08/13/2024 | Press release | Distributed by Public on 08/14/2024 07:04
The National Bank of Georgia Starts to Publish Residential Real Estate Price and Rent Indices
The National Bank of Georgia starts to publish real estate price and rent indices. These indices reflect the changes in market prices for residential real estate. In addition, the National Bank of Georgia will also publish a capitalization rate.
The National Bank of Georgia has been collecting regular data on residential real estate prices and rents since 2006. The residential real estate price and rent indices are key indicators of financial stability. The availability of this historical series will provide market participants, analysts, researchers, and other interested parties with timely thematic information.
From a methodological perspective, the indices of residential real estate prices and rents cover two major urban segments of the city of Tbilisi, Saburtalo and Varketili. The indices are obtained from regular collection of offer prices for typical 1-room and 3-room apartments in these segments from open sources, averaging them, and then calculating the result relative to a base period. Capitalization is calculated as the ratio of the annualized average rent of a given month to the average price of the same month.
The residential real estate price and rent indices, along with the capitalization rate, will be published monthly on the NBG's website in the form of interactive statistics, at the following address.