Real Estate Market in Georgia, Results of 2024

Activity in the Georgian real estate sector continues to increase. New projects in Tbilisi and Batumi are in the greatest demand, such properties are bought up even at the construction stage. The market volume by the end of 2024 has again increased. In terms of profitability and the simplest, most transparent terms for concluding transactions, Georgia is still ahead of many countries in the world.

Tbilisi

Colliers Georgia reports that in 2024, the number of apartment transactions in Tbilisi increased by 2% compared to 2023 - to 41,284. The market volume grew by 12% and amounted to 2.8 billion US dollars. In new projects, 8.5% more contracts were concluded. In the secondary market, activity indicators are lower, but the average weighted price rose by 13% year-on-year in the suburbs and by 15% in the city center.

In December, 4,039 sales were recorded in the capital of Georgia, which is 7% higher than the level of the same period in 2023. The number of transactions in new projects increased by 14%, and price growth fluctuated between 1% and 13% depending on the location. The indicator for old apartments, as at the end of the year, slightly decreased, and the cost increased by 16% in the suburbs and by 18-23% in various areas of the city.

Earlier, Galt & Taggart published a study on the Tbilisi market in November 2024, noting that the number of sales from 16 major developers increased by 12.3% in a month. About 96% of apartments at that time had already been sold in projects completed in 2024. In 2025, this figure is expected to be 71%.

Experts noted that prices on the primary market of Tbilisi in November reached $ 1,312 per square meter. The number of construction permits increased by 74.3% year-on-year. Trends in concluding transactions with foreigners have changed. The share of Russian buyers decreased from 7% to 2% of the total, and Israeli ones increased from 4% to 12%.

The most expensive apartments were sold in November in the Mtatsminda district - $ 2,675 per sq. m in new projects and 1,632 for old housing. In second place is Vake - 2,378 and 1,425. Then, on the primary market, the Chugureti district came out on top - $ 1,837, and in terms of prices for existing apartments, Saburtalo was among the top three - $ 1,140. The cheapest housing was sold in Vashlijvari - $ 991 per sq. m. on the primary market and 1,096 on the secondary market. Didi Digomi and Gldani were also at the bottom of the price rating.

The average rental yield in Tbilisi is estimated by Galt & Taggart experts at 9%. This is higher than in the capitals of many other countries.

Batumi

In 2024, 15,034 apartments were sold in Batumi, according to Colliers Georgia, the market volume increased by 6% and amounted to 778 million US dollars. The average weighted price of new buildings increased by 7% compared to 2023, and housing on the secondary market increased in price by 4%. In December, 1,426 sales contracts were registered, which is 19% more than last year. The market volume increased by 28% to 76 million dollars. The number of transactions with new buildings in Batumi increased by 23% compared to last year, the price increased by 11% - to 1,114 dollars. The cost of old apartments increased by 0.2% - to $ 985 per sq. m.

Galt & Taggart noted that real estate sales to Israeli citizens in Batumi increased by almost 55% year-on-year in the third quarter of 2024. The market in this city remains one of the most profitable, and prices continue to rise, albeit at a slower pace.

For the first 9 months of 2024, the total market value of apartments sold in the capital of Adjara amounted to $675.5 million. If the interest of foreign buyers remains, residential properties will continue to rise in price. Experts also recorded an increase in sales and prices in Bakuriani and emphasized that properties located in Batumi are leading in terms of profitability in Georgia as a whole.

Forecasts for 2025

Georgian Prime Minister Irakli Kobakhidze noted that the 9% increase in GDP by the end of 2024 demonstrated positive indicators of the country's economic trajectory. He believes that it is quite realistic to exceed GDP growth by 10% in 2025, there is potential for this.

Georgian Economy Minister Levan Davitashvili explained that different scenarios are being considered. The baseline scenario currently assumes economic growth of 6%, but a more positive forecast is possible if political tensions ease and significant changes occur in the international arena. Improving relations with strategic partners can also have a positive impact.

Davitashvili added that the government will strive to maintain political stability and develop a dialogue "with key economic actors", including the private sector, international investors and financial organizations. This will ensure significant progress in the economy and "prevent a slowdown in consistent development".

The World Bank predicted that in the period from 2024 to 2026, Georgia will have the highest average economic growth in the Europe and Central Asia region - 6.7%. The bank revised its estimates for the country's development, increasing the forecast for 2024 to nine percent, which is 3.8 percentage points higher than it was forecast in June 2024. The growth forecast for 2025 was also raised to six percent, which is one percentage point higher than the previous estimate. The IMF also increased its forecast indicators for Georgia, as did many other international rating agencies.

(c) Materials from the site https://internationalinvestment.biz/

(c) Photo: Tatyana Borodina