Georgia Real Estate Market in 2025: Growth Analysis, Investments, and Profitability — Expert

Over the past 8 years, the Georgian real estate market has transformed beyond recognition. The volume of the residential real estate market in Tbilisi has more than doubled to $243 million, while Batumi has shown similar dynamics. Elias Marino, founder of the real estate agency Geo Estate, talks about the reasons for such growth, the record investment of $5.5 billion from Emaar Group, and the prospects for investors.

It is now possible & necessary to earn money in the Georgian real estate market.

— How has the Georgian residential real estate market changed over the past 8 years?

— The Georgian real estate market is growing rapidly, and according to Colliers International, by February 2025, the residential real estate market size in Tbilisi reached $243,230,009, which is $126,704,094 more than in February 2018, when its size was only $116,525,915. The residential real estate market size in Batumi in February 2025 reached $63,640,485, which is $33,443,480 more than in February 2018, when its size was only $30,197,005.

— How do you assess the situation in the Georgian real estate market right now? What are the latest news/changes on the market? Are there any trends that you have not seen on the market before?

— The Georgian real estate market inspires optimism. For example, at the end of January 2025, a memorandum was signed in Abu Dhabi between the Georgian government and one of the largest developers in the Emirates, Emaar Group, on investing more than $5.5 billion in the Georgian real estate sector. Information has already appeared that the Gonio Marina complex will be built on a 260-hectare territory on the Black Sea coast in Batumi. The project will include world-class marinas, branded residences, luxury hotels, and shopping centers.

— How has the demand for real estate in the country changed recently, say, over the last year or year and a half? What are the current volumes of property sales?

— This is the most significant investment in the history of the country, and the fact that investments will be made in the Georgian real estate sector is a clear signal to retail investors indicating the attractiveness of investments and high prospects. Thus, by February 2025, the number of transactions in the residential real estate segment of Tbilisi amounted to 3205, which is 429 transactions more than in February 2021. As for Batumi, the number of transactions in the residential real estate segment by February 2025 amounted to 1177, which is 444 transactions more than in February 2021.

— What are the significant differences between the property markets in Tbilisi and Batumi?

— Among foreign investors, the most popular real estate is in Tbilisi and Batumi. The main difference between them is that Batumi is a resort city with pronounced seasonality, while Tbilisi, due to its status as the capital, is less susceptible to such factors. However, recently, more and more foreign investors have been attracted by wellness centers, premium hotels with sanatorium functions & rehabilitation centers in Batumi, which are designed for year-round occupancy.

— What is the current cost per square meter of an apartment in Tbilisi and Batumi?

— As of February 2025, the average price of residential real estate in Tbilisi was $1,157/m², which is $90/m² more than in February 2024. As for Batumi, in February 2025, the average price of residential real estate was $1,179/m², which is $165/m² more than in February 2024.

— What type of real estate is currently in peak demand in Georgia?

— If we stick to the following classification — premium, comfort, middle, and economy classes — then in Batumi in 2024, the premium real estate segment saw growth of 11.7%, and in the comfort segment — 29.7%. While in Tbilisi in 2024, the premium real estate segment saw a growth of 29.9%, and the comfort segment saw 29.3%. From an investment point of view, these are the most promising options.

— Is the secondary or primary market leading in demand? What is the reason for this, in your opinion?

— In February 2025, the number of transactions in new projects in Tbilisi decreased by 2%. It should be noted that some transactions in new projects on the primary market are registered by developers later, which can potentially lead to data distortion and not provide an accurate picture of the primary market. In the secondary market, the downward trend continued — the indicator for old apartments decreased by 27.2% compared to February 2024. This demonstrates investors’ interest in new buildings.

An example of a new elite residential complex in Tbilisi:

— What size apartments (how many rooms) are currently the most popular among potential buyers?

— As practice shows, large apartments with several bedrooms are the most popular. Usually, there are the fewest such layouts in projects, and they have the greatest liquidity. This is primarily since such apartments are popular with people with families, who willingly buy them both in Tbilisi and Batumi.

— What is the hottest period of the year in the Georgian property market?

— Historically, the most significant number of transactions in the Georgian residential real estate market occurs at the end of the year.

— What trends in the resort real estate segment were observed last year? What is expected this year?

— At the moment, construction is in full swing on the Black Sea coast in Gonio the first All-inclusive resort in Georgia under the Wyndham Grand 5*, consisting of 4 hotel complexes and having an infrastructure of more than 27,000 m² with more than 100 infrastructure facilities: SPA, restaurants, aqua parks, etc. The complex is scheduled to be commissioned at the end of 2025.

Also in 2025, the start of sales was announced on the first artificial island in Batumi, which consists of two peninsulas and one island. Completion of the project is scheduled for 2040. The project has an area of ​​84 hectares, on which hotels, villas, skyscrapers, recreational areas, concert halls, shopping centers, office spaces, educational institutions, a medical center, and much more will be located.

— Citizens of which countries are most often interested in buying a property in Georgia? What specific types of real estate are they considering for themselves and in which cities?

— According to Galt & Taggart, foreign investors are increasingly choosing Georgian real estate as an investment: In 2024, the share of foreign capital in Batumi was 90%. The distribution of foreign investments by country is as follows: 

• Russia — 27%, 
• Israel — 11%, 
• Poland — 7%, 
• Turkey — 5%, 
• Ukraine — 4%, 
• Germany — 3.8%, 
• The USA — 3%,
• Other countries — 39.2%.

In Tbilisi, the overall picture is different: There, demand is driven by Georgian citizens, who account for 85% of total sales; they are followed by Russian and Israeli citizens, who account for 4% of total sales each, and the rest are from other countries.

— How much can you earn on Georgian real estate, and what are the ways to do this?

— There are two main ways to make money on real estate:

1. Growth of the project’s market capitalization (for example, purchase at the foundation pit with subsequent resale). Thus, depending on the project, at the construction stage price growth can reach 30% ROI per year and even more.
2. Rental income (long-term or daily). Regarding rental income, the highest rates of return are from international management companies such as Ambridge Hospitality. They manage branded, international hotel chains and can sometimes even offer guaranteed returns to investors from 5% to 9% ROI per year. This is possible due to working with package tourists and travel companies. That is why investing in branded real estate is so financially attractive.

— What do you think awaits the Georgian residential real estate market in general in the next few years?

— It is possible & necessary to earn money in the Georgian real estate market now. Investments in Georgian real estate by large foreign capital and the implementation of large-scale projects of regional significance are the best confirmation of this.