More than 70% of Tbilisi’s housing stock is depreciated and requires replacement, according to Irakli Burdiladze, managing partner of developer White Square. He said the condition of the existing housing stock is a key driver of strong demand for residential real estate.
Burdiladze said rising household incomes are encouraging residents to improve their living conditions and move into newly built apartments. He noted that Georgia’s economy grew by around 8% in real terms this year, while inflation exceeded 5%, resulting in nominal economic growth of about 12-13%.
According to Burdiladze, property prices have increased by around 9%, remaining below nominal economic growth. He said sales data also indicate strong demand, with nearly 80% of apartments in projects due for completion this year already sold, compared with 66% in projects scheduled for next year.
Most apartments in Tbilisi are purchased for residential purposes, he said, although early-stage projects also attract local and foreign investors seeking higher returns. Burdiladze added that investment is an additional factor rather than the main driver of demand.
