Apartment Sales Decline While Prices Continue to Rise in Tbilisi – Real Estate Pulse, April 2025

Tbilisi’s real estate market revealed notable shifts in April 2025: while the number of apartment sales is decreasing, prices continue to rise. According to the latest report by Colliers Georgia, a total of 3,256 residential apartments were sold in the capital last month—2.6% less than in April 2024. However, despite the decline in transactions, the overall monetary volume of the market increased by 6.6%, exceeding $244 million. This suggests that rising apartment prices have partially offset the drop in transaction numbers.

In terms of pricing, the market is far more dynamic. New-build apartment prices have seen a sharp increase: in the wider central districts, the average weighted price rose by 12.9%; in the city center by 6.7%; and in the suburbs by 8.1%. This trend is primarily driven by the activity in the primary market—citywide, the average price of new-build apartments rose by 13.8%, while secondary market prices for the same segment grew by just 5.5%.

Overall, the annual increase in residential apartment prices stands at 6.8%. In April 2024, the average weighted price per square meter in Tbilisi was $1,094; this year, it has increased to $1,168. This change clearly signals a shift in demand and buyer focus toward higher-quality, newly built apartments—especially in light of the improved infrastructure and energy efficiency offered by new developments.

The simultaneous trend of rising prices and declining transactions can be seen as a complex economic indicator. On the one hand, price growth continues to stimulate investor interest, particularly from foreign capital seeking stable and growing markets. On the other hand, for local buyers—especially those in low- and middle-income brackets—homeownership is becoming increasingly unaffordable.

These developments underscore that the Tbilisi real estate sector will remain a key player in Georgia’s economy. However, to ensure a balanced market, it will be essential to expand access to affordable housing and implement smart regulations, so that the market does not become an exclusive domain for high-income segments only.