Buying a New or Old Apartment in Tbilisi – Which is the Better Choice Today?

Tbilisi’s real estate market is undergoing significant changes, shifting the balance of interest between new and old apartments. According to TBC Capital, in December 2024, sales of new apartments increased by 48%, while transactions for old apartments declined by 2%. This indicates that new developments are attracting more buyers, though it does not necessarily mean that old apartments are a less profitable choice.

Market prices remain stable—both new and old apartments saw a 2% annual increase per square meter, although there was a 2% decline compared to November. One factor that could impact future trends is the 4% decrease in construction permits. This suggests that the supply of new apartments may shrink in the coming years, which could push prices higher.

For buyers looking to rent out their property, a key indicator is the rental yield, which has fallen to 9.6%. This figure is calculated as the ratio of a property’s annual rental income to its market value. In other words, on average, an apartment owner in Tbilisi earns 9.6% of their investment per year from rental income (before deducting expenses and taxes). While this is lower than in previous years—rental yield peaked in 2022—it remains quite high in a global context. In European cities, rental yields typically range between 4-6%, and in some developed markets, they do not exceed 3%. Thus, despite the decline, Tbilisi’s rental market still holds investment appeal.

For those looking to buy an apartment for personal residence, new apartments are often the more comfortable choice. Modern standards, energy efficiency, and new renovations improve the quality of living and reduce additional expenses. Since new constructions are slowing down, their prices are likely to rise faster over time. However, this option often requires advance payments and consideration of construction completion timelines.

Old apartments are often located in better-established districts, such as Saburtalo, Vake, Isani, and Nadzaladevi, where urban infrastructure is already well-developed. Didi Dighomi remains a sales leader due to its more affordable prices and high demand for new apartments. In some areas, old apartments are priced more competitively per square meter, especially if they require renovations. For buyers interested in renting out their property, old apartments in central districts remain a reliable choice, as demand in these areas is consistently high.

For long-term investment, new apartments may offer greater returns, as limited supply could drive up their prices. If rental income is the main priority, old apartments may provide a more stable option, particularly in areas with fewer new developments. Ultimately, the best choice depends on the buyer’s budget, priorities, and long-term goals.