Real estate in Tbilisi: value in the Caucasus

Today's article is a bit outside of our usual focus. Normally we focus on Southeast Asian real estate markets, but Georgia is located in the Caucasus region bordering Europe and Asia. Georgia (the country, not a US state to be 100% clear) is more westernized than any other emerging economy we've written about so far.

Georgien hat eigentlich keinen schlechten Ruf in der Welt.

They merely don't have much of one at all. Beyond semantics, our main goal is to inform readers about countries that deserve investors' attention. Keep reading to find out why the real estate market in the capital cityGeorgia, Tbilisi, is one of the most underrated in the world.

Georgia, while it doesn't have a bad global reputation, doesn't have one at all.

However, foreign investors often choose the real estate market based on their perception. Georgia is rapidly gaining popularity among tourists and companies. In recent years, the number of international arrivals inGeorgiahas increased significantly.

Miro It may seem that the prices are high. However, it's worth remembering that the countries capital or main business centers have a certain clout that simply isn't available in other cities. As living in a country's capital is often the only way for businesses, both local and international, to function effectively in the country. High demand increases the prices ofreal estate- especially in smaller countries, such as Georgia, with only one major city.

Could you count the number of metropolitan cities where it's possiblebuycentral real estate for less than $1,000U.S.per square meter, on the fingers of one hand. Tbilisi was on this list until recently. For 2024, prices have roughly doubled compared to a few years ago due to the influx of foreign buyers. Noticeably, rental yields in Tbilisi are also high, hovering around 8%. Buyingapartmentsorhousesin Tbilisi for rent with the expectation of long-term growth in value remains a reasonable option.

All these factors indicate that the real estate market in Tbilisi is clearly undervalued in an international context. There is reason to believe that real estate prices in Tbilisi may continue to increase. Newly built one-bedroomapartmentin Tbilisi costs about $100,000. This is a price unrivaled in almost any other capital city in Europe or Asia.