Beso Ortoidze, CEO of Arsi, has commented on the influence of regional conflicts on Georgia’s real estate market, emphasizing that growth fueled by war is not sustainable.
Ortoidze notes that instability in the Middle East could have a short-term impact on Georgian real estate, especially considering the historically high activity of investors from Israel and the Gulf countries. However, he stresses that price spikes driven by external conflicts are not desirable for the market.
“Personally, I would not welcome such growth because it is never natural. When the market rises due to external factors, it is never healthy. During the Russia-Ukraine war, property prices and costs increased rapidly, creating certain risks. Fortunately, the market has remained stable recently, but any external shock, positive or negative, can ultimately affect it negatively,” he said.
Ortoidze also highlighted rising construction material costs as a significant factor. “During the peak of the Russia-Ukraine conflict, material prices jumped sharply. Currently, there are some risks due to imports from China, but this is unlikely to be as severe,” he noted. Analysts at TBC Capital suggest that if the Middle East conflict is resolved quickly, 2026 could be a more positive year for the Georgian real estate market, driven by potential migration and increased demand for rentals and sales. Conversely, prolonged conflict could dampen transactions and slow price growth.
