New Dynamics in Tbilisi’s Real Estate Market – Rising Prices and Sales in June 2025

June 2025 marked a significant turning point for Tbilisi’s real estate market, with both sales and prices reaching new highs. According to the latest report from TBC Capital, a total of 3,236 apartments were sold during the month—an 11% increase compared to the same period last year. While this growth is partly driven by a low base effect from 2024, the data clearly signals a strengthening demand trend.

Key Market Highlights

• Average apartment sale price:
  Reached a new benchmark of $1,269 per square meter, reflecting an 8% annual increase. This rise is attributed to both the escalating cost of construction materials and a renewed wave of buyer interest.
• Total market value (June 2025):
  Surged to $264 million, representing a 19% year-over-year growth, underscoring both increased transaction volume and higher per-unit pricing.

The Rental Market Paradox

Interestingly, while sales prices climbed, rental prices declined:

• Average rent per square meter:
  Fell by 11% year-over-year, now averaging $10.4/m².

This contrast likely stems from increased rental supply, including units from newly completed and secondary market properties, which is intensifying competition among landlords and driving down rents.

Interpreting the Trends

The current real estate landscape reveals a dual dynamic:

• For buyers, rising prices signal confidence in the market and its investment potential, albeit at a higher entry cost.
• For renters, the expanding supply means greater affordability and more choice, creating a more mature, competitive rental environment.

Meanwhile, the consistent growth in transaction volume and market value confirms that Tbilisi’s real estate sector remains one of the most vibrant and attractive components of Georgia’s economy in 2025.

As the market continues to evolve, the interplay between price trends, buyer demand, and rental dynamics will be crucial in shaping both investment strategies and policy decisions in the months ahead.