Apartment Investing in Tbilisi: Why Georgia's Capital Is the Current Real Estate Hotspot

Investors worldwide have been flocking at an increasing rate to real estate in Georgia. Apartment investing in Tbilisi, in particular, has been steadily gaining momentum from year to year. Georgia's capital city has not-so-quietly transformed into one of the most promising real estate markets in the region, thanks to the combination of compelling location (right at the border between Europe and Asia), comparative affordability, investor-friendly policies, and - rather crucially - strong growth potential. 

 

As prices on real estate keep appreciating and the number of transactions increasing, Tbilisi is right in the sweet spot for investors looking to diversify their property portfolios. In the blog below, we’ll break down the major reasons real estate investing in Tbilisi seems to be all the rage right now.

 

Why Tbilisi? Breaking Down the Major Market Drivers

Tbilisi’s current appeal as a destination for investment can be attributed to several key factors. Firstly, the Georgian economy seems remarkably resilient and stable: it seemed that major events that transpired over the last three years should’ve at least slowed it down, instead the GDP has grown at an average yearly rate of about 5% and is projected to grow about 5.5% in 2025, according to the Asian Development Bank. Add the highly favorable business climate that makes it easy for foreign citizens to register a new company in one day - or finish all the bureaucratic procedures around a real estate purchase in less than a week - and you’ve got yourself a market rife with optimal conditions encouraging buyers to just pull the trigger.

 

There’s also a fact that Georgia's visa policy is exceptionally liberal. Citizens from 98 different countries are allowed to enter, work, and study without a visa for up to one calendar year. People who set up their lives during that visa-free period often use real estate investment as means to establish a longer-term presence in the country. While buying real estate won’t grant citizenship, owning a real estate property with over $100,000 in market value can earn an individual a temporary residency permit. And if you make a real estate investment of $300,000 or more and maintain it for five years, you become eligible for permanent residency. Many expats are looking for apartments for sale in Tbilisi not only as means to boost their portfolio, but as means to establish a life here - which, understandably, drives transactions.

 

Additionally, Georgia's tax environment is very favorable to real estate investors, with maximum tax amount not exceeding 1% of the property’s market value, and a relatively low 5% rental tax.

 

Besides, acquiring property is glaringly easy - the entire process can be completed in under a week, requires minimal paperwork and is pretty streamlined, with no complicated bureaucratic red tape to cut through. Foreign investors don’t have any restrictions to battle when purchasing residential property (though they aren’t allowed to purchase agricultural land). This open and easy approach to real estate has greatly helped with the market's internationalization and growth.

 

What Do the Market Trends Say

 

The most successful real estate investors have a knack for finding the sweet moment where the market is about to blow. Well, Tbilisi's real estate market is currently in that exact moment. It has consistently grown at a rather high pace over the last half a decade, with the Residential Property Price Index increasing by an impressive 54.3% since 2020. The data from 2025 shows that prices continue to climb, particularly in central districts. And not only on new construction, but for older apartments in prime locations, as well.

 

That said, as with any other major city, the price range significantly depends on location. In Tbilisi, one of the most expensive districts is Vake (traditionally considered a prestigious residency location and over the last decade transforming into the business center of the city) - the average prices here range from approximately $1,963 to $2,378 per square meter. The most in-demand district seems to be Saburtalo, particularly popular with young professionals and students - with average prices hovering around $1,750 per square meter. 

 

Archi, a leading real estate developer in Tbilisi, offers potential investors multiple options across multiple districts. There are premium projects such as Archi Universe in Saburtalo and Archi Lisi Sunrise near Lisi Lake that boast strategic central location and could gather rather significant ROI in short amount of time - and there are projects like Archi Lilacs in Mukhiani which offers comparatively affordable prices and could make a great first-time investment for a newbie investor seeking a secure and promising entry into the market. 

 

What’s the Potential ROI on Tbilisi Real Estate?

The return on investment potential depends on property location and the owner’s rental strategy. On average, short-term rentals seem to be more lucrative, especially in central districts. The average daily rate around Old Town and Rustaveli Avenue was $38, according to data from 2023. On the other hand, according to the same report the median occupancy rate for short-term rentals was 60%. This, despite tourism in Tbilisi experiencing year-to-year increase, as well as growing interest among digital nomads - non-central locations are not in particularly high demand, especially during the low tourist season.  

 

Long-term rentals typically offer yields of 6-8% for leases of six months or longer. These yields vary by district and apartment size, with some suburban areas potentially offering higher returns due to lower entry costs. For example, if you invest in apartments in one of the in-demand districts like Saburtalo or closer to suburbs, but in a premium residence complex surrounded by greenery (something that has become in somewhat of a short supply in actively developed Tbilisi districts) you can generally count on gross rental yields at the higher end of that range, with strong potential for capital appreciation due to consistent demand and limited supply. Archi’s Lisi Sunrise, about a 15-minute walk away from the famous Lisi Lake is a good example - it’s right in the middle of one of the most ecologically friendly areas near (about 20 minutes by car) the city center, with all the necessary amenities for comfort and leisure, yet still in a relatively calm area.

 

 Suburban areas such as Didi Dighomi or Nadzaladevi tend to have lower purchase prices and are typically rented out for much less, but with smart management strategies can sometimes offer even higher gross rental yields. Archi has multiple residential complexes in development that cater to demands of various demographics and purchase power - any investor can find out more about them by simply checking out the Archi projects located in different districts and choose the one that’s closest to their purchase power and investment strategy. 

 

Tbilisi presents a compelling opportunity for international investors seeking to capitalize on an emerging real estate market with significant growth potential. If you’re seriously interested in buying a piece of real estate in Georgia’s capital, do take a look at Archi’s services - we might be able to help! 

 

After all, we know best of all about this city's strategic location, investor-friendly policies, and the real estate market’s remarkable resilience demonstrated over the past decade. The combination creates a unique value proposition that few European markets can match, and it’s only poised to grow.