Georgia’s Property Market in 2025: Batumi Surges as Tbilisi Hits $1,312 and Residency Rules Tighten

Georgia’s real estate momentum: what changed in 2025

The real estate Georgia market kept growing in 2025, but the story is not uniform. A new report from TBC Capital shows 78,500 total transactions, a 6% rise year on year, while average prices moved higher in key cities. These headline numbers matter because they show both continuing demand and an evolving market logic where buyers increasingly weigh long-term rental returns, infrastructure and product quality rather than quick speculative gains.

We think this phase is best described as maturation. The market is still open and accessible, yet the authorities are tightening incentives around residency-linked investment. That combination creates fresh opportunities and fresh questions for overseas buyers and investors.

Key figures and what they mean for buyers

• Total transactions in 2025: 78,500, up 6% from 2024.
• Secondary market transactions: 49,200.
• Primary market transactions: 29,300.
• Average price in Tbilisi: $1,312 per sq.m, up 4.1% year on year.
• Average price in Batumi: $1,395 per sq.m, up 16.5% year on year.
• New housing prices in Tbilisi since 2020: +57%.
• Residency-by-investment minimum from 1 March 2026: $150,000 (third increase since the program started).

Those figures tell us two concurrent trends. One, secondary-market activity is dominant, signalling real demand for existing stock and established neighbourhoods. Two, Batumi’s fast rise shows tourist-driven valuation pressure where coastal developments and short-stay rental economics push prices faster than in the capital.

For buyers this means: if you want immediate rental cashflow from tourists, Batumi remains attractive. If you prefer longer-term capital growth rooted in local demand and services, Tbilisi’s broader economy and secondary market depth are safer bets.

City-level breakdown: Tbilisi versus Batumi and what drives each market

Tbilisi: steady growth, rising new-build costs

Tbilisi recorded an average of $1,312 per square metre, up 4.1% for the year. New housing in the capital has jumped about 57% since 2020, with private houses appreciating faster than apartments according to official statistics. That sharp rise reflects constrained supply of new, modern homes close to central amenities and a rebound in demand from both domestic buyers and foreigners.

Key factors in Tbilisi:

• Strong secondary market activity points to buyers valuing established neighbourhood infrastructure.
• New projects are still adding supply, but at a slower pace than price increases, particularly in quality segments.
• Private houses outperform apartments, suggesting a preference for ownership models that offer more control and longer-term rental prospects.

Batumi: tourism turbocharges prices

Batumi saw the sharpest price growth in 2025, +16.5%, with an average $1,395 per square metre. The coastal city’s role as a tourism hub is the main engine: hotel development, beachfront projects and investor interest in short-term rentals have pushed new-build prices higher than in the capital.

What that implies:

• Short-stay rental investors find Batumi’s occupancy and revenue trends favourable.
• Development here can be cyclical; supply can accelerate quickly when returns look high.
• For long-term investors who prefer stable yields, micro-location selection is critical because beachfront premiums can be more volatile.

Who is buying and why the residency rule change matters

Foreign demand remains a central driver of the Georgian property market. Buyers from Israel and various EU states account for a significant share of cross-border purchases. Historically, relatively low entry costs and straightforward transaction procedures attracted international capital.

Policy shift: effective 1 March 2026, the minimum real estate investment required to qualify for a temporary residence permit will rise to USD 150,000. This is the third increase since the residency-through-investment programme began. The change signals a deliberate move by authorities toward attracting larger and longer-term investments.

Investor implications:

• Buyers who valued the program as an affordable route to residency now face a higher entry threshold. Those planning purchases for residency should accelerate timelines to beat the new threshold or adjust budgets.
• Higher thresholds should filter out small-scale speculators and attract purchasers able to commit more capital, which can push up demand for higher-quality stock.
• We expect some short-term transactional acceleration before 1 March 2026 as buyers rush to meet the old threshold, which could temporarily raise prices in the qualifying bands.

Beyond homes: commercial, retail and hospitality pockets gaining momentum

Residential property gets most of the headlines, yet other sectors are becoming meaningful parts of investment strategies:

• Office and retail: Tbilisi shows a growing pipeline of modern office and retail space, responding to corporate demand and international retail entrants.
• Hospitality: Batumi continues to see hotel development and rising occupancy, which support investor returns in short-stay and mixed-use schemes.
• Mixed-use developments: Projects that combine retail, office, and residential components attract buyers focused on diversified cashflow.

Tourism underpins much of this activity. Strong travel numbers increase hotel revenues and short-term rental occupancy, feeding back into residential demand where investors target holiday-let income. That said, success depends on management, regulatory clarity around short-term rentals, and local infrastructure to support visitor volumes.

Risks, weak spots and what can go wrong

We are optimistic about market prospects but not blind to pitfalls.