According to Zura Eristavi, founder of RENTALS and Eristavi Estates, Tbilisi’s residential real estate market is not currently at risk of oversupply, as rising demand is balancing the increase in new housing supply.
Speaking on the Real Estate Prospect program, he said the situation is different in the commercial real estate segment, where vacancy rates may increase over the next three years due to growing supply, potentially reshaping market dynamics.
Citing Galt & Taggart research, Eristavi noted that commercial property vacancy could rise to around 27% in the coming years, compared to the current 7–8%, which would significantly change the sector’s operating conditions.
He added that in the residential market, both supply and demand remain strong, allowing for organic growth. According to him, property prices are ultimately driven by demand, as well as factors such as political stability, economic conditions, and currency predictability.
