Tbilisi Home Sales Rose More Than 20% in July

Tbilisi’s residential property market accelerated in July 2026, with major market trackers recording roughly 4,400–4,500 apartment transactions and monthly sales value approaching $400 million. Transaction value is growing much faster than average prices, showing that higher sales volumes account for a significant part of the expansion. New housing supply also remains substantial, while rents are rising slowly and borrowing costs remain high.

Tbilisi apartment sales increased by 22%

SOVA, citing TBC Capital, reported 4,409 apartment sales in Tbilisi in July, 22% more than a year earlier. Their combined value reached $395 million, up 24%. During January–July, 26,772 properties were sold, an annual increase of 20%, while market turnover reached $2.37 billion, 24% higher than in the comparable period of 2025. The average sale price for the seven-month period was $1,348 per square meter, up just 4%. Residential floor area covered by issued building permits was close to 711,000 square meters, 1% higher year on year.

The widely quoted 24% increase therefore refers to the value of completed sales rather than a 24% rise in apartment prices. Transaction numbers increased much faster than the average price per square meter.

Primary and secondary markets strengthened together

Galt & Taggart, using National Agency of Public Registry data, recorded 4,475 apartment transactions in July. Secondary-market sales increased 18.8% year on year to 2,294, the highest monthly level since 2022. Registered primary-market sales rose 24.4% to 2,181. The research house notes that new-build statistics are affected by delays between an actual developer sale and official registration. During January–July, 27,274 transactions were registered in Tbilisi, with a combined value of about $2.5 billion, up 27.3%.

Supply remains substantial. Permits issued in July covered 182,789 square meters of residential space across 17 projects, a 50.3% increase from a year earlier. Over the first seven months, cumulative permitted residential area almost matched the 2025 level and was down by only 0.3%.

Prices continued to increase at a much slower pace than market turnover. The average primary-market price rose 0.7% month on month to $1,426 per square meter. In newer buildings on the secondary market, defined as properties built under permits issued from 2013 onward, the average price increased 2% to $1,372.

Different trackers show a similar sales picture

Colliers Georgia’s Recov platform recorded 4,486 residential apartment transactions in July, 22.8% more than a year earlier. It estimated market value at $393 million, an increase of 36.7%. Transactions in new projects rose 29.8%, including growth of 30.5% in the primary segment and 28.9% in secondary transactions involving newer buildings. Sales in older projects increased by only 1.6%. Foreign nationals accounted for around 12% of transactions across old and new projects.

The gap between estimates of 4,409, 4,475 and 4,486 transactions reflects differences in methodology and registration treatment. All three datasets nevertheless show the same broad trend: apartment sales increased by more than 20% year on year.

New-build prices are rising faster than the market average

Price trends differ more substantially according to the segment being measured. The weighted average price of new apartments on the primary market was 10% higher in July than a year earlier. The increase for newer properties on the secondary market was 9.6%.

Geography also produced large differences. Weighted average new-build prices increased 10% in suburban areas, 14.7% in the wider center and 13.3% in central districts. The weighted average price of older housing stock across the city rose by 13.8%.

These figures are not directly comparable with the 4% increase in the broader average transaction price. One indicator covers a wider pool of completed sales, while the other separates new projects, primary and secondary transactions and different market areas.

Official housing price index rose 4.9%

The official Residential Property Price Index increased 0.9% quarter on quarter and 4.9% year on year in the second quarter of 2026. It covers only new residential property in Tbilisi, including apartments in multi-storey buildings and detached houses. The index was 63.8% above its 2020 average. Apartment prices increased 4.8% year on year, while detached houses rose 5.5%.

Mtatsminda remained the most expensive district for new apartments in the second quarter, with a median price of GEL 6,730 per square meter. Vake followed at GEL 5,914, Krtsanisi at GEL 4,630 and Saburtalo at GEL 4,307. Samgori was at the lower end of the range at GEL 3,680 per square meter.

Residential construction costs are rising slowly

Georgia’s National Statistics Office recorded a 0.8% monthly increase and a 4.3% annual rise in the overall Construction Cost Index in July. The residential segment moved very differently. Its index fell 1.3% from June and was only 0.5% higher than a year earlier. Non-residential construction costs rose 8.2% year on year, while civil-engineering construction increased 6.4%.

The overall monthly increase was largely driven by a 6.4% rise in average nominal wages for hired construction workers. On an annual basis, transportation, fuel and electricity costs increased 15.2%, wages rose 3.6%, and construction-material costs gained just 0.8%. Compared with February 2022, the overall construction cost index was 30.3% higher.

The headline 4.3% increase should therefore not be treated as a direct measure of residential development costs. Cost inflation in the housing segment itself was just 0.5% year on year in July.

Tbilisi rents remain broadly stable

The average rent for a 50–60 square meter apartment stood at about $10.1 per square meter per month in July, an increase of only 0.3% from June. Estimated gross rental yield remained around 8.5% a year.

The gap between purchase-price and rental growth is increasingly relevant to investors. If apartment prices rise faster than rents, yields on newly acquired properties can gradually decline. The 8.5% figure is also a gross measure and excludes vacancy, maintenance, furnishing, management, taxes and other ownership costs.

Rental rates vary considerably by district. Vake averaged about $15.1 per square meter in July, Mtatsminda $13 and Saburtalo $11.4. At the more affordable end of the market, Samgori averaged around $8.5, Gldani $8.6 and Didi Dighomi $8.7.

High interest rates constrain mortgage buyers

The National Bank of Georgia kept its monetary policy rate unchanged at 8.25% on September 9. Annual inflation stood at 5.6% in August against a 3% target, while core inflation was 3.6% and services inflation 4.4%. The central bank expects average inflation of around 5.2% in 2026. Economic growth reached 8% in July and averaged 7.9% during the first seven months of the year.

For housing, those indicators pull in different directions. Strong economic activity supports demand, while an 8.25% policy rate keeps borrowing relatively expensive for buyers who depend on mortgage financing.

As International Investment experts report, July’s figures confirm strong activity in the Tbilisi housing market, but increases of 24–37% in transaction value across different datasets should not be interpreted as comparable increases in apartment prices. Much of the expansion came from higher transaction volumes, while the city continues to add substantial new supply. Slow rental growth and expensive financing also reduce the investment appeal of some properties. Buyers therefore need to focus on actual transaction prices in the relevant district, the local development pipeline and realistic net rental returns rather than the headline growth rate for the entire market.

FAQ: Tbilisi real estate market

What does the reported 24% market growth mean?

It refers to an increase in transaction value in one of the major market datasets. Transaction value depends on both the number of apartments sold and their prices, so it should not be interpreted as a 24% increase in home prices.

Why do analysts report different transaction totals?

Market trackers use different approaches to primary and secondary sales. New-build statistics can also be affected by the delay between signing a purchase and formally registering ownership.

Is the citywide average price useful for valuing an apartment?

It provides a broad reference point, but prices vary substantially by district, building age, construction stage, property condition and transaction type.

Does a high gross rental yield equal an investor’s actual return?

No. Gross yield is calculated before expenses. Vacancy, maintenance, management, taxes, furnishing and other costs reduce the final return.

Can a large development pipeline affect prices?

Yes. Heavy construction can increase competition between projects in individual districts and limit both sale-price and rental growth.

Why can construction costs and apartment prices move differently?

Apartment prices depend on more than building costs. Land values, location, demand, supply, financing conditions, project specifications and developer margins also affect the final price.