Georgia's residential real estate market in July 2026 demonstrated a contrasting picture: the capital is developing dynamically, while the Black Sea resort is experiencing a difficult period. According to data from analytical agency Colliers Georgia, sales in Tbilisi increased by almost a quarter, the market volume increased by more than a third, while in Batumi there was a decline in the number of transactions. At the same time, the structure of demand between regions is changing: if Georgian buyers dominate in the capital, then in Batumi foreigners already constitute almost half of all property buyers.
Tbilisi: Rise in Activity and Notable Price Increases
In the Georgian capital in July, 4,486 residential real estate transactions were registered, which is 22.8% higher than in July 2025. The value of completed transactions increased even more significantly — by 36.7%, amounting to $393 million. The main driver of growth remains demand from Georgian citizens, who constitute 88% of buyers. Foreign investors still play a modest role, accounting for only 12% of the total transaction volume.
New construction sales grew most actively — by 29.8% year-on-year. The primary market showed an increase of 30.5%, the secondary market — 28.9%. Notably, the Samgori district experienced a particularly significant jump: this district accounted for approximately 44% of the total increase in transaction numbers, which analysts attribute to the expansion of residential housing supply.
The growth in activity is accompanied by notable price increases. The weighted average price per square meter in new Tbilisi projects increased by 10%. Differentiated analysis shows:
- In the broad center, prices increased by 14.8%
- In the historic and business center — by 13.3%
- In the suburbs — by 10%
In the segment of older housing stock, dynamics are much more modest: the number of transactions increased by only 1.6%, however the average asking price rose by 13.8%, indicating a reorientation of demand toward new housing.
Batumi: Market Decline and Strengthening Foreign Demand
In Batumi, the situation is developing according to a fundamentally different scenario. In July, 1,378 transactions were registered there — 11.8% less than a year earlier. The value volume of the market also declined, falling by 5.2% and amounting to $92 million. At the same time, the structure of demand is undergoing significant changes: if previously the local market was dominated by Georgian citizens, now foreigners already constitute 48% of all buyers.
The steepest decline occurred in the old housing stock segment — minus 22.4%. Sales of new construction also decreased, but less significantly — by 11.1%. The primary new construction market demonstrated the sharpest drop of 32.8%, however Colliers analysts emphasize that this figure is largely distorted by a high comparison base effect: in July 2025, a large number of transactions for several under-construction projects were registered simultaneously in the registry. On the secondary new construction market, by contrast, growth of 19.1% was observed.
Unlike Tbilisi, there was no notable price growth on Batumi's primary market. The weighted average price per square meter in new construction was $1,376, essentially maintaining the previous year's level (the decline was only 0.1%). The formal price reduction on the primary market of 14.4% is also explained by the effect of one expensive project registered in July 2025. If this transaction is excluded from the calculations, the average primary housing price actually increased by approximately 2%. On the secondary new construction market, prices, by contrast, increased by 9.1%.