Among all the post-Soviet republics, Georgia continues to hold a leading position in housing demand from foreigners. What explains this allure of the Georgian market, and what awaits investors in the new season?
Since the beginning of the decade, the local real estate market has shown impressive dynamics. Low entry prices, investment appeal, and an emotional connection to the post-Soviet space have created a solid foundation for years of growth. Until recently, double-digit growth in prices and rental rates was the norm.
Today, the market has entered a phase of moderate growth. After several years of active price increases and a brief pause caused by political events earlier in the year, prices have stabilized. According to a report by Galt & Taggart, over the past 12 months, apartments in Tbilisi have increased in price by an average of 4%, reaching the $1,400 per sq. m mark. In the elite Mtatsminda district, prices have surpassed $3,000. The capital's main appeal, however, lies in its high rental yield, which currently stands at 8–9% per annum.
Batumi, meanwhile, remains the most diverse and accessible market. Here, it's possible to find off-plan options: studios from $25,000 or one-bedroom apartments near the beach for $40,000–$50,000 without renovation. The resort is also developing in the premium segment: work began last year on creating an artificial island in the city center, featuring projects managed by international hotel chains.
An interesting trend is the growing demand in the secondary market. According to Colliers Georgia, sales here have increased by 15%, with foreigners (Russians, Ukrainians, Israelis) primarily choosing newer buildings (the "new secondary" market), which have seen an 11% price increase.
The relocation wave of 2022–2023 has subsided, giving way to purely investment demand and purchases of "vacation homes." At the same time, the authorities continue to gently tighten the rules: starting March 1, 2026, the threshold for obtaining residency through property purchase will increase from $100,000 to $150,000.
Nevertheless, Georgia's main advantages remain intact: a low entry barrier, high rental income potential, and transaction transparency. These are precisely the things its neighbors lack in the battle for investors' wallets.
