Batumi has seen a significant decline in activity in the real estate market, according to a report published by the company Colliers Georgia, after analyzing the Batumi real estate market in the fall of 2023.
Analysis of the real estate market in Batumi for September 2023:
- The number of transactions decreased by 31% compared to September last year.
- During this period, only 1,163 apartments were sold.
- The total market volume decreased by 30%, reaching $53 million.
- The real estate market in new buildings suffered noticeably, reducing the number of transactions by 32%, while in the secondary market the decline was 20%.
- The weighted average price of apartments in new buildings increased by 7%, reaching $940 per square meter. The secondary market also saw an increase of 13%, with prices at $751 per square meter.
These statistics clearly indicate a decrease in interest in real estate in Batumi and a decrease in market volume over the period of time under review.
The real estate market in Batumi also reflects the following trends:
Declining number of expats in Batumi
In general, the real estate market in Batumi remains dynamic and interesting for investors, but it is subject to fluctuations depending on economic and political factors. The number of expats in Batumi has reached its level, and its growth is expected. This affects the growth in the volume of real estate transactions. It may freeze at a certain level, but most likely the number of real estate transactions in Batumi will decrease. In turn, the number of expats is decreasing, as many give preference to facilities and resorts in Turkey or the UAE.
Supply structure on the real estate market in Batumi
In recent years, the real estate market in Batumi has become more diverse and innovative. Along with traditional apartments and apartments in new buildings, apart-hotels are gaining popularity, which provide owners with the opportunity to rent out their property and receive a stable income.
Foreign investment in real estate Batumi
Batumi attracts the attention of foreign investors, which affects the growth of the real estate market. External investments are often aimed at the construction of residential complexes and infrastructure development, which helps improve the quality of life and the attractiveness of the region for buyers. But there are problems with the population density of Batumi.
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Also, residential complexes in Batumi are built without parking lots, or with parking lots with insufficient parking spaces. Which leads to a decrease in traffic. The construction of multi-storey residential complexes leads to an increase in the population density of Batumi. Some developers are already building in Makhinjauri, Gonio. At the moment, the official population density of Batumi is almost 3,000 people per square kilometer. This figure is approximate and very underestimated, since Georgia has low statistical control over foreigners who de facto live in the city on a permanent basis.
The impact of tourism on the real estate market in Batumi
Batumi is a popular tourist destination on the Black Sea coast and this has an impact on the real estate market. Many investors and buyers view real estate as a potential source of income through short-term rentals for tourists.
The level of construction activity in Batumi is decreasing
Increasing demand for real estate in Batumi in the past has led to an increase in construction activity. However, given the decline in the number of transactions in 2023, a decline in construction activity is expected.
Regulation of the real estate market in Batumi
Georgian government agencies are actively working to regulate the real estate market, including strengthening control over the legalization of transactions and foreign investments. These measures are aimed at ensuring market stability and transparency.
