Tbilisi’s residential real estate market continues to record strong demand, with both property sale prices and rents increasing, while a decline in construction permits is helping reduce the risk of oversupply, according to Galt & Taggart senior analyst Otar Tsukhishvili.
Speaking on the programme Real Estate Prospect, Tsukhishvili said that during the first nine months of 2026, sales on the primary market increased by 21% year-on-year, while secondary market transactions rose by 14%. The growth was supported by the strengthening of the Georgian lari against the US dollar and lower interest rates.
Meanwhile, the area covered by newly issued construction permits has continued to decline following a record 1.9 million square metres in 2023. In the first nine months of 2026, the figure decreased by 7.6% year-on-year. According to Tsukhishvili, rising demand combined with reduced new supply is bringing the market closer to a balance between supply and demand. Property prices on the primary market increased by 6% this year, compared to 4% in 2025.
Local buyers account for around 80% of property purchases, mainly for residential purposes, while foreign nationals represent the remaining 20%, primarily purchasing for investment. Israeli citizens make up the largest segment of foreign buyers in Tbilisi. The market's appeal to international investors is supported by rental yields of approximately 8–9%. Tsukhishvili also noted that rising risks in the Middle East have encouraged some investors to redirect capital into Georgia’s real estate market.
