Tbilisi Real Estate Market Dynamics and Strategic Forecasts

Tbilisi’s real estate market continued to grow dynamically in 2024, as evidenced by the increase in total transactions. According to Colliers’ research, residential property sales reached 41,284 units, reflecting a 2% increase compared to 2023. Moreover, the total financial volume of the market rose by 12%, reaching $2.8 billion USD. This indicates both a rise in transaction numbers and an increase in property prices, likely driven by high demand and limited supply capacity.

Key Areas of Market Activity

In 2024, the most active districts in Tbilisi’s real estate market were:

• Samgori – 8,287 transactions
• Didi Dighomi – 8,207 transactions
• Saburtalo – 7,692 transactions

These districts’ popularity is attributed to urban infrastructure development, new residential complexes, and relatively affordable housing prices, attracting both local and foreign buyers.

In contrast, districts with lower market activity reflect varied housing market dynamics:

• Gldani, Didube, and Nadzaladevi continue to experience stable demand, primarily for lower-cost apartments, making them attractive to middle-income families.
• Vake, Mtatsminda, and Krtsanisi, which belong to the premium segment, recorded fewer transactions but higher average property values, confirming their status as elite real estate markets.
• Isani, Bagebi, and Ponichala are experiencing moderate yet growing transactions, with potential for investment due to ongoing infrastructure improvements and residential project expansion.

Additional transaction statistics by district:

• Gldani – 4,217
• Didube – 3,951
• Nadzaladevi – 3,797
• Chugureti – 1,150
• Vake – 843
• Krtsanisi – 1,240
• Mtatsminda – 847
• Isani – 528
• Bagebi – 230
• Ponichala – 172
• Tskneti – 65
• Didgori – 58

Market Segmentation: Mass Housing vs. Premium Real Estate

These figures highlight a clear division between mass-market housing districts and premium segments:

• Samgori and Didi Dighomi are emerging as mass-market residential hubs, attracting buyers with affordable pricing and growing infrastructure.
• Vake, Mtatsminda, and Krtsanisi maintain their status as premium districts, where transaction volume remains low, but prices remain high.

Factors Driving Market Growth

The market’s expansion is influenced by both local and global factors, including:

1. Migration Trends – Tbilisi continues to attract both domestic and foreign buyers, particularly in central and high-growth districts.
2. Foreign Investment – Increasing international interest in high-end residential properties is fueling additional demand.
3. Mortgage Lending Policies – The availability of flexible mortgage loans in 2024, with lower interest rates, made property purchases more accessible.

Future Market Outlook: 2025 and Beyond

The real estate market’s trajectory in 2025 will be closely tied to financial and lending policies:

• If commercial banks maintain flexible mortgage policies, demand for residential properties is likely to remain strong.
• If credit conditions tighten in 2025, sales growth may slow down, impacting transaction volumes.

Overall, Tbilisi’s real estate market remains highly active, with demand shifting based on affordability and investment opportunities. Monitoring financial policies, infrastructure development, and investment trends will be key to understanding the market’s long-term direction.