Real Estate Market in Georgia โ What Could Strengthen Demand and Investment?
In August 2025, apartment sales in Tbilisi declined following record-high activity in July. However, the data did not indicate that the market had come to a standstill; the picture was more nuanced.
A total of 2,858 apartment transactions were registered in Tbilisi in August. Secondary-market sales decreased by only 0.3% year-on-year, while registered primary-market sales fell by 17.8%. During the first eight months of 2025, Tbilisi recorded 25,636 transactions, with the residential market reaching approximately US$2 billion in value.
Supply also remained active. In August alone, construction permits were issued for 22 residential projects representing 145,928 mยฒ of living area, an increase of 6.9% year-on-year.
The more relevant question, therefore, is:
What economic and financial mechanisms could strengthen housing affordability, demand and investment activity in Georgia?
๐ฆ 1. Access to Finance
Access to finance is an important factor influencing real estate demand.
During the summer of 2025, the National Bank of Georgia maintained its monetary policy rate at 8%, while continuing a cautious approach in light of inflation risks.
Possible instruments for the real estate market include targeted mortgage programs, co-financing mechanisms, loan guarantees for specific groups, and long-term financing products.
Such measures also involve risks. Excessive stimulus may contribute to higher property prices or create additional fiscal and financial risks. Any support mechanism therefore requires careful targeting and evaluation.
๐ 2. Supporting First-Time Homebuyers
Different countries use a variety of mechanisms to improve housing affordability, including down-payment assistance, partial interest-rate support, and targeted programs for specific demographic or social groups.
Similar approaches could be evaluated in the Georgian context.
The key objective would be to improve genuine affordability without creating an additional source of property-price inflation.
๐๏ธ 3. Stability of the Construction and Development Sector
Construction is closely connected to employment, finance, building-material production, services and many other sectors of the economy.
The objective should therefore not simply be more construction, but economically justified and sustainable development.
Potential areas include infrastructure investment, predictable regulation, efficient permitting processes and cooperation with the private sector.
At the same time, excessive supply can itself create market risks. Galt & Taggart's review of the full 2025 market also highlighted oversupply as a risk to monitor.
๐ 4. Financial Accessibility for Georgian Emigrants and International Buyers
Simplifying property-purchase processes for Georgian citizens living abroad could provide an additional source of demand.
Potential approaches include remote banking services, transparent income-assessment procedures, specialized mortgage products and cooperation with international financial institutions.
Responsible lending and proper assessment of borrowers' ability to repay would remain essential.
๐ 5. Businesses, Startups and Commercial Real Estate
Real estate is not limited to residential apartments.
Economic expansion generates demand for offices, industrial facilities, warehouses, retail space, hotels, land and other commercial assets.
Access to business finance, investment capital and the development of new enterprises can therefore also influence demand for commercial real estate.
๐ฑ 6. Regional and Investment Projects
Georgia's real estate potential extends beyond Tbilisi.
The country's regions offer opportunities for agricultural investment, tourism, wine production, logistics, industrial projects and other forms of development.
Infrastructure, roads, utilities and a predictable investment environment can have a significant influence on the value and viability of these assets.
๐ฏ Conclusion
A strong real estate market cannot depend solely on cheap credit.
It also requires household purchasing power, responsible banking, balanced supply, economic growth, business development and a supportive investment environment.
Government, financial institutions and the private sector each have different roles within this system.
The central challenge is to create an environment in which market-support measures do not generate artificial demand or excessive price growth, but instead strengthen real economic activity, affordability and long-term investment.
MBG Group โ real estate and investment asset market analysis, professional property presentation and investment opportunities in Georgia.
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Author: Ia Makharadze โ Founder and Director of MBG Group.
Real Estate and Investment Property Expert in Georgia.
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