Tbilisi Real Estate in 2025: Price Adjustments, Steady Demand, and Emerging Challenges

The real estate market in Tbilisi as of May 2025 offers a detailed reflection of broader economic shifts and a rapidly evolving urban lifestyle. According to Galt & Taggart’s latest sectoral review, the fundamental balance between supply and demand remains intact, yet beneath the surface, clear structural transformations are unfolding.

Subtle Growth Amid a Shifting Landscape

The key change in 2025 is the modest recovery in apartment sales—both in the primary and secondary markets—particularly in April and May. In May alone, 3,325 residential units were sold, surpassing the average of the first four months by:

• 6.4% in the primary market
• 11.8% in the secondary market

However, this growth comes with nuance. While the secondary market saw a 6.5% year-over-year increase in sales, it remains down by 6.4% year-to-date, signaling fragile internal momentum. In the primary market, some delays in property registration are evident, yet there is still an upward trend compared to the previous year.

Slight Price Corrections Across the Board

Interestingly, even with this cautious growth, prices in both segments have slightly declined:

• Primary market: Average price per square meter fell to $1,331, down 0.1% from April.
• Secondary market (newer buildings): Price dropped to $1,253 per m², a 0.2% decrease.

These minor corrections reflect growing competition, improved internal market flexibility, and more realistic buyer expectations. Developers are responding by adapting pricing strategies and offering more flexible purchasing terms.

Cautious Supply Dynamics

On the supply side, a notable adjustment is taking place:

• New construction permits (May): Total approved residential space fell by 18.3% year-over-year
• Total permits in the first five months: Down only 1.1% compared to 2024

This suggests that developers are being cautious, launching new projects in measured alignment with real demand, rather than speculative overbuilding.

The Rental Market Cools Slightly

Rental prices are also stabilizing:

• In May, the average rent for a mid-size apartment dropped by 2%, reaching $9.3 per m²
• This decline likely reflects seasonal effects and the stabilization of migration flows into Tbilisi, both international and domestic

A Market of Measured Optimism

As summer approaches, Tbilisi’s real estate market shows less frenzy but more cautious optimism. Price corrections have stimulated renewed interest among buyers, yet the overall trend remains calmly balanced.

We are now seeing:

• A new equilibrium between developers and buyers
• Greater adaptation to local market behavior
• An increase in foreign investor activity

Together, these forces are reshaping not only the market but also the broader economic and demographic transformation of the city. In such a sensitive and fast-evolving environment, each trend must be reassessed in near real time—making Tbilisi a living laboratory of urban and economic change in the region.