Tbilisi’s Office Market in 2024: Growth, Transformation, and Regional Differences

In 2024, significant changes and trends were observed in Tbilisi’s office market, reflected both in rental prices and occupancy rates. According to the latest research by TBC Capital, the average rent in Tbilisi’s business centers increased by 6% year-on-year, reaching $23.4 per square meter. This growth indicates that demand in the market remains solid, especially for high-end office spaces characterized by modern infrastructure, standards, and comfort.

A particularly notable difference emerges when analyzing the market by business center classifications. In Class A business centers — which meet the highest standards and are located in prime areas attractive to modern companies — the average rent is $28 per square meter. In comparison, the figure stands at $15.1 for Class B centers, and just $13 for Class C office spaces, which are typically located on the ground floors of residential buildings.

Positive dynamics are also evident in terms of occupancy rates. In 2024, the overall vacancy rate decreased to 12%, 2 percentage points lower than the previous year. This decline is especially visible in Class A business centers, where the vacancy rate has dropped to 10%, demonstrating that demand for high-quality office spaces remains strong and that companies are willing to pay higher rents for superior conditions.

Expectations for changes in Tbilisi’s urban plan are also becoming more pronounced: in 2024, permits were issued for the construction of 18 new business centers, signaling the emergence of new, modern office spaces in the city over the next 3–4 years. New developments are primarily concentrated in the Vake and Saburtalo districts, highlighting the growing strategic importance of these areas for the office market.

Regional differences are also noteworthy. Batumi’s office market is already approaching Tbilisi’s average figures, with rents at $16.2 per square meter. However, in other cities — such as Kutaisi, Zugdidi, and Telavi — the office space market is still in a formative stage. In these cities, most offices are still located on the ground floors of residential buildings, presenting both infrastructural and strategic challenges.

Looking ahead, office space supply in the regions is expected to be integrated mainly into multifunctional buildings and shopping centers. This indicates that, despite challenges, the regions are also beginning to modernize their office infrastructure in preparation for future economic activity growth.

The current state of Tbilisi’s office market clearly demonstrates that the country is entering a new phase in business infrastructure development. The growing interest from investors and businesses in Class A spaces, the activity in regional centers, and the ongoing infrastructure transformations reflect the dynamic nature of Georgia’s economic environment and the evolving economic roles of its cities. If properly managed, these changes will not only enhance the country’s business potential but also promote economic diversification and more balanced regional development.