Global Instability Redirects Investment Capital to Georgia
Global instability is reshaping investment flows
Escalating conflicts in the Middle East and rising geopolitical tensions across global markets are triggering a noticeable redistribution of international investment flows. Investors are increasingly searching for countries located far from conflict zones and capable of offering economic stability.
Against the backdrop of falling European stock markets and disruptions to air travel in the Middle East — where flight cancellations, declining bookings and weaker tourism flows are being reported — part of global capital is beginning to shift toward more stable regions.
Georgia is emerging as one of these destinations. The country is gradually becoming a regional investment hub thanks to its combination of economic growth, a favorable business environment and a strong security profile.
Georgian authorities also emphasize the importance of maintaining stability and a neutral stance amid global conflicts. Foreign Minister Maka Bochorishvili stated that ensuring security and preserving peace remain the country’s top priorities. According to her, Georgia does not seek to play a decisive role in global politics but aims to carefully align its national interests with ongoing international developments.
“The main issue is security. For any country, this must be the starting point: that there is no war and that peace is preserved. Peace creates opportunities for many things. When it is absent, everything else becomes secondary,” Bochorishvili said.
Officials have also stressed Georgia’s commitment to regional stability. Prime Minister Irakli Kobakhidze said the country remains ready to support peace and stability in the South Caucasus.
“Georgia confirms its readiness to continue supporting the establishment of peace and stability in the region,” Kobakhidze said.
Georgia’s economy is growing faster than regional peers
The surge in investor interest is supported by strong macroeconomic indicators. According to preliminary data from Georgia’s national statistics office Geostat, the country’s economy expanded by 7.9% year-on-year in January 2026.
International financial institutions are also improving their forecasts. The European Bank for Reconstruction and Development has raised its projection for Georgia’s economic growth in 2026 to 5.5%.
A similar assessment comes from the World Bank. According to its forecast, Georgia’s economy will again grow faster than other countries in the South Caucasus in 2026 — around 5.5%, compared with roughly 4.9% in Armenia and about 1.8% in Azerbaijan. This dynamic makes Georgia one of the fastest-growing economies in the region.
Read more: Growth of Georgia’s GDP in 2026 to again outpace South Caucasus countries: World Bank forecast
Strong safety profile boosts investor confidence
Another factor increasing investor interest is the country’s high level of security. According to the Global Terrorism Index, Georgia ranks among the safest countries in the world, with extremely low terrorism risks.
Read more: Georgia recognized as one of the safest countries in the world according to the GTI terrorism index
In an environment of global instability, safety is becoming one of the key factors influencing investment decisions.
Tourism remains one of the key drivers of growth
The tourism sector continues to show strong growth. Tourism revenues in January 2026 increased by 13.4% compared with the same period a year earlier, reaching approximately $325 million.
Analysts expect tourism revenues to reach around $5 billion in 2026.
Tourism growth is also reflected in transportation statistics. Passenger traffic at Georgian airports approached a record 8 million travelers in 2025, while Tbilisi and Batumi airports recorded historic passenger numbers.
Foreign visitors are strengthening domestic demand
Foreign visitors are having an increasingly visible impact on Georgia’s economy. According to banking sector analysts, spending by international travelers is growing rapidly and is particularly concentrated in hotels, restaurants and retail stores.
This spending pattern is boosting the service sector and supporting the development of small and medium-sized businesses.
Real estate market reacts to rising investment inflows
The growth of tourism and foreign investment is already visible in the real estate market. In Batumi, one of Georgia’s main resort cities, residential property prices increased by 17% in 2025, according to an analytical report by TBC Capital.
At the same time, the structure of investments is gradually changing. In addition to residential real estate, more capital is being directed into hotel developments.
The developer of the Wyndham Grand Batumi Gonio hotel complex — European Village LLC — offers guaranteed income from the moment payment is received, already at the construction stage. These conditions are included in the investment contract.
Read more about how guaranteed income works here.
Favorable business environment attracts international investors
Georgia also regularly ranks among countries with the most favorable business environments. The World Bank recognizes it as one of the best places in the region for doing business.
Another factor increasing the country’s attractiveness is mobility. Georgia’s passport has been recognized as the strongest among countries in the region.
Property prices may continue to rise
The combination of strong economic growth, expanding tourism and rising foreign investment creates conditions for further growth in Georgia’s real estate market.
Demand is particularly strong in Tbilisi and Batumi, where new residential complexes, apartment hotels and hospitality projects are actively being developed.
Real estate transaction data also confirm the strengthening demand in Georgia’s housing market. According to Colliers Georgia, 2,923 apartments were sold in Tbilisi in January 2026, representing a 1.2% increase compared with the same period a year earlier. Batumi recorded much stronger growth, with 1,293 apartments sold, up 23.5% year-on-year. The monetary volume of the market also expanded, reaching $232 million in Tbilisi (+11.7%) and $77 million in Batumi (+36.3%). These figures indicate sustained demand for residential property, particularly in resort cities where investment activity is supported by tourism growth and foreign buyers.
As experts at International Investment note, global geopolitical instability is triggering a redistribution of investment flows, and Georgia is becoming one of the main beneficiaries of this process. High levels of security, strong economic growth, expanding tourism and a favorable business climate are strengthening the country’s investment appeal. If global instability continues, foreign capital inflows into Georgia may keep rising, supporting further development of both the economy and the real estate market.