Georgia’s recent achievement in attaining EU Candidacy will impact property prices in its capital, Tbilisi. Tbilisi’s property market is dominated by apartments – we explore how the price of real estate in Tbilisi compares to all EU capital cities. Read on…

Price of Real Estate in Tbilisi

The price of Real Estate in Tbilisi, varies considerably by district and by building standard. Apartments in the core central districts of Mtatsminda/Vera/Vake command significantly higher prices than the outer suburbs.

Tbilisi has a sizable stock of old, poor quality buildings that negatively impact the average prices in the city.

At the upper end, a top quality, new apartment in Vake can set you back $4,000/m2, whilst at the lower end, a poor quality apartment in an old dilapidated building in the outer suburbs can cost as little as $500/m2.

Why is the price of property in Tbilisi so much less than other European Capitals

Several factors contribute to the comparatively lower property prices in Tbilisi compared to other European capitals. Understanding these factors provides insights into the unique dynamics of Tbilisi’s real estate market:

Tbilisi Real Estate Prices

Economic Disparities

Tbilisi, as the capital of Georgia, experiences different economic conditions from many Western European capitals. Georgia’s overall economic development and income levels contribute to a lower overall affordability for real estate compared to more economically developed countries. Average nominal salaries in Georgia are ₾1,855 ($692), and  ₾2,160 ($806) in Tbilisi.

Georgia, although making significant strides in economic growth, is not as economically developed as many Western European countries.

Download our “state of the market” Georgia economic indicators PDF

Historical and Political Context

Since gaining its independence in 1991, Georgia has experienced periods of economic challenges and political instability. The 1990’s in particular were tumultuous. However, since the early 2010’s, Georgia has experienced a strong period of political stability and economic growth. These historical and political contexts have influenced investor confidence and impacted property prices. In contrast, the more politically stable and economically developed European capitals have commanded higher property values for a longer period.

Market Maturity

Real estate markets in some EU capitals have matured over centuries, leading to higher property prices when compared to Tbilisi. Tbilisi’s market is still evolving, and the relatively recent surge in interest and development has not reached the levels seen in more established European capitals.

The influx of foreign investment plays a significant role in shaping real estate markets. Tbilisi still attracts less foreign investment compared to major European capitals, impacting the demand-supply dynamics and, consequently, property prices.

Cultural and Lifestyle Factors

Cultural preferences and lifestyle considerations influence property prices. Tbilisi has a unique set of lifestyle offerings and cultural attractions compared to more established European capitals. Tbilisi, and Georgia generally, is relatively unknown to the average Western tourist, but this is changing fast. 
Georgia is gaining international attention, and is tipped to become the next Berlin, and has also featured in the prestigious National Geographic Travel Magazine Top 100 cities to visit.

Urban Development and Infrastructure

The level of urban development and infrastructure in Tbilisi is evolving but doesn’t yet match the extensive networks found in major European capitals. Access to well-developed infrastructure, public services, and amenities often contributes to higher property values.

Urban regeneration has been ongoing in Tbilisi in recent years, with major works completed in Vake, Avlabari, Marjanishvili and Didube.

Real Estate

Global Real Estate Trends

Real estate values are also influenced by global trends. European capitals experiencing high demand from international investors or those popular tourist destinations have traditionally put upward pressure on property prices. Tbilisi’s status in the global real estate market differs from these capitals.

Banking & Finance

There’s is a significant disparity in interest rates between the ECB and NBG (National Bank of Georgia). As Georgia moves closer towards EU membership, there will be an inevitable convergence between these interest rates, signaling a boost to Tbilisi’s real estate market.

Tbilisi’s residential gross rental yields have hovered around 10% for the past decade, and are attractive to the western investor compared to typical yields attainable in the EU.

Regulatory Environment

Differences in regulatory environments, including property taxes, development regulations, and legal frameworks, can contribute to variations in property prices. Tbilisi’s regulatory landscape differs from that of more established European capitals.

As Georgia aligns itself with the EU, more stringent building regulations are inevitable. Whilst these regulations will improve the quality of new construction, they will inevitably increase construction costs, leading to higher real estate prices.


It’s important to note that while Tbilisi may have lower property prices compared to all European capitals, this doesn’t necessarily imply a negative aspect. Lower property prices present opportunities for investors and contribute to the city’s appeal for those seeking affordable real estate options. As the city continues to develop and gain global recognition, the real estate landscape will undergo further changes.
Our Comprehensive Buyers Guide provides a comprehensive overview of the most important topics affecting any real estate purchaser in Georgia.

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Brian Loughnane
Brian Loughnane

Head of Real Estate Services He is our expert in the Georgian Real Estate market, with a deep understanding of the buying process, and focused on representing client interests.