Comparison of Real Estate Prices in Tbilisi and Other Cities

Real estate prices in central urban areas have always been a focal point for both investors and buyers, often associated with higher social status, convenient access to infrastructure, and an enhanced quality of life. This premium on location significantly drives up property prices. In this analysis, we will explore real estate prices across different global cities, compare them to those in Georgian cities, and assess the risks and opportunities for investments.

Globally, real estate prices vary widely, largely influenced by a city’s economic conditions, quality of life, and infrastructure. According to Numbeo, Hong Kong has the most expensive residential real estate, with prices in central areas averaging $27,458 per square meter. Zurich follows with $25,428, then Singapore at $21,634, Seoul at $20,781, and Geneva at $20,694. These high prices reflect exceptional living standards, advanced urban development, and strong demand for housing.

Conversely, cities like Alexandria have significantly lower real estate prices, averaging just $423 per square meter. Other cities with relatively affordable real estate include Karachi at $537, Lahore at $630, Cairo at $648, and Port Elizabeth at $850. These locations are characterized by lower economic development and less demand for high-quality housing.

In Georgia, the average price per square meter in central Tbilisi is $2,032, while in Batumi, it is $1,247. With these figures, Tbilisi ranks 210th and Batumi 252nd globally. The Georgian real estate market relies heavily on tourism and foreign investment, which contributes to its relatively steady price growth.

For comparison, residential properties in Yerevan average $3,612 per square meter, significantly higher than in Tbilisi. In Istanbul’s city center, prices average $3,288 per square meter, while in Ankara, the figure is $1,546. In Baku, central real estate costs $1,956 per square meter, slightly below Tbilisi’s prices.

Purchasing real estate in central urban areas comes with both opportunities and risks. On the one hand, property values in central locations tend to rise steadily, making them attractive for long-term investments. High demand in these areas ensures better prospects for resale or rental, contributing to their appeal for investors.

On the other hand, high prices require substantial upfront capital, which can pose a significant risk, especially for buyers relying on loans. Moreover, central areas can be more volatile during global economic downturns, as property prices often shift rapidly in response to changing economic conditions. Inflation and rising interest rates can further challenge the profitability of such investments.

Forecasting real estate prices involves analyzing global and local economic trends. By 2025, it is reasonable to expect that real estate prices in central Tbilisi and Batumi will either remain stable or see slight increases. However, growth rates might slow due to internal political and economic factors. The expansion of tourism and the implementation of new infrastructure projects, such as international investments and transport network development, are likely to support price growth.

Globally, cities like Hong Kong, Singapore, and other leading financial hubs are expected to maintain their top rankings due to their status as global financial centers. However, given ongoing economic uncertainties, price growth may slow, influenced by financial and geopolitical changes affecting investor confidence and market stability.

As real estate continues to be a cornerstone of urban development and investment, understanding these trends is essential for making informed decisions. For Georgia, balancing the opportunities presented by tourism and foreign investment with the challenges of economic and political uncertainties will be key to sustaining growth in its real estate sector.