Tbilisi: New-construction prices rise by 5.9%, while supply exceeds demand
Newly built apartments in Tbilisi cost 5.9% more in the third quarter than they did a year ago. This was reported by the Georgian Statistical Office (Geostat) in its real estate price index dated October 23. Compared to the second quarter, prices rose by 1.5%. In the second quarter, the year-over-year increase had been 4.9%. Price growth thus accelerated by 1.0 percentage points. At that time, the increases were 4.8% for apartments and 5.5% for houses.
House prices are rising faster than apartment prices
Apartments rose by 5.6% year-over-year, while single-family homes rose by 7.0%. Compared to the 2020 average, the overall index is 66.2% higher. Geostat tracks only new construction. In its July 23 publication, the agency states: “The index covers the market for new residential properties in Tbilisi, including both apartments and single-family homes.” The quote has been translated from English.
The gap between neighborhoods remains wide. In Mtatsminda, an apartment costs 7,004 lari per square meter, while in Vake it costs 6,046 lari. In Saburtalo, the price is 4,444 lari; in Gldani, 3,830 lari; and in Samgori, 3,657 lari. For single-family homes, Vake leads at 4,517 lari per square meter.
The construction boom is meeting limited demand
The market is growing at a pace that exceeds demand. Colliers Georgia counted 87,000 apartments under construction in the spring, an 84% increase from 2021. In the first quarter, 10,550 apartments in Tbilisi changed hands, about 17% more than a year earlier.
Levan Chikava, Head of Research and Data Services at Colliers Georgia, said at the time: “In Tbilisi, supply significantly exceeds demand.” According to Colliers, about 90% of buyers in Tbilisi are Georgians. Colliers estimates prices in Tbilisi at $1,300 to $1,500 per square meter, representing an annual increase of about 10%. In Batumi, prices exceed $1,600, and foreigners account for 50% to 60% of buyers there.
The overall economy is providing a tailwind. Gross domestic product grew by 7.8% in the first half of the year, following 8.6% in the same period last year, according to Geostat.
For German exporters and investors, this means that demand for building materials, building services, and elevators remains high because thousands of apartments are under construction. Payment risk increases when developers build to stock and buyers fail to materialize. Those supplying Georgian developers should keep payment terms short and secure their receivables.
Sources: Geostat, Residential Property Price Index (RPPI) III quarter 2026, via Georgia Today (EN); Geostat, RPPI II quarter 2026 (EN); Colliers Georgia via Business Partner (EN); Geostat GDP via TBC Capital (EN)
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