Commercial real estate prices on Rustaveli Avenue are expected to increase after the planned rehabilitation works, according to Rezo Mgaloblishvili, founder of “Tbilisi Commercial Space.” He predicts that rental prices could rise by 30-40% once the renovated avenue becomes more attractive to visitors and businesses.
Mgaloblishvili said that in the short term, the four-month construction period may negatively affect businesses, with landlords and tenants possibly agreeing on temporary rent reductions of around 20-25%. However, after completion, increased pedestrian traffic could attract new brands, restaurants, and retail businesses.
He compared the expected impact to the development of Chavchavadze Avenue, noting that a modernized environment could significantly boost demand. However, he warned that delays similar to the Vake rehabilitation project could create additional challenges for businesses.
Currently, commercial rents on Rustaveli Avenue range from around $40 to $80 per square meter, depending on location, visibility, and size. The avenue currently has around 50-60 commercial spaces available, while demand remains significantly higher, with many companies waiting for opportunities to enter the area.
