Tbilisi's residential real estate market is experiencing notable shifts in supply and demand dynamics. During the first five months of 2026, the volume of issued building permits declined by 34.4% compared to the same period in 2025, while their number decreased by 18%. In May of the current year, permits were issued for 23 residential projects with a total residential area of 165,484 square meters. According to Galt & Taggart data, this decline results from a policy aimed at preventing oversupply in the market.
The downward trend in permits began in October 2025 and has persisted for eight months, during a period when excess supply posed risks to market stability. The investment bank views this shift in policy as positive, as it contributes to restoring the balance between supply and demand. The acceleration of price growth rates in 2026 confirms this positive trend: while prices in the first nine months of 2025 rose on average by 0.2% per month, the rate accelerated to 0.6% per month following the reduction in permit issuance.
Positive trends are also reflected in sales indicators. In May 2026, residential apartment sales in Tbilisi reached 3,748 units, 11% higher than May 2025 figures, when 3,374 apartments were sold. The weighted average price per square meter in May 2026 reached $1,412, an increase of 6% compared to the same period last year, when it was $1,331. A Galt & Taggart specialist notes that price growth in Tbilisi's residential real estate market remains stable and maintains relatively high growth rates, indicating a gradual restoration of the balance between supply and demand.