Comprehensive Analysis of Georgia's Housing Market (2025)

Comprehensive Analysis of Georgia's Housing Market (2025)

Macroeconomic Overview

Price Growth: In Q1 2025, the price index rose by 11.53% year-over-year.

The average housing price in Tbilisi is $1,233–1,334/m². Since early 2022, prices have increased by over 40%.

Construction Volume and Permits: In Q1 2025, 1,630 permits were issued (–4.5% y/y), and 403 buildings were completed (–22.5%).

Transactions and Demand: Despite a decline in the number of deals, the market's monetary volume is growing to ~$253 million.

Regional Breakdown

Tbilisi: High activity in Vake, Mtatsminda, Didi Digomi. Rental rates are declining.

Batumi and Adjara: Strong investment demand; premium segment prices reach up to $4,000/m².

Other Regions: Activity in Kutaisi, Zugdidi, Mtskheta-Mtianeti, Kvemo Kartli, and Kakheti.

Key Drivers

Affordable mortgages, migration inflows, investments from Emaar and other major developers.

Tourism growth, especially in Batumi and Adjara.

Government incentives and support policies.

⚠️ Risks and Limitations

Decline in new permits and construction slowdown.

Decreased activity in the secondary market and falling rental prices.

Geopolitical, currency risks, and legal uncertainties.

Forecast and Recommendations

Outlook: Moderate price growth (+3–5%), improved construction quality.

Investor Advice: Focus on high-potential regions and managed properties.

For Developers: Adapt products, emphasize quality and fast approvals.

For Government: Simplify procedures, improve infrastructure, and maintain lari stability.

Conclusion

Georgia’s market is moving toward stable and balanced development.

Investment potential remains, especially in tourist and urban areas.