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Georgian real estate has become one of the three most popular overseas property markets among Russian buyers. The country rose from fifth to third place in the third quarter of 2026, BM.ge reports, citing research by NF Group. Buyers are attracted by the opportunity to use properties as homes or holiday residences and to earn rental income.

Overseas Property Rankings

The UAE topped the list of the most popular countries for Russian property purchases in the third quarter of 2026. Thailand ranked second, followed by Georgia, which had been fifth in the first half of the year. Turkey came next, while Mauritius and Oman shared fifth place. Greece, France and Spain, previously among the most sought-after destinations, lost ground, although interest in European property remains.

These changes do not necessarily indicate a major shift in Russian buyers' preferences. NF Group explained that individual transactions can affect quarterly results, so the ranking may change again by year-end.

When buying property abroad, Russians consider whether they can use it as a home or holiday residence and generate rental income. Demand for luxury homes also remains, with prices rising moderately in popular markets because of inflation and higher construction costs. Analysts have not identified major price declines or sharp increases.

Transport links and entry requirements are also important. Anna Larina, head of overseas and resort property at NF Group, expects demand to remain strong in destinations offering direct flights and visa-free entry.

Who Buys Property in Georgia?

Russians are gradually increasing their presence in Tbilisi's real estate market. According to Galt & Taggart, their share of apartment transactions in developments by major companies was 2% in 2024, 3% in 2025 and 4% in January–July 2026. Georgian residents account for most demand, at 74%, while Israeli citizens represent another 11%.

Batumi has a more diverse buyer base. Researchers examined sales in more than 30 residential complexes, covering approximately 40% of the local new-build market. In the first quarter of 2026, Georgian residents accounted for 37% of purchases, citizens of European countries for 18%, and Israelis for 16%. Russia, Ukraine and Belarus combined represented 13%, and Turkey 10%.

Colliers Georgia also recorded a rise in the foreign share of apartment purchases in Tbilisi, from 12% in July to 14% in August 2026. In Batumi, the figure increased from 48% to 52% over the same period.

Property Buyers in Tbilisi and Batumi

Note: Tbilisi figures cover January–July 2026 and apartments sold by major developers; Batumi figures cover a sample of residential complexes in Q1 2026. Source: Galt & Taggart. A dash indicates that comparable data were not provided.

Apartment Sales in Tbilisi and Batumi

Colliers Georgia identified new trends in Georgia's property market in August 2026. Its analysis covers all apartment sales, regardless of buyers' nationality.

Tbilisi recorded 3 388 transactions, up 18.9% from August 2025. Total sales value increased by 35.2% to $297 million. Activity in newly built housing rose particularly strongly, by 23.7%, while sales of older properties increased by just 3.8%.

In Batumi, apartment transactions declined by 4.3% to 1 235, although their total value rose by 2.9% to $81 million. Sales in new developments fell by 6.3%, while transactions in older housing increased by 31.4%.

Analysts attribute Batumi's decline to a high comparison base in August 2025, when large batches of contracts were registered simultaneously in several residential projects. This affected the annual comparison and does not yet indicate a sustained weakening of demand.

Apartment Sales in Tbilisi and Batumi, August 2026

Source: Colliers Georgia. Changes are measured against August 2025.

Property Prices and Rental Yields in Georgia

Housing prices in Georgia continue to rise, while rental income has not kept pace. This is reducing investment yields and extending apartment payback periods.

In August 2026, the average price of apartments in Batumi's new developments reached $1 386 per sq. m, up 1.2% year on year, Colliers Georgia reports. Resale prices for these properties rose by 12.8%, while prices charged by developers fell by 16.3%. Analysts attribute the latter figure to the high comparison base of August 2025, when particularly expensive deals were completed. Without their effect, the increase would have been 1.2%.

In Tbilisi, new homes appreciated by 11.9% when bought from developers and by 11% on resale. The largest increases were recorded in central districts, at 16.7%, followed by neighborhoods adjacent to the center at 16%, and outer districts at 10.4%.

According to Galt & Taggart, in July 2026 the average monthly rent for apartments measuring 50–60 sq. m in Tbilisi was $10.1 per sq. m. The rate was $15.1 in Vake, $13 in Mtatsminda, $11.4 in Saburtalo and $8.5 in Samgori.

Gross residential rental yield in the capital was estimated at 8.5% annually. This is a theoretical figure that excludes maintenance, repairs, taxes, management fees and potential vacancies. Owners' actual returns may be significantly lower.

Property Price Changes in Tbilisi and Batumi, August 2026

Source: Colliers Georgia. Changes are measured against August 2025. The 16.3% decline in Batumi developer prices reflects a high comparison base.

Investment Outlook for Georgian Real Estate

International Investment analysts note that Georgia's property market remains attractive to foreign investors. Russians continue to play a significant role, although Israeli citizens are moving into leading positions. Interest in the country is supported by straightforward entry and long-stay rules, unrestricted foreign ownership of apartments and low taxes. In October 2026, the annual household income threshold for exemption from property tax was raised to GEL 100 000 (approximately $37 000).

At the same time, residential rental yields have been declining in recent years, particularly in Batumi. The resort city has seen growing apartment supply and stronger competition among landlords, while rental revenue remains highly seasonal. The fall in transactions in August 2026 provided another sign of changes in the local market. Rising purchase prices are also extending investment payback periods.

Premium hotel projects managed by international operators appear to offer a more promising investment direction. Unlike individual apartment owners, hotel companies have professional teams, booking systems and distribution networks that attract guests from various countries. These resources help sustain occupancy outside the summer season, while international brand standards support demand from higher-spending travelers. With effective management, such properties can generate higher and more stable returns, making them an appealing alternative to conventional residential rentals.

FAQ

Why did Georgia enter the top three overseas property destinations for Russians?

Georgia moved from fifth to third place in NF Group's ranking in the third quarter of 2026. Buyers value the entry and residency conditions and the ability to purchase a home for personal use or rental income.

Which countries ranked ahead of Georgia?

The UAE ranked first and Thailand second, with Georgia in third place.

Who buys apartments in Tbilisi and Batumi?

Georgian residents account for most transactions in Tbilisi, while Israeli citizens have a notable share of overseas purchases in major developers' new-build projects. Buyers in Batumi include residents of Georgia, European countries, Israel, Russia and other markets.

How did apartment sales change in Tbilisi and Batumi?

In August 2026, Tbilisi recorded 3 388 transactions, 18.9% more than a year earlier. Batumi registered 1 235 sales, down 4.3%.

Who qualifies for property tax exemption in Georgia in 2026?

Individuals whose household income in 2025 did not exceed GEL 100 000 are exempt from property tax, excluding land tax. The threshold was raised in October 2026.

Which real estate investment options are available in Georgia?

Alongside apartments for personal use or rental, investors are considering professionally managed premium hotels. Their returns depend on the operator, occupancy and management agreement.