International Private Investment: Georgia’s Real Estate Market in Q1 2025 — Market Stats, Economic Indicators, and New Developments

International Private Investment, a global consulting group, has released its Q1 2025 analysis of Georgia’s real estate sector, highlighting economic trends, foreign investment dynamics, property prices, and new development projects. The South Caucasus nation remains one of the region’s most promising emerging markets, with strong long-term growth potential.

Georgia’s Economy Grew by 13.6% in 2024

According to Geostat, Georgia's National Statistics Office, the country's GDP grew by 13.6% in 2024, reaching 91.9 billion GEL ($33.2 billion). The main drivers were wholesale and retail trade, vehicle repair (15.2% of GDP), real estate activities (9.9%), and manufacturing (9.3%).

Despite solid economic growth, FDI dropped by 29.9% in 2024 to $1.3 billion. However, in Q4 2024, FDI rose by 24.4% year-over-year, indicating a post-election rebound. The decline was largely due to a temporary slowdown ahead of Georgia’s parliamentary elections in October 2024.

The top investing countries were the UK ($448.2 million), Malta ($175.8 million), and the Netherlands ($151.7 million). Real estate remained the third-largest investment sector, reflecting Georgia’s steady international investor appeal.

Georgia’s Real Estate Market: 2024-2025 Trends

Georgia’s residential real estate market is stabilizing after rapid growth in 2022–2023.
According to Geostat, in Tbilisi, average prices per square meter in 2024 were: $1,477 (green frame), $1,286 (white frame), $1,157 (black frame).

Monthly price growth averaged 1% in 2024, down from 2–3% in previous years.

In Batumi:
- Transactions fell by 18.5% in 2024, totaling 15,195 deals.
Market volume dropped by 11.6%, to $977.5 million.
- But average price per m² rose by 11.4%, reaching $1,470.

Segment breakdown:
- Budget: 46.3%
- Midscale: 32.5%
- Upscale ($1501–$2500): 18.9%
- Premium: 2.3%

Premium property in Batumi is the market’s growth engine, with annual price growth exceeding 30% due to limited land supply. Top-priced areas: Old Town ($2,031/m²), Gonio-Kvariati ($1,965/m²). Most affordable: New Boulevard ($1,413), Makhinjauri ($1,364), Kobuleti ($1,265). Rental yields in Batumi remain high at 8.8%, maintaining investor interest.

As of February 2025:
- New build prices rose 14.4% YoY ($1,189/m²)
- Secondary market: +8.8% YoY ($1,099/m²)
- Deal volume: +6.4%
- Total market turnover: +13.1%

In Tbilisi (Jan 2025):
- Prices up 7.2% overall
- New builds: +7.6% ($1,319/m²), Secondary: +6.9% ($1,229/m²)
- Avg. rental price: $9.7/m²
- Sales volume: 2,918 deals (down 4.9% YoY)
- Market turnover: $242.2 million (+5.7%)
- Construction permits hit record low (7 permits, −46.1%)

According to TBC Capital (Feb 2025):
- 3,185 deals in Tbilisi (down 5% YoY)
- Avg. sale price: $1,222/m² (+1%)
- Rental prices dropped by 12% to $10.6/m²
- Market turnover: $253 million (−6%)

This data shows the market is entering a natural correction phase, shifting from quantity to quality, with premium and high-end properties leading the trend.

Georgia’s Tourism and Real Estate Connection

Tourism is a core driver of Georgia’s economy and real estate sector. The structure of inbound tourism is shifting toward high-spending travelers, fueling demand for luxury properties and branded hotels.

In 2024:
- 6.5 million international tourists visited Georgia (+4.6% YoY)
- Overnight trips rose by 9%, day trips dropped by 9.2%
- Top source markets: Russia (22%), Turkey (20.7%), Armenia (14.7%)
- Fastest-growing markets: China, India, Israel
- Tourism revenue: $4.4 billion (+7.3% YoY)

Top spenders per visitor:
- Israel: $1,404
- Saudi Arabia: $1,382
- EU + UK: $1,303

Georgia is increasingly positioning itself as a premium tourist destination, attracting affluent visitors.

New Projects

ARTEX Residential Complex (Batumi):

Launch: April 2025 | Completion: Dec 2029

Location: Angisa Street

3 towers, 1,094 units (studios to 2BR)

Price segment: Budget to Midscale

Amenities: Supermarket, coworking, gym, spa, daycare, cinema, pet area, pool

Ambassadori Tower (Batumi):

Launch: Jan 2025 | Completion: 2029

57 floors, 71,000 m²

Ceiling height: 3.2 m

Units: Studios to 2BR, starting at $2,800/m²

Facilities: Rooftop terrace, outdoor pool, fitness, restaurants, panoramic views

This signals a shift to luxury living in Georgia, with strong demand driving up prices across all segments.