Tbilisi Real Estate Market: Prices Are Rising, Rents Are Falling — Who Wins and Who Loses in the New Reality?

In April 2025, two key trends emerged in Tbilisi’s real estate market, reflecting not only overall market growth but also a shift in its internal dynamics. According to a report by TBC Capital, a total of 3,206 apartments were sold in the capital during the month — a 0.4% increase year-over-year. Yet what proves far more telling is how sales prices and the rental market are evolving alongside this modest growth in volume.

The average sale price per square meter reached $1,255 in April 2025 — a 4% increase compared to the same month last year. This rise clearly indicates that demand remains high, driven by new residential projects and improved infrastructure that continue to attract both domestic and international buyers. At the same time, apartment prices are approaching historical highs, which creates growing affordability challenges for buyers while also stimulating increased investment in the construction sector.

In contrast, the rental market presents a different picture: the average rental price per square meter in April stood at $10.7, reflecting a 12% decline compared to 2024. This drop could be attributed to market saturation or a decrease in demand for temporary housing due to slowed migration or shifts in tenant behavior. As a result, the annual rental yield — the return on investment from leasing property — fell by 1.6 percentage points, landing at 9%. In this scenario, investors focused on rental income find themselves in a less favorable position, while only sellers and developers benefit from rising property values.

The total transaction volume in the market also grew — the value of real estate deals in Tbilisi during April reached $266 million, a 5% increase year-over-year. These figures reaffirm that the city’s real estate sector remains active and continues to hold investment potential, although investors now face a more complex landscape requiring closer attention to varying trends within the sector.

In conclusion, the current state of Tbilisi’s real estate market is marked by diverging yet equally important developments: apartment prices are on the rise, while rental prices are in decline. This dynamic creates new opportunities and risks for both buyers and investors, who will increasingly need deeper market insight and strategic awareness to make informed decisions going forward.