If you're someone who keeps a keen eye on international property markets, Georgia has likely appeared on your radar. The country's real estate sector has been steadily growing over the last decade, picking up at a particularly strong pace since the pandemic. It’s a market that hasn’t just bounced back; it’s in a full-blown expansion.

To put some numbers to work, the national residential property price index shot up by a remarkable 11.53% in the first quarter of 2025 compared to the year before1. And this surge isn’t sudden; it’s the continuation of a strong upward trend that we witnessed throughout all of 2023 and 2024. This growth built on an already explosive recovery, with the total market volume swelling by an incredible 44.5% in 2021 and another 38.1% in 20221. And yet, property prices in Georgia, Europe, are still considered more tame than most other major European cities. For those interested in buying real estate in Tbilisi, these figures paint a very positive picture.

Tbilisi Real Estate Market Overview: Dynamics, KPIs, and Yields

You need not look further than the capital, Tbilisi, to see that with the frantic, migration-fueled buying frenzy of 2022 settling down doesn’t mean the potential for growth has evaporated. If anything, it’s made way for a more stable and mature landscape for real estate in Georgia. The headline growth is still positive: people are still buying, what has shifted is how they’re buying property.

If we look at currently available transaction numbers, we can see that though the market hit a record high in 2022, asking prices have held strong and seen steady growth. We take it as another proof that while the market has cooled, it hasn’t entered a slump but has stabilized at a favorable position, with ample space to grow.

To illustrate: in May 2024, the average asking price for a property in Tbilisi was $1,192 per square meter, a solid 2% increase from the previous year2. This tells us something important about buyer intent: the urgency might have lessened, but the demand for high-quality properties in good locations is still there. Not only does this prevent prices from dropping, but certain high-value (or, at least, perceived as such) projects saw prices jump by a double-digit percentage.

Digging deeper, we can also see a clear "flight to quality" emerge. Buyers today are quite clear in their preferences: most want modern, newly built apartments and increasingly rarely spare attention to older ones. In May 2024, new apartment sales increased by 12%, while old apartment sales dropped by 11%. Modern amenities, energy efficiency, and contemporary layouts are becoming ever stronger drivers. Those considering investing in Tbilisi real estate should keep this trend in mind, as it’s all but guaranteed to remain a crucial piece of the puzzle.

So, what about returns? The phenomenal rental yields of 2022-2023, largely driven by a wave of migration, also seem to be stabilizing at more normal levels. In September 2023, the average rental yield in Tbilisi was an excellent 11.2%3, which settled to a still-healthy 10.6% by May 20242. In Tbilisi’s specific case, this kind of yield compression signifies a stabilizing, maturing market: property prices and rental incomes are now better balanced than in 2022, when a strong migration wave hit the city, forcing rental prices to hit the skies. It’s simply normalization.

Even with this normalization, the returns remain highly attractive. If you’re willing to be more hands-on, the short-term rental market is still quite a lucrative path. With nearly 6,900 active Airbnb-style listings in the city, a typical host can bring in between $8,000 and $12,000 a year. As of right now, Tbilisi property market analysis 2025 shows that while earning double-digit returns on any property is no longer so easy, a smart, strategic approach can still earn real estate owners a pretty significant ROI.

Tbilisi Residential Market - Key Performance Indicators (May 2024 & Q1 2025)

Metric	Value	YoY Change / Note
Average Asking Sale Price	$1,192/sqm (May 2024)	+2.0%
Average Rental Price	$12.0/sqm (May 2024)	-6.0%
Average Rental Yield	10.6% (May 2024)	-0.8 percentage points
Total Transactions	3,142 units (May 2024)	-7.0%
New Apartment Sales	N/A	+12.0% (May 2024)
Old Apartment Sales	N/A	-11.0% (May 2024)
Flat Price Growth (Vake, Q1 2025)	GEL 5,880/sqm ($2,146/sqm)	+20.8%
Flat Price Growth (Mtatsminda, Q1 2025)	GEL 6,769/sqm ($2,471/sqm)	+21.4%

Tbilisi District Analysis: Where to Buy (and Where to Be Cautious)

As the Tbilisi market is expected to continue maturing, simply buying the first property that catches your eye and expecting great returns is no longer a winning strategy. You want to actually get the most out of your investment? You need to juggle multiple characteristics - from the amenities listed above (you cannot expect to lucratively rent out the apartment you, yourself, would never live in) to where, exactly, the property is located.

If there’s anything the last couple of years have made abundantly clear, it’s that specific districts gain and lose luster along with the market transforming. And as things stand now, investments that were gold back in 2021-22 are in the process of being supplanted. Catching a nice piece of real estate during this process may help maximize returns in the future.

For investors focused on stable, long-term income and growth, a few developing districts stand out from the crowd.

Saburtalo is currently a clear leader in demand. It’s a massive, self-sufficient district. Universities, medical centers, office spaces - everything is nearby, and what isn’t particularly near is well-connected through public transportation. It’s close to the city center but not overrun by tourists. Pull all these factors together, and you get a deep and consistent rental demand from multiple diverse sources: Saburtalo is a top district choice among students, young professionals, and families. With average flat prices in Q1 2025 at approximately $1,568 per square meter1, Saburtalo offers a combination of a reasonable entry cost, high liquidity, and reliably strong rental demand. It’s also a hub for sales and new construction, meaning you have both a liquid market and a steady supply of modern homes to choose from. A perfect example of the major benefits of real estate development in Georgia that taps into not only existing, but probable demand can be seen in projects like Archi Lisi Sunrise and Archi Universe, new premium-quality complexes that up the ante in the district. Located near the popular Lisi Lake, the Lisi Sunrise offers a fantastic blend of city access and green, recreational living, while Archi Universe offers all the premium amenities that modern renters and buyers are looking for, along with excellent connectivity to major points in the city.

Isani, a district east of the center, is currently the city’s most exciting growth story. With excellent infrastructure, including its own metro station, and plenty of land zoned for high-rise development, the district is on a clear path to gentrification. As Tbilisi real estate prices go, Isani is still significantly lower than in the central districts, with an average of $1,394 per square meter1, and certain listings still going as low as $500-7004. While historically the most in-demand part of the district used to be Avlabari, modern projects like Archi Vazisubani and Archi Isani 2 have made sure to expand offerings of high-quality apartments, equipped with modern living amenities, in an area that used to feel a keen lack of such.

Yet when it comes to affordability and transaction volume, Didi Dighomi currently remains the undisputed leader among Tbilisi districts. It’s currently the largest segment of the local market. With the constant stream of new construction, the price growth might be slower here, but it also guarantees incredible liquidity. Being an investor in Didi Dighomi means you’ll gain access to the city’s largest pool of potential buyers and renters.

If you want to learn about the subject more in-depth or have trouble deciding which district to invest in, read our blog about top 5 districts to buy an apartment in Tbilisi.

On the flip side, with the market cooling down after 2022-2023, some of the most prestigious and well-known districts might not be as solid a bet for investors seeking strong returns right now.

Vake and Vera are among the city's most upscale and prestigious neighborhoods, and there’s a premium price tag to match. But these high prices have created somewhat of a yield compression. Rental yields here are estimated to be around 5-6%, a little below the citywide average. As for Old Tbilisi, which includes the famous Mtatsminda and Sololaki districts and is the prime concentration of tourism is, as of right now, oversaturated with short-term rental properties6.

If you're still interested in buying real estate near Old Town, then Ortachala is the district to take into consideration. It’s close to the city’s historic center, yet not necessarily considered a central location, with prices lower than Mtatsminda or Chughureti, yet it’s well-connected to the city’s main transportation arteries. It is also one of the greenest districts among the more well-developed, tightly-populated areas, which the developers have started to take full advantage of. Archi Horizon is a great example of one such premium-class complex with modern amenities where location was deliberately chosen to give residents access to green spaces.

Nadzaladevi, on the other hand, is a district that is currently mostly flying under the radar. While not (yet) known as a premium living area, it does greatly benefit from excellent connectivity (with many bus routes and two metro stations - M/S Nadzaladevi and M/S Gotsiridze - running through the district. As things stand now, Nadzaladevi is a great area to keep an eye on, presenting investors with an opportunity to invest early and rip higher rewards down the line.

Navigating the Tbilisi Real Estate Market and Investment: A Few Final Words

Here’s the big takeaway: the Tbilisi real estate market is healthy, mature, and well-positioned for investor success—if, and only if, that investor chooses a careful strategic approach. The time for an explosive, anything-goes approach is over, and we’ve entered a phase where smart, strategic decisions are what lead to success. The landscape is still full of opportunity, but you have to know where to look.

If you’re a yield-focused investor: Your best bet is a modern, one- or two-bedroom apartment in a district with a good balance of cost-and-demand (Isani or Saburtalo, ideally close to a metro station). This approach plugs you directly into the most stable and deepest part of the rental market: local professionals, students, and families.
If you’re a capital appreciation-focused investor: Look for a "white frame" property from a well-funded, reputable developer in Isani or Didi Dighomi. The first district is in the middle of a clear transformation, while the second has the steadiest stream of demand. Either choice allows you to get in at a lower cost and ride the wave of value appreciation.

If you’re an investor seeking residency along the way: If you want to secure a residence permit (along with earning a good ROI), remember you need to meet the $100,000 investment threshold. The safest move is to buy a finished, turn-key apartment in Saburtalo. The district's high sales volume gives you an easy exit strategy if you need one, and its strong rental demand provides a steady income to cover your costs while you maintain your residency status.

Sources:

Georgia's Residential Property Market Analysis 2025 https://www.globalpropertyguide.com/asia/georgia/price-history
tbccapital.ge https://tbccapital.ge/static/file/202406285348-tbilisi-residential-market-monthly-watch-may-2024-eng.pdf
Tbilisi Residential Market - TBC Capital https://tbccapital.ge/static/file/202310185233-tbilisi-residential-market-monthly-watch-september-2023-eng.pdf
New builds in the district Isani, Tbilisi - GEOLN.COM https://geoln.com/georgia/tbilisi-isani-district
Analysis of Tbilisi's Real Estate Boom - CiteSeerX https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=06684894de34396bfd903d1a3a0975bfaf93628b
Tbilisi Airbnb Market Statistics & Data, Georgia https://airbtics.com/annual-airbnb-revenue-in-tbilisi-georgia

Meet Anka Jorjikia - Marketing Manager at Archi