Number of transactions
Following its peak in 2022, Georgia's property market has moved into a phase of stabilisation at a high level of activity. Transaction volumes are not returning to pre-crisis levels but are forming a stable plateau, which points to the consolidation of structural demand, including from foreigners and relocatees. Growth in 2025 is moderate and reflects a normalisation of the market after a period of overheating rather than the start of a downward cycle.
Average price per square metre
Georgia's property market shows a sustained upward price trajectory that took shape after the sharp structural shift at the start of the decade. The rise in the average price per square metre is slowing consistently but retains a positive slope, indicating a transition from overheating to normalisation. Pricing increasingly rests on fundamentals — domestic demand, investment appeal and the limited supply of quality stock, above all in Tbilisi and the key tourist locations.
Foreign demand
The market shows a stable demand structure in which the bulk of transactions is still generated by domestic buyers, while the role of foreigners remains significant and steady. After the sharp expansion of the foreign segment in 2022, its contribution has settled at an elevated level, complementing local demand rather than displacing it. This points to a shift from a short-term relocation impulse to a more balanced model in which external demand has become a structural rather than a temporary component.
Rental yield
The market is seeing a moderate compression of rental yields against continued price growth, above all in Tbilisi. Yields nevertheless remain high by international standards, confirming the investment appeal of the Georgian market. Batumi retains its lead on gross yield thanks to a tourism-driven demand model and a lower entry threshold, although its sensitivity to seasonality and external demand is greater. Overall, the rental market is moving from extreme readings to a more stable and predictable configuration, which is positive for long-term investors.
Georgia's property market is in a phase of “post-relocation” stabilisation, in which the high levels of demand generated in 2022 have translated into a stable and more balanced model. Transaction activity has settled on an elevated plateau, while price dynamics remain upward but with a noticeable slowdown in pace. The market's principal driver is Tbilisi, where investment and end-user demand combine against a limited supply of quality assets. Regional markets, above all Batumi, remain attractive on the back of high rental yields but are characterised by greater sensitivity to seasonality and external demand. The role of foreign buyers remains significant, yet the market no longer depends on a single dominant source, which reduces systemic risks.
In 2026 the market will most likely move into a phase of moderate organic growth. Prices are expected to rise by 3–6% a year; in Tbilisi growth will be more restrained given the already high base, while other cities may deliver stronger relative performance. Rental yields will continue to ease gradually as prices rise, while remaining competitive by international standards. Transaction numbers are likely to stabilise with marginal growth, reflecting the balance between domestic demand and a steady foreign presence. Overall, Georgia's property market in 2026 will be characterised by high predictability, lower volatility and a shift in investor focus from speculative strategies towards long-term income and capital preservation.
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