The Georgian real estate market remains one of the most accessible for foreign buyers in the region, however the situation has changed dramatically over the past few years. If Georgia used to be positioned as a market for cheap apartments with promises of high returns, by 2026 prices have risen significantly, supply in resort areas has increased, and promises of 12-15% returns increasingly fail to match reality. At the same time, acquiring real estate remains a simple process: foreigners can purchase apartments, houses and commercial premises without special government permission, rights are registered quickly, and registration costs remain low compared to most European countries.
Tbilisi: Moderate Growth After the Boom
In the second quarter of 2026, the price index for new residential real estate in Tbilisi grew by 0.9% quarterly and 4.9% year-on-year. Compared to the average level of 2020, housing prices have risen by an impressive 63.8%. The growth rate has slowed noticeably compared to 2022-2023 — the market has entered a stabilization phase, which reduces the risk of buying at peak prices, but at the same time means that one can no longer expect automatic price appreciation of 10-20% annually.
By January 2026, the weighted average price on the primary market had reached approximately $1,385 per m², while on the secondary market, relatively new properties were valued at $1,296 per m², and older residential stock at $1,228 per m². The average rental rate for new apartments of 50-60 m² was approximately $10.2 per m² per month, providing a gross yield of around 8.9%.
Prices in new developments in Tbilisi vary significantly by district. In the first quarter of 2026, median prices were 6,814 GEL per m² in Mtsminda, 5,958 GEL in Vake, 4,456 GEL in Krtsanisi, 4,333 GEL in Saburtalo and 3,651 GEL in Samgori. It is important to remember that these are asking prices, not prices of closed transactions.
Batumi: Rapid Growth with Signs of Market Saturation
Batumi is developing differently — here growth rates remain high, but there are signs of market oversupply. In 2025, the city sold 17,478 apartments — 15% more than a year earlier, while the total market volume reached approximately $1.3 billion and grew by 23.8%. The average price of new residential property rose to $1,865 per m², and on the secondary market to $1,450 per m².
However, rental yields in Batumi have declined: while a year ago it was 8.8%, by 2025 it had fallen to 7.4%, as purchase prices are rising faster than rental rates. Foreigners accounted for approximately 52% of sales in developers' project systems, but the number of unsold apartments continues to grow and has reached approximately 12,400 units — an important signal indicating oversupply in several districts despite sustained demand.
Why Investors Choose Georgia
The main advantage is simplicity and low registration costs. Property transfer is registered by the National Agency of Public Registry in just four business days for 150 GEL, in one day for 270 GEL, or on the same day for 350 GEL. Georgia does not charge a universal 1% tax on property transfer for ordinary apartment purchases — the buyer pays only the registration fee, legal services, translation and possible broker commission.
A significant incentive for foreigners is the opportunity to obtain a residence permit. A short-term residence permit is granted to property owners if the confirmed market value of their property exceeds $150,000 (the valuation must be confirmed by a certified appraiser); the right also extends to the applicant's spouse and children. An investment residence permit is linked to a real estate investment of over $300,000 — provided the property is retained for the required period.
Tourism continues to support rental demand: in the first half of 2026, Georgia received over 3 million international visits, of which over 2.27 million were tourist visits. The country's economy is growing at approximately 5.4-6% in 2026. At the same time, the market is affected by political uncertainty, currency fluctuations and high volumes of new construction, which should be considered when assessing investment risks.