Tbilisi Rental Prices Falling?! (March 2023)

“I’m looking for a tenant to replace me.”
“I’m moving to another country and I want to sublet my apartment.”
“We don’t want to lose the deposit.”
“We are helping our host to find a new tenant.”

These statements will probably look familiar if you spend any time in the Russian-speaking Facebook expat groups in Tbilisi.

What does it mean for the real estate market? Does it mean Tbilisi rental prices are falling?

Since the beginning of the war in Ukraine, a huge number of migrants have crossed the Georgian border, thereby creating an unprecedented demand for real estate in Georgia. Prices skyrocketed and continued to rise throughout 2022.

Today, the downward trend in the rental sector is obvious. That big influx of immigrants/refugees was temporary. Our team gets hundreds of inquiries every month and the inquiries are down about 40% compared to a few months ago.

You can see further evidence of the slowdown in the market by looking at all the high-priced apartments that are sitting on the market instead of being sold or rented. Where did all the buyers go? Where did all the tenants go?
The high-demand from the beginning of the war is gone and we are back to a more stable market. In fact, there are signs that the market will continue to slowdown as all the temporary immigrants/refugees move to long-term locations. The result is fewer requests and lower budgets.

People are moving to other countries, which is very common when they see the rental prices in Tbilisi are higher than attractive options like Montenegro, Dubai, Spain or Portugal. If you can pay the same amount or even less to live on a beach versus living in Georgia, what would you choose?

The downward pressure on prices affects both rentals and sales. When there is less demand, sellers and landlords have to either lower their prices to attract people. Or have their property sit on the market for months and months while the market continues to get weaker. Hint: The sign of an overpriced apartment is when you see the same place listed for a long time with a lot of different agents. If the price was good, the apartment would no longer be available. Buyers and renters are smart enough to understand it.

How can you figure out the “real” price for an apartment?

You will not find this information on ”myhome” or “ss” websites. Access to the final prices of real transactions is available only to those who participate in them (agent, landlord, tenant). We have a good idea about true prices in many parts of Tbilisi because of our daily conversations. We can tell by the number of requests we are getting. If a property is desirable (price, location, renovations) or not.
The ONE thing that is true in every type of market is that high-quality properties that have realistic prices sell and rent very fast. Overpriced properties do not sell or rent very fast (or at all). Don’t blame us for this message, blame the low of supply and demand.

Helen Sterling
Real Estate Expert