Demand in Georgia’s real estate market remains healthy, which is also contributing to rising property prices, according to Soso Phkhakadze, founder of the Wissol Group and President of the Business Association of Georgia. He says that in a strong macroeconomic environment, real estate is typically one of the first sectors where investors allocate capital due to its relative simplicity and transparent return calculations.
Speaking to BMG, Phkhakadze noted that foreign investors are particularly attracted by the clear upward trend in property prices over recent years. This makes the sector more appealing compared to more complex industries such as manufacturing, where entry barriers and operational risks are higher.
He added that supply and demand in the market are currently balanced, which he considers a healthy sign. While the number of construction permits may have slightly decreased, he said this reflects earlier strong issuance by municipalities. As a result, price growth has slowed compared to previous years, but the upward trend continues and may strengthen again depending on future demand.
Phkhakadze concluded that the real estate sector remains a key investment area in Georgia’s economy, with continued potential for growth driven by demand dynamics and further development activity.
