Affordable Apartments Are Disappearing in Tbilisi – How Rising Prices Are Reshaping the Market

One of the most noticeable shifts in Tbilisi’s real estate market in recent years is the sharp decline in the share of affordable apartments amid steadily rising prices. Just two years ago, nearly two out of every three apartments sold were priced under $1,000 per square meter. Today, that segment accounts for less than half of the market (source: Galt & Taggart).

In February 2023, budget-friendly homes made up the clear majority of sales. By February 2025, their share had almost halved. This means that finding apartments in the lower price range has become significantly harder, especially for first-time buyers, young families, or people with average incomes. At the same time, the market is gradually shifting toward mid- and high-priced segments, where homes are more expensive and therefore less accessible for many.

This trend isn’t just about statistics—it has real implications for buyers. The gradual disappearance of the affordable segment reduces options for those who previously could count on a modestly priced home to get on the property ladder.

Prices have steadily climbed. As of February 2025, the average price in the primary market reached $1,334 per square meter. In high-demand districts like Saburtalo and Vake, prices are even higher. However, there are still a few neighborhoods—like Didi Dighomi and Vashlijvari—where prices hover near the $1,000 mark. These areas, with a steady supply of new developments, remain some of the last pockets where relatively affordable housing is still available.

Meanwhile, rental prices have remained relatively stable, even slightly declining in recent months. That raises a question: with property prices rising and rents staying flat, is buying still a financially sound decision?

The shrinking of the budget segment may pose challenges not only for buyers but also for developers. Some may start to reconsider whether they should return to more affordable projects. Even if prices don’t fall, a more balanced market could only be achieved if the supply becomes more diverse—especially bringing back the kinds of homes that are now quietly vanishing.