The FINANCIAL — Real estate market activity increased only by 4% in July.
The market activity improved only slightly in July ending the month with 1868 transactions versus 1790 in the previous month. Year to day, the market activity has improved by 21%, and compared to pre war statistics of August 2008, the activity is up by 18% (1,581 sale transactions in July 2008 and 1,546 in July 2009).
Compared to the previous month, the demand was highest for residential properties in July than for land parcels or non-residential properties. The increase in demand for residential flats constituted 13.5%, 6.6% for non-residential properties while the demand for land properties decreased by 13%. The comparison of the July 2010 statistics with July 2009 shows that the market is more active this year. Land properties show the improvement by almost 46%, flats by 10%, and non-residential properties by 67%. Overall, compared to July 2009, there were 21% more sale transactions made in July of the year.
The under construction flat market stayed at the same level as in June ending the month with 93 transactions. It appears that the demand for under construction residential flats has been stable throughout the summer due to the holiday season.
The sales of 93 under construction flats were distributed to the districts as follows: Vake (29), Saburtalo (23), Didube (14), Mtatsminda (12), Samgori (5), Isani (5), Nadzaladevi and Gldani (2 each), Dighomi (1). Based on the statistics, average 26 under construction flats are sold in Vake district per month, 19 in Saburtalo, 14 in Didube and 8 in Mtatsminda districts. 60 % of all under construction flats sold were under 100 sq.m. 91% of all under construction flats sold was under $100,000.
The sales of completed flats increased by apr. 15% over June. The districts that commanded highest number of sales are as follows: Gldani (199), Samgori (182), Vake (179), Saburtalo (159). Based on the statistics, average 176 flats are sold in Samgori district, 150 in Gldani District, 143 in Vake and 137 in Saburtalo districts each month. 84% of all sales of completed residential properties were under $50,000. 82% of all land sales were recorded under $50,000.
With July 2010 sales, the market has surpassed the number of sales of July 2009 by 21%, and July 2008 by 18%. Despite the summer holidays when historically the market becomes inactive due to most of the residents travelling out of town, the market has still managed to improve slightly. Taking the historic cycles into consideration, we shall expect the market to continue improving and reach the peak in December.