Part of Georgia’s business community says that growing political risks and delays in the country’s European integration process are dampening investor confidence and slowing decision-making in key sectors, including real estate.
According to Zurab Eristavi, founder of RENTALS and Eristavi Estates, there is a noticeable trend of investors becoming more cautious, with many putting projects and expansion plans on hold.
“The growth forecast and pace of Georgia’s economy are quite impressive, especially compared to the region, and it’s impossible not to notice that,” Eristavi told BMG. “However, political risks send a very negative signal to investors. We see this directly in our business, in real estate, where many large investors are hesitating or delaying their decisions.”
Eristavi explained that while new large-scale projects are being announced, the reality on the ground is different for those already operating in the sector. “Over the past decade, we’ve worked with many international organizations that entered Georgia and expanded steadily, taking one office, then a second, third, and so on. Now, that scale of expansion has slowed. Our long-term clients tell us they are waiting to see what happens next before making new commitments,” he said.
The cautious investor sentiment follows the European Commission’s latest enlargement report, which stated that Georgia’s EU candidate status “remains only on paper,” highlighting ongoing political challenges and uncertainty over the country’s European path.
