How Airbnb Is Reshaping Tbilisi’s Rental Market — and Why Long-Term Rentals Are Disappearing

In recent years, the sharp increase in Tbilisi’s rental prices has raised concerns, but one key factor remains underexamined: the growing share of apartments listed on Airbnb and the platform’s impact on the long-term housing market. Data shows that short-term rentals are directly shrinking the supply of homes available for residents — especially those seeking affordable, long-term options.

According to 2025 data from Airbtics, there are around 6,777 active Airbnb listings in Tbilisi, with an average occupancy of 219 days per year and a daily rate of $39. This translates to an average annual income of roughly $8,000 per unit, which is nearly double the typical revenue from a long-term lease (source: airbtics.com).

By contrast, long-term rental prices in Tbilisi fell by 11% in March 2025, with the average rent at around $10.6 per square meter. The average annual rental yield also declined to around 9%, indicating that traditional rental models are becoming less attractive from a return-on-investment perspective (source: globalpropertyguide.com).

Yet, this drop in long-term rent doesn’t tell the full story. In high-demand districts like Vake, Mtatsminda, and Marjanishvili, more property owners are switching to short-term models, reducing the number of long-term listings. As a result, students, young families, and low-income residents are being pushed toward the outskirts or forced to accept higher rents.

Compounding the issue is the lack of regulation. In Georgia, listing a property on Airbnb does not require a license, registration, or integration into a formal tax system. Authorities do not monitor activity, and many hosts operate without fulfilling any tax obligations. This creates an uneven playing field, where licensed hotels and guesthouses face strict oversight while short-term landlords operate freely.

Airbnb isn’t solely to blame for housing pressure in Tbilisi, but it is a visible driver. When the same apartment earns nearly double from tourists than it would from a local tenant, the incentive to prioritize short-term gains becomes irresistible. Unless housing policy evolves to reflect this reality, more and more homes in Tbilisi may become temporary stays — while long-term residents are left searching for permanence in an increasingly transient market.