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Georgia’s new construction starts are divided almost evenly between two geographies: Tbilisi and the rest of the country. In January–June 2026, the capital accounted for 49.2% of all construction permits. This is the clearest indicator of where new projects are concentrated, but it is not a direct measure of construction value or floor area. Tbilisi’s share of commissioned objects was only 31.9%, showing that the maps of project starts and completions differ substantially.

What “half of construction” actually means

Geostat reports that Georgia issued 5,391 construction permits in January–June 2026. Tbilisi’s 49.2% share corresponds to approximately 2,652 permits, while about 2,739 were issued across the rest of Georgia. Both counts are estimates derived from the published share, not separately reported exact totals.

The accurate interpretation is therefore that almost every second permit was issued in Tbilisi. The data do not say that the capital received half of permitted floor area, investment, apartments or construction value. A private house and a large apartment complex each count as one object. Object shares reveal concentration well, but not full economic scale.

How large is the capital’s lead?

Kvemo Kartli ranked second with 9.2% of permits, making Tbilisi’s share about 5.3 times larger. Tbilisi, Mtskheta-Mtianeti and Kvemo Kartli together accounted for 64.9% of permits. The three administrative units do not constitute an official metropolitan area, yet their combined weight suggests that the country’s principal construction axis is forming in and around the capital.

Note: shares refer to object counts, not floor area, value or number of apartments.

Why construction concentrates in Tbilisi

The capital brings together population, jobs, higher education, healthcare, administration, finance and the country’s deepest property market. For developers, this means a larger pool of buyers, more established sales channels and broader financing options. High land prices raise costs, but they also encourage denser, multi-storey development.

The National Bank of Georgia reported that 60% of residential real estate market activity was concentrated in Tbilisi in the first half of 2025, with Georgian residents generating roughly 90% of demand in the capital. This covers a different period and market segment from the 2026 permit data, but it supports the underlying economic logic: where transactions and domestic demand are deeper, starting new supply is easier.

Starts and completions show two different Georgias

Tbilisi’s 49.2% permit share contrasts with its 31.9% share of commissioned objects, a gap of 17.3 percentage points. This does not prove that construction is slower in the capital. Many objects completed in 2026 were probably permitted earlier, while large and complex urban projects naturally require longer cycles.

Mtskheta-Mtianeti and Kakheti had completion shares above their permit shares, indicating that more previously started objects were entering use there during the period. Tbilisi is the centre of new starts, while the current distribution of completed assets is less centralised.

The economic cost of concentration

Construction concentration is not merely a property-market issue. Each residential or commercial project increases demand for roads, water, sewerage, power, schools, public transport and public space. When private development outpaces infrastructure, a city gains buildings but also faces congestion, service deficits and pressure on living standards.

A second risk is the strengthening of economic gravity. Construction follows jobs and population, then reinforces their concentration. More demand attracts more building; more building attracts services and capital; and those additions make the capital even more attractive.

Where the opportunity lies

According to BTU researchers, Tbilisi’s 49.2% share is both a sign of market depth and a measure of spatial imbalance. The business opportunity is not confined to central districts. The 64.9% permit concentration in Tbilisi, Mtskheta-Mtianeti and Kvemo Kartli raises demand for intercity mobility, logistics, warehousing, everyday services and suburban infrastructure.

Regional opportunity should not mean copying Tbilisi. Adjara can deepen its urban-tourism pole; Kakheti can connect tourism, agribusiness and services; Kutaisi and other cities can build demand around education, production and logistics. Construction becomes a durable economic space only when it is accompanied by permanent jobs, transport and local services.

What the market should watch

Developers should not treat Tbilisi’s high share as an automatic guarantee. Concentration deepens the market but also intensifies competition. Permit floor area, project type, sales pace, prices, completion schedules and neighbourhood infrastructure must be assessed together. Buyers benefit from more choice, but completion risk, transport and service quality may matter as much as price.

For government, 49.2% is a signal for spatial policy. If jobs and services continue to be created mainly in Tbilisi, the permit share will remain high. Regional rebalancing cannot be achieved through construction incentives alone; it requires stronger economic functions, fast connections, education, healthcare and municipal capacity.

The bottom line

Almost half of Georgia’s new construction starts are concentrated in Tbilisi. This confirms the capital’s economic gravity, but its 31.9% share of completions shows that not every stage of the construction cycle is equally centralised. The decisive question is no longer simply how many buildings Tbilisi will add. It is whether infrastructure can serve that growth and whether the rest of Georgia can develop economic centres where construction is followed by durable demand.

Sources

1. National Statistics Office of Georgia – Construction Permits and Commissioned Objects, January–June 2026.
2. National Statistics Office of Georgia – Construction Permits and Commissioned Objects Data Page.
3. National Bank of Georgia – Financial Stability Report 2025.

Data cut-off: 6 August 2026.

BTUAI.ge backend fields – English article

Research type

Data-driven business analysis of the geographic concentration of construction activity in Georgia.

Research methodology

Comparative analysis of official January–June 2026 data; comparison of regional shares in permits and commissioned objects; independent double-checking of Tbilisi’s estimated permit count, percentage-point gap and regional concentration; cross-check against the National Bank of Georgia’s real estate market assessment.

Data sources

Source name:
National Statistics Office of Georgia – Construction Permits and Commissioned Objects, January–June 2026
URL:
https://www.geostat.ge/ka/single-news/3813/informatsia-msheneblobaze-gatsemuli-nebartvebisa-da-ekspluatatsiashi-mighebuli-obiektebis-shesakheb
Dataset:
Yes

Source name:
National Statistics Office of Georgia – Construction Permits and Commissioned Objects Data Page
URL:
https://www.geostat.ge/ka/modules/categories/621/informatsia-msheneblobaze-gatsemuli-nebartvebisa-da-ekspluatatsiashi-mighebuli-obiektebis-shesakheb
Dataset:
Yes

Source name:
National Bank of Georgia – Financial Stability Report 2025
URL:
https://nbg.gov.ge/fm/%E1%83%9E%E1%83%A3%E1%83%91%E1%83%9A%E1%83%98%E1%83%99%E1%83%90%E1%83%AA%E1%83%98%E1%83%94%E1%83%91%E1%83%98/%E1%83%90%E1%83%9C%E1%83%92%E1%83%90%E1%83%A0%E1%83%98%E1%83%A8%E1%83%94%E1%83%91%E1%83%98/%E1%83%A4%E1%83%98%E1%83%9C%E1%83%90%E1%83%9C%E1%83%A1%E1%83%A3%E1%83%A0%E1%83%98_%E1%83%A1%E1%83%A2%E1%83%90%E1%83%91%E1%83%98%E1%83%9A%E1%83%A3%E1%83%A0%E1%83%9D%E1%83%91%E1%83%98%E1%83%A1_%E1%83%90%E1%83%9C%E1%83%92%E1%83%90%E1%83%A0%E1%83%98%E1%83%A8%E1%83%98/2025/fsr-2025-eng-draft-translation.pdf?v=r634m
Dataset:
No

Evidence base

Official data covering 5,391 permits and 1,459 commissioned objects; Tbilisi’s 49.2% permit share and 31.9% completion share; regional distribution; and the NBG’s assessment that 60% of residential real estate market activity was concentrated in Tbilisi in the first half of 2025.

Limitations

Regional shares refer to object counts, not floor area, value, apartment numbers or use. The estimate of approximately 2,652 Tbilisi permits is derived from the published share. Objects completed in 2026 cannot be matched directly to permits issued in the same period. The NBG’s 60% figure concerns residential real estate market activity and the first half of 2025.

Data type

Official administrative/declared quantitative data; regional shares; BTU-produced and verified calculations; contextual real estate market assessment.

Keywords

half of Georgia construction in Tbilisi, Tbilisi construction 2026, Georgia construction permits, Tbilisi real estate, regional construction Georgia, construction concentration, commissioned buildings, Tbilisi expansion, regional development, housing supply, urban infrastructure

AI relevant tags

Construction, Real Estate, Urban Development, Regional Development, Construction Permits, Housing Supply, Infrastructure, Tbilisi, Georgia Economy

AI tools used

OpenAI GPT – research synthesis, drafting, Georgian-English adaptation and metadata preparation; Python – calculation verification and data processing; web research tools – source verification and updating. Final publication requires editorial review by the BTUAI Research Team.