildings in Batumi do not meet the standards and have not yet been put into operation. The Municipal Inspectorate of the city of Batumi informs that since 2020, 377 applications have been received from developers to put buildings into operation. However, only 90 of them were satisfied. In other cases, various violations were found.
Since the beginning of 2024, the municipal inspection of the city of Batumi has received 10 applications, but to date, 6 of them have been rejected, and 2 applications are still being considered.
