The National Bank of Georgia will begin publishing residential real estate price and rent indices as well as a capitalization rate, the bank said on Tuesday.
The NBG pointed out that it has been regularly collecting data on residential property prices and rents, which are important indicators of financial stability, since 2006, adding that the availability of historical records will provide market participants, analysts, researchers and other interested parties with relevant information in a timely manner.
From a methodological point of view, the residential property price and rent indices cover two major urban segments, namely Saburtalo and Varketili districts of Tbilisi, the bank stressed.
The indices are derived from a regular survey of asking prices for typical one- and three-room apartments in these segments from open sources, which are averaged and the result is then calculated in relation to a base period. The capitalization is calculated as the ratio of the annualized average rent of a given month to the average price of the same month,” says the NBG.
The organization also added that the residential property price and rent indices, along with the capitalization rate, would be published monthly on the NBG website.
