Construction Costs Rise Again in Georgia

The cost of construction has increased once more, with the sector experiencing a 5.9% year-on-year rise in the construction cost index as of January 2025.

The primary drivers behind the increase include a 22% rise in average wages for construction workers and an almost 4% increase in the price of construction materials. These factors have contributed significantly to the overall rise in construction expenses.

The upward trend in costs poses challenges for developers and investors while potentially influencing property prices in the market. As construction remains a key sector for economic growth, industry stakeholders are closely monitoring price dynamics and their impact on future projects.