From Shopping Malls to Streetfronts: A Real Look at the Retail Property Market in Tbilisi and Batumi

Georgia’s retail commercial real estate sector is undergoing dynamic shifts, with Tbilisi and Batumi continuing to serve as the country’s primary retail hubs. As of 2024, Tbilisi hosts 10 modern, multifunctional shopping malls, with a combined gross leasable area (GLA) of nearly 292,000 square meters. This scale sets a new benchmark for retail infrastructure across the country and solidifies Tbilisi’s position as a leading retail center in the region.

Batumi, while significantly smaller in retail footprint, plays a vital role as a tourist magnet and regional commercial hub. The city is home to five main shopping malls, with a total GLA of 53,901 square meters. In regional cities such as Kutaisi, Zugdidi, and Telavi, the mall format differs — often combining enclosed retail centers with open-air marketplaces. Notably, Zugdidi added a fully modern shopping center in 2023, marking a key step in regional commercial development.

In 2024, average rent in Tbilisi’s malls reached $24.1 per square meter, representing a 7.4% year-over-year increase. Batumi showed similar upward momentum, with rents increasing 5% to $23.1. These trends highlight sustained demand for quality retail space in both the capital and coastal cities, making the market increasingly attractive to investors.

Street-level retail spaces in Tbilisi reflect even sharper trends. Average rents on central streets reached $31 per square meter, while Batumi’s average stood at $25.5. Tbilisi’s Rustaveli Avenue ($33.3) and Chavchavadze Avenue ($33.2) command the highest prices, driven by location, foot traffic, and strategic value. In Batumi, Gorgiladze Street leads the market, with average rents of $29.4, underlining the city’s strong tourism-driven demand and economic activity.

This landscape clearly shows that both Tbilisi and Batumi remain dominant players in Georgia’s retail sector — not only through modern malls but also through high-traffic street retail. Rising rental rates point to infrastructure development, high competition, and steady demand. In contrast, regional markets are progressing more gradually, though the opening of new-format centers demonstrates potential for further geographic expansion of commercial real estate.

Ultimately, the evolution of the retail market influences more than just property values — it shapes the economic momentum and urban future of cities across Georgia.