December 2025
Georgia Real Estate Market: Overview, Prospects, Opportunities
Number of Transactions
Following the peak in 2022, Georgia’s real estate market has entered a phase of stabilization at a high level of activity. Transaction volumes are not returning to pre-crisis levels but are instead forming a stable plateau, indicating the consolidation of structural demand, including from foreign buyers and relocants. Growth in 2025 remains moderate, reflecting market normalization after a period of overheating rather than the beginning of a downward cycle.
Average Price per Square Meter
Georgia’s real estate market demonstrates a steady upward price trajectory, formed after the sharp structural shift at the beginning of the decade. The growth in the average price per square meter is gradually slowing, yet remains positive, indicating a transition from an overheating phase to market normalization. Pricing is increasingly driven by fundamental factors—domestic demand, investment attractiveness, and the limited supply of high-quality assets, particularly in Tbilisi and key tourist destinations.
Foreign Demand
The market demonstrates a stable demand structure in which the majority of transactions continue to be driven by domestic buyers, while the role of foreign purchasers remains significant and stable. Following the sharp expansion of the foreign segment in 2022, its contribution has stabilized at an elevated level, complementing rather than displacing local demand. This indicates a transition from a short-term relocation-driven impulse to a more balanced model, where external demand has become a structural rather than temporary component.
Foreign Demand
The structure of foreign demand is gradually becoming more diversified. Russia still holds the largest share; however, its relative importance is declining amid the growth of the “other countries” segment and the stabilization of flows from Iran and Ukraine. This indicates a transition from a shock-driven relocation model to a more устойчивую and geographically diversified investment base, reducing Georgia’s real estate market dependence on a single dominant source of external demand.
Rental Yield
The market demonstrates a moderate compression in rental yields amid continued price growth, particularly in Tbilisi. At the same time, yields remain high by international standards, supporting the investment attractiveness of the Georgian market. Batumi retains leadership in gross yield due to its tourism-driven demand model and lower entry threshold, although it is more sensitive to seasonality and external demand. Overall, the rental market is transitioning from a phase of extreme values to a more stable and predictable configuration, which is positive for long-term investors.
Market Potential and Outlook
Georgia’s real estate market is in a phase of ““post-relocation” stabilization, characterized by the transformation of the elevated demand levels formed in 2022 into a more stable and balanced model. Transaction activity has settled at a higher plateau, while price dynamics remain upward but with a noticeable slowdown in growth rates. The primary market driver is Tbilisi, where both investment and end-user demand converge amid limited supply of high-quality assets. Regional markets, particularly Batumi, continue to offer strong appeal due to high rental yields, but are more sensitive to seasonality and external demand. The role of foreign buyers remains significant; however, the market is no longer dependent on a single dominant source, reducing systemic risks.
In 2026, the market is highly likely to transition into a phase of moderate organic growth. Expected price growth is projected at 3–6% annually, with Tbilisi showing more restrained dynamics due to an already high base, while other cities may demonstrate stronger relative growth. Rental yields are likely to continue gradually compressing as prices rise, while remaining competitive by international standards. Transaction volumes are expected to stabilize with slight growth, reflecting a balance between domestic demand and a stable foreign presence. Overall, Georgia’s real estate market in 2026 will be characterized by high predictability, reduced volatility, and a shift in investor focus from speculative strategies toward long-term income generation and capital preservation.
Georgia’s real estate market is in a phase of ““post-relocation” stabilization, characterized by the transformation of the elevated demand levels formed in 2022 into a more stable and balanced model. Transaction activity has settled at a higher plateau, while price dynamics remain upward but with a noticeable slowdown in growth rates. The primary market driver is Tbilisi, where both investment and end-user demand converge amid limited supply of high-quality assets. Regional markets, particularly Batumi, continue to offer strong appeal due to high rental yields, but are more sensitive to seasonality and external demand. The role of foreign buyers remains significant; however, the market is no longer dependent on a single dominant source, reducing systemic risks.
In 2026, the market is highly likely to transition into a phase of moderate organic growth. Expected price growth is projected at 3–6% annually, with Tbilisi showing more restrained dynamics due to an already high base, while other cities may demonstrate stronger relative growth. Rental yields are likely to continue gradually compressing as prices rise, while remaining competitive by international standards. Transaction volumes are expected to stabilize with slight growth, reflecting a balance between domestic demand and a stable foreign presence. Overall, Georgia’s real estate market in 2026 will be characterized by high predictability, reduced volatility, and a shift in investor focus from speculative strategies toward long-term income generation and capital preservation.