Real Estate in Tbilisi (2025 Market Snapshot)

Market Growth & Price Trends

Residential property prices in Tbilisi rose by about 11.5% year-on-year in Q1 2025. CBW

Since 2020, new housing prices in Tbilisi have climbed approximately 57%. Georgia Today

For the first half of 2025: Although number of transactions was slightly down (~0.6% fewer deals), total market value still increased by about 11% to US$1.4 billion. International Investment+2Gbc+2

In September 2025: ~4,054 apartment transactions were recorded (+14.9% y/y) and the total market volume reached about US$310 million. International Investment

Median price by district (new apartments):

Mtatsminda: ₾6,769/m²

Vake: ₾5,880/m²

Saburtalo: ₾4,297/m² CBW

These figures show that prime central neighbourhoods command significantly higher prices, while more affordable stock exists further out.

Demand Drivers & Investment Insight

Strong demand from foreign buyers: For example, Israeli citizens accounted for 11 % of apartment purchases in Tbilisi in early 2025. BM.GE

High pre-sales: In projects finishing in 2025, about 83% of units were already sold by mid-2025. BM.GE

Rental yields remain attractive compared to many European cities — reports suggest yields around 8%–9%depending on segment and location. International Investment

Supply continues to grow, but major developers report high sales already, indicating demand remains ahead of new supply, especially for quality units.

Why Investors Like Tbilisi

Strategic location linking Europe & Asia, ease of access, and growing tourism.

Favourable tax & legal framework for foreigners (foreign ownership is allowed).

Attractive mix of lifestyle (city culture, scenic backdrop) and investment potential.

⚠️ What to Be Cautious About

Quality variation: Some new developments may skimp on finishing or building materials — always inspect or review developer reputation.

Oversupply in certain segments: While prime sustainable supply remains limited, stock of lower-quality or speculative units may rise.

Transaction volume decline in some months: despite price growth, fewer units are moving in the second-hand market, which could affect exit liquidity. Georgia Today

Location matters: Price gains are strongest in central & near-centre neighbourhoods; further-out areas still offer value but may see slower appreciation.

Currency & economic risk: As with any emerging market, macro-factors (currency fluctuation, regulatory change) can impact returns.

Key Strategic Takeaways

If I were advising you (with your travel & real-estate interests), here’s what I would suggest:

Focus on central or near-central districts (Vake, Mtatsminda, Saburtalo) for long-term capital appreciation.

For rental income or more budget-friendly investments, consider suburbs with good transport links.

Check developer/contract carefully: ensure building standards, published timeline, instalment plans (many units are sold via instalments).

Assess your exit strategy: Will you hold for capital growth, rental yield, or both? Because sub-market liquidity can vary.

Stay informed on local legal/tax conditions (foreign purchaser rights, property tax, rental regulation).

Given your interest in international ventures (travel + real-estate), Tbilisi could fit well as a UK-friendly, cost-effective European base.