The Evolution of the Georgian Real Estate Market: Expert Insights & Investment Opportunities

Over the past eight years, the Georgian real estate market has undergone a dramatic transformation. The residential property sector in Tbilisi has more than doubled in value, reaching $243 million, while Batumi real estate has experienced similar growth. Elias Marino, founder of Geo Estate agency, shares his insights on the reasons behind this expansion, the record-breaking $5.5 billion investment from Emaar Group, and the promising opportunities for investors.

— How has the Georgian residential real estate market evolved over the past eight years?

— The Georgian real estate market has experienced rapid growth. According to Colliers International, by February 2025, the residential real estate market in Tbilisi reached $243,230,009, up $126,704,094 from February 2018, when it was valued at $116,525,915. Similarly, Batumi's property market has grown to $63,640,485, marking an increase of $33,443,480 from $30,197,005 in 2018.

— What is your assessment of the current Georgian real estate market? Are there any new trends or developments?

— The market remains highly promising. A key milestone was the January 2025 memorandum signed in Abu Dhabi between the Georgian government and Emaar Group, one of the UAE’s largest real estate developers. This agreement includes a $5.5 billion investment in the Georgian property sector, leading to the development of Gonio Marina, a 260-hectare luxury complex on the Black Sea coast. The project will feature marinas, branded residences, luxury hotels, and shopping centers.

— How has the demand for real estate in Georgia changed in recent years?

— The increasing volume of foreign investment in Georgian real estate is a clear indicator of the sector’s attractiveness. By February 2025, Tbilisi recorded 3,205 residential property transactions, marking a 15% increase compared to February 2021. Meanwhile, Batumi recorded 1,177 transactions, a 60% surge over the same period.

— How do Tbilisi and Batumi compare in terms of real estate investment potential?

— Both Tbilisi and Batumi attract strong foreign investor interest. However, their markets differ significantly. Tbilisi real estate is more stable due to its role as the capital, while Batumi's market experiences pronounced seasonality. That said, investors are increasingly drawn to year-round wellness resorts, premium hotels, and rehabilitation centers in Batumi, making it an attractive market beyond the summer season.

— What are the current property prices in Tbilisi and Batumi?

— As of February 2025, the average price per square meter in Tbilisi stands at $1,157/m², reflecting a $90 increase from 2024. Batumi real estate prices reached $1,179/m², up $165 year-over-year. This upward trend highlights the continued growth of the Georgian real estate sector.

— Which types of properties are most in demand?

— Among different categories—premium, comfort, middle, and economy classes—the premium and comfort segments are experiencing the most substantial growth. In 2024, the Batumi premium market expanded by 11.7%, while the comfort segment grew by 29.7%. Similarly, Tbilisi’s premium sector grew 29.9%, and its comfort segment increased by 29.3%.

— Is the primary or secondary market leading in demand?

— In February 2025, the number of transactions in new developments in Tbilisi declined by 2%. However, it is important to note that some transactions in new projects on the primary market are recorded by developers later, which can sometimes distort the data and not fully reflect the actual market activity. Meanwhile, in the secondary market, the decline was much more pronounced—sales of older apartments fell by 27.2% compared to February 2024. This trend highlights a growing investor preference for newly developed properties over older ones.

— What apartment sizes are most popular among buyers?

— Larger, multi-bedroom apartments are in high demand, particularly among families. These properties tend to be scarcer in new developments, making them highly liquid investment options in both Tbilisi and Batumi.

— When is the busiest season for real estate transactions in Georgia?

— Historically, the highest volume of property sales occurs toward the end of the year, driven by seasonal investment cycles and buyer activity.

— What trends are emerging in Georgia’s resort real estate sector?

— The Black Sea region is undergoing significant development. Gonio is set to host Georgia’s first all-inclusive Wyndham Grand 5 resort*, featuring four hotel complexes, a spa, restaurants, aqua parks, and over 100 premium amenities. The project is expected to be completed by late 2025.

Additionally, Batumi has launched sales for Georgia’s first artificial island, an 84-hectare luxury development featuring villas, skyscrapers, entertainment venues, and commercial hubs. The project is set for completion by 2040.

— Which nationalities are investing most in Georgian real estate?

— According to Galt & Taggart, foreign investment in Batumi accounted for 90% of total real estate transactions in 2024. The top investor nationalities include:

• Russia – 27%

• Israel – 11%

• Poland – 7%

• Turkey – 5%

• Ukraine – 4%

• Germany – 3.8%

• USA – 3%

• Other countries – 39.2%

In Tbilisi, 85% of real estate buyers are Georgian citizens, followed by Russian and Israeli investors (4% each).

— How can investors profit from Georgian real estate?

— There are two primary ways to generate returns:

1. Capital Appreciation: Buying preconstruction properties and selling upon completion can yield an ROI of up to 30% per year.

2. Rental Income: International hotel management companies like Ambridge Hospitality offer 5-9% ROI annually, thanks to their partnerships with global travel agencies and package tour operators.

   
   

— What does the future hold for Georgia’s real estate market?

— The Georgian real estate market remains a prime investment destination. The influx of foreign capital, the launch of mega-projects, and steady property price appreciation confirm Georgia’s position as one of the most lucrative real estate markets in the region.

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