Georgia’s real estate market has outperformed initial expectations in 2026, maintaining strong activity and recording double-digit year-on-year sales growth in some months, particularly in the secondary market, says Irina Kvakadze, vice president of TBC Capital.
Kvakadze attributes part of the demand to capital flowing into Georgia amid developments in the Middle East. Residential property prices have increased by around 4–5% over the year.
Construction permit volumes remain high, with permitted floor space reaching approximately 680,000–690,000 square meters over the first seven to eight months, compared with 700,000 square meters during the same period last year. Kvakadze stressed the importance of balancing supply and demand to avoid both oversupply and excessive price increases.
Regarding the risk of a real estate bubble, TBC Capital’s index indicates that the market is fairly valued, although slightly above the threshold. Kvakadze said analysts currently see no major signs of overvaluation but will continue monitoring market developments.
