Kutaisi's booming real estate market is outpacing the city's long-term planning, raising concerns about sustainable urban development, according to architect Vepkhia Mkheidze, founder of MA Architect. Speaking to BMGTV, Mkheidze said the absence of an approved master plan is the city's biggest challenge, leaving Kutaisi without a clear framework for both architectural and economic development.
According to Mkheidze, work on the city's master plan has been repeatedly delayed since 2019, with the development concept revised three times as leadership changed. He argued that the lack of a strategic planning document has stalled major investment projects for the past year and a half and prevented the city from defining business zones, attracting investment, and creating long-term employment opportunities.
The architect noted that around 70% of Kutaisi's territory is currently designated as residential, while commercial and industrial areas remain underdeveloped. He warned that without dedicated zones for medium and large businesses, the city risks becoming overly dependent on residential construction instead of creating sustainable economic activity that would encourage people to live and work in Kutaisi.
Kutaisi is currently experiencing rapid growth in its housing market, with more than 40 residential projects under construction and dozens more in preparation. Demand is driven largely by Georgian emigrants and buyers from western Georgia. Residential property prices have increased by around 25% over the past two to three years, with economy-class apartments now selling for $900–1,000 per square meter, up from about $600, while premium developments are priced at $1,300–1,500 per square meter.
