The Effect of Batumi Stadium

A study of housing prices

Dimitri Kasradze
Beka Abuladze
Motivation of the study

The real estate prices in the neighborhoods of London increased dramatically

after the construction of The Emirates and Wembley stadia ( Ahlfeldt, G. M., &
Kavetsos, 2014). We want to see if same would be true in case of Batumi,
where a new football stadium was built in 2020.
General Overview

● The house prices show an increasing trend and are almost as high as in
Tbilisi, ranging from $700 to $1100 per square meter
● Batumi is one of three cities in Georgia that is gaining population
● All the tickets are being sold when Dinamo Batumi Plays at home
● Qualifications for 2022 World Cup will be held in Batumi
● U19 championship will be held in 2022 in Batumi
 Stadium Construction Timeline

● 19 Oct, 2016 - tender is announced

● 21 Jan, 2018 - construction begins

● 12 Sep, 2020 - the grand opening of

the stadium

Source: Georgian Football Federation https://www.gff.ge/ge/media/news/20692

The Treatment Neighborhood

~1,000,000 sq. meters in the

residential area

~2000 apartments
Sources of Data

● Napr.gov.ge, A.R of Adjara Statistical Bureau

● Alternatively, Real Estate web pages (myhome.ge, livo.ge, ss.ge)

Methodology

Difference in Differences model using 4 time points: 2014, 2016, 2018 and 2022.

(2020 is neglected because of the pandemic, it can bring bias to the results)

Possible steps:

● Compare the treatment neighborhood with entire batumi to see if parallel trend
assumption holds
● Compare the treatment neighborhood with one of the similar neighborhoods in
terms of real estate price (e.g. Batumi Archeological Museum neighborhood)
● Use synthetic controls if above stated steps fail
Conclusions

Based on results we would be able to see if and how the construction of a new
stadium influences the housing prices in a specific neighborhood of Batumi
References
Ahlfeldt, G. M., & Kavetsos, G. (n.d.). (2014) Form or function?: the effect of new sports
stadia on property prices in London.

http://eprints.lse.ac.uk/47352/1/__lse.ac.uk_storage_LIBRARY_Secondary_libfile_s
hared_repository_Content_Ahlfeldt%2C%20G_Form%20or%20function_Ahlfeldt_For
m%20or%20function_2014.pdf

Geostat (2021), Population of Cities and Boroughs, as of 1st of January

https://www.geostat.ge/ka/modules/categories/41/mosakhleoba

Investment Georgia (2020), Real estate in Batumi

https://in-georgia.com/ka/real-estate-in-batumi-prices-2020/
Thanks For Your Attention!
Any Questions?