Tbilisi Rental Prices Expected to Stabilize at $9-10 Per Square Meter in 2025 – Galt & Taggart
Rental prices in Tbilisi remained largely stable throughout 2024, averaging $10 per square meter, according to Zuka Tavkelishvili, an associate researcher at Galt & Taggart. Speaking to Business Partner, Tavkelishvili noted that this trend continued into December, with the average rental price reaching $9.7 per square meter.
"This represents a 9% annual decrease in rental prices. However, when compared to the peak price of March 2023, which reached almost $12 per square meter, the decline stands at 18%. This drop is primarily due to the waning migration effect, resulting in a decrease in additional demand. Additionally, the increased supply of rental properties—driven by newly completed residential buildings entering the market—has also contributed to the price decline," Tavkelishvili explained.
Looking ahead, rental prices in 2025 are expected to remain within the range of $9-10 per square meter, as demand and supply stabilize.
Galt & Taggart reports that over 40,000 apartments were sold in Tbilisi last year. Despite a turbulent year for the capital’s real estate market, total apartment sales increased by 1% annually.
"The local population remains the primary driver of demand, accounting for around 80% of total sales. Notably, the share of Russian buyers decreased in 2024, while demand from Israeli citizens increased," Tavkelishvili added.
The average price per square meter in the primary market rose by 11.6% year-on-year, reaching $1,320. This increase was partially due to higher construction costs. However, the pace of price growth has slowed compared to 2022-2023.
Looking forward, analysts at Galt & Taggart expect real estate prices to rise by 10% in 2025. However, political uncertainty may slow down overall demand.
In 2024, a total of 255 construction permits were issued for residential projects in Tbilisi, covering approximately 2 million square meters of living space. While this figure represents a 7% decrease from the record-breaking 2023 levels, it remains relatively high.
The majority of permits in 2024 were issued in Saburtalo, followed by Didi Digomi and Samgori, reflecting continued urban expansion and development in these areas
