How the Tbilisi Real Estate Market Has Changed Over the Last 5 Years: Trends and Forecasts
Over the past five years, the Tbilisi real estate market has undergone significant changes, reflecting both internal economic processes and external factors. Let’s explore the key trends and forecasts for this market’s development.
Overall Market Growth
From 2020 to 2024, the Tbilisi real estate market showed steady growth. In 2024, a total of 41,284 apartments were sold, marking a 2% increase compared to the previous year. The total transaction value reached $2.8 billion, reflecting a 12% rise from 2023.
Price Dynamics
Average apartment prices in Tbilisi continued to rise. In 2024, price growth was particularly notable in the city center (+15%) and suburban areas (+13%). By December 2024, price increases accelerated, especially in the secondary housing segment.
Demand and Sales Structure
In 2024, sales in new developments increased by 8.5%, whereas transactions in older buildings declined by 13%. In December 2024 alone, 4,039 apartments were sold, 7% more than in December 2023.
In January 2024, 3,100 apartments were sold, marking a 6.3% increase compared to January 2023. Sales growth was driven by heightened activity in the primary market, where 1,600 units were sold—21.2% more than in January 2023. Meanwhile, sales in the secondary market declined by 5.8%.
Sales Distribution by Districts
The highest number of sales in 2024 was recorded in Didi Dighomi, Samgori, and Saburtalo districts, while the lowest sales were seen in Chugureti, Vashlijvari, and Mtatsminda. The highest property prices were recorded in Mtatsminda ($2,650 per sq.m), Vake ($2,207 per sq.m), and Saburtalo ($1,534 per sq.m). The lowest prices were observed in Gldani ($1,033 per sq.m), Didi Dighomi ($1,023 per sq.m), and Vashlijvari ($962 per sq.m).
Changes in Buyer Demographics
In 2024, the structure of foreign buyers shifted. The share of Israeli citizens in total real estate transactions increased from 4% to 11%, while the share of Russian buyers declined from 7% to 2%. This indicates increased market diversification and growing interest from investors in different countries.
Future Forecasts
In the coming years, the Tbilisi real estate market is expected to continue growing, although at a potentially slower pace due to market saturation and possible economic fluctuations. Foreign investor interest in Tbilisi real estate remains high, which will further contribute to the market’s development.
Conclusion
Over the past five years, the Tbilisi real estate market has shown dynamic growth and structural changes. Understanding these trends and forecasts is crucial for successful investment and making informed real estate decisions.
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