Analysis of Real Estate Prices by Districts in Tbilisi

The real estate market in Tbilisi is constantly evolving, influenced by both local and global trends. In August 2024, the number of apartments sold in Tbilisi totaled 3,138 units, which is 8.3% less compared to August of the previous year. These changes reflect the impact of economic and social factors on the real estate market, including inflation, access to loans, and efforts to improve the quality of life.

In Tbilisi, real estate prices per square meter vary significantly across different districts. The highest prices are recorded in Mtatsminda, where the average price per square meter is $2,658. Mtatsminda is notable for its historical and cultural heritage, which drives high demand for living in this area. Additionally, its central location, panoramic views, and proximity to major city landmarks are significant factors that contribute to the increase in prices.

In Vake, the average price is $2,271, making it another one of the most expensive districts. Vake is known for its developed infrastructure, high-quality schools, restaurants, and services. This district is particularly popular among both local and foreign buyers who seek a high standard of living.

In Chugureti, the price per square meter is $1,675. Chugureti is distinguished by its cultural and architectural diversity, making it especially attractive for young buyers and investors looking for renovation projects in old, historic buildings. The unique atmosphere of this district also makes it popular in the real estate market.

Saburtalo also stands out with relatively high prices, with an average cost of $1,539 per square meter. Saburtalo is characterized by its modern infrastructure, business centers, and commercial spaces, making it convenient for both residential and business purposes.

Prices are significantly lower in districts such as Vashlijvari and Didi Digomi, where the price per square meter is $952 and $997, respectively. These districts, despite their relatively low prices, are popular among buyers looking for more affordable and peaceful residential environments. Vashlijvari and Didi Digomi are mainly favored by families seeking to live near the city but in a quieter setting.

Similarly, Isani and Nadzaladevi offer relatively low prices, with the cost per square meter being $1,219 and $1,162, respectively. These districts provide a diverse range of options for both residential living and investment. Both areas are distinguished by developed infrastructure, schools, public transport accessibility, and commercial facilities, making them attractive to buyers.

A comparison of real estate prices in Tbilisi with other international cities shows that despite significant growth in recent years, Tbilisi remains a relatively affordable city in terms of real estate. For example, in Manhattan, New York, the price per square meter exceeds $13,000, which is significantly higher than even the most expensive districts in Tbilisi. The high prices in New York are driven by its global significance, role as a financial hub, and cultural diversity.

In central districts of London, the price per square meter reaches $10,000, while in Paris, it ranges around $11,000. Both cities are global tourist and cultural centers, which explains the high cost of residential real estate. The real estate market in London and Paris offers investors high stability and security, which in turn increases demand and prices.

In other European cities, such as Berlin and Warsaw, prices are relatively lower. In Berlin, the average price per square meter is approximately $5,500, while in Warsaw, it is $3,000. These prices are considerably higher than those in central Tbilisi, but the real estate markets in Berlin and Warsaw are more stable and dynamic. Berlin is known for its innovative and cultural lifestyle, which attracts both local and international investors.

In Ankara, Turkey’s capital, the price per square meter is on average $1,200, which is relatively close to the average prices in Tbilisi. However, in Istanbul, where the real estate market is characterized by high demand, the price per square meter reaches $4,000. The high prices in Istanbul are due to its historical and economic significance, as well as its strategic location, which makes the city Turkey’s economic center.

A similar situation exists in Batumi, where coastal real estate is characterized by higher prices. Batumi is a tourist city, which increases the demand for real estate, especially during the summer season. Investors in Batumi primarily seek commercial and investment opportunities, contributing to the rise in prices. Despite this, Tbilisi remains a relatively affordable city, with competitive real estate prices lower than international standards.

As of 2024, the real estate market in Tbilisi shows a varied picture across different districts, influenced by the level of development and residents’ demand. Mtatsminda and Vake remain the most expensive districts, due to their historical and cultural value, central location, and high-quality living conditions. Price growth in these districts is likely to continue due to constant demand for high-quality real estate, while supply remains relatively limited.

On the other hand, Vashlijvari and Didi Digomi offer more affordable alternatives, which is one of the reasons for their growing popularity. The development of infrastructure projects and improvement of living conditions in these districts could be key factors in promoting moderate price growth. Additionally, more remote districts of Tbilisi, such as Samgori and Gldani, also attract buyers seeking comfortable and affordable housing, which also affects prices.

In the future, real estate prices in Tbilisi may increase, especially in districts that continue to develop infrastructure projects and improve living standards. Economic growth and the development of the tourism sector may also boost demand for both residential and investment real estate. Nevertheless, the stability of the market depends on economic and social factors, which is why the development of the Tbilisi real estate market requires appropriate regulations and government support to keep prices affordable for both local residents and foreign investors.

Global trends show that real estate markets are often influenced by factors such as economic stability, foreign investments, and improvements in quality of life. In Tbilisi, as in other cities around the world, it is important that improvements in living conditions and infrastructure development are reflected in prices, making the market more accessible and stable. Government support for the real estate sector and the implementation of appropriate regulations are necessary to reduce the risk of unjustified price increases and ensure sustainable market development.