Tbilisi’s Private Housing Boom: What’s Fueling the Surge in Property Prices?

In the first quarter of 2025, Tbilisi’s real estate market once again confirmed its upward momentum. According to new data from the National Statistics Office of Georgia (Geostat), private house prices have increased by 13.5% year-over-year, with a quarterly rise of 1.8% compared to Q4 of 2024. This trend reflects a deeper cycle tied to urban development and evolving housing demand patterns in the city.

Price disparities across districts remain pronounced. Mtatsminda, as expected, tops the list with an average price of 4,687 GEL per square meter. Its historical significance, touristic appeal, and high-end residential status, coupled with ongoing renovation and infrastructure projects, continue to drive its premium value.

Vake follows closely with an average price of 4,138 GEL per square meter. Vake’s value stems from its central location, abundant green spaces, and high-quality infrastructure. Despite ongoing new developments, Saburtalo remains highly sought after, with average prices around 3,567 GEL per square meter.

Other districts show lower but still growing prices: Didube at 3,858 GEL, Krtsanisi at 2,903 GEL, and Isani at 3,172 GEL. The most affordable areas remain Gldani and Nadzaladevi, averaging 2,767 GEL per square meter, followed by Samgori at 2,780 GEL and Chughureti at 2,954 GEL.

Several key factors are driving this price growth. One of the most significant is increasing demand for residential space, fueled by both internal migration and rising interest from foreign nationals seeking property in the capital. Globally, there’s a growing preference for areas that offer more privacy and tranquility than apartment buildings can provide.

Another contributing factor is the rise in construction costs, largely driven by global increases in material prices. Since Georgia relies heavily on imported construction materials, international inflationary trends are directly impacting housing costs. Additionally, the enforcement of new construction regulations aimed at improving quality is pushing market prices higher.

Moreover, interest rate cuts introduced by Georgian banks at the beginning of 2025 have stimulated demand. Lower mortgage rates, especially for young families, have boosted buying activity, further intensifying upward pressure on property values.

This creates a market where demand outpaces supply, particularly for high-quality private homes. As a result, prices are expected to continue climbing in the coming months—especially in districts with high development potential and ongoing municipal infrastructure projects.

Tbilisi’s real estate market is currently balancing between stabilization and sustained growth. The current dynamics in private housing prices clearly illustrate how urban expansion and economic stability remain key drivers of this ongoing real estate surge.